The Ethereum Mining Industry Ends

 172 total views

2022-09-24 08:37:48

Ethereum, the second largest cryptocurrency by market, has seen the elimination of graphics card-based mining. Now, the Ethereum community’s cryptocurrency mining becomes worthless.

On the morning of September 15, Ethereum officially abolished GPU-based mining, cutting down on the energy consumption of the entire network. The merging process (The Merge) is completed with the Proof – of – Stake (PoS) mechanism.

The news of the old mining method being removed is a bad thing for miners, especially those who focus on ETH mining as the main source of profit.

“The Merge ended everything. All my crypto mining rigs are currently down,” shared Philip Robb, a cryptocurrency miner.

The profit of mining other coins is too low compared to ETH

The profit of mining other coins is too low compared to ETH

Faced with this situation, many miners have turned to other cryptocurrencies, such as Ergo and Ravencoin. But because their price is too low, mining does not bring significant profits.

A miner named Blake Teeter said that he also faced a similar situation. Despite possessing dozens of powerful GPUs, with high equipment operating costs, mining most cryptocurrencies on the market is unprofitable.

According to WhatToMine, cryptocurrency mining is only possible for mining certain cryptocurrencies, and in an area with low electricity costs. Even in the case of meeting the above conditions, the return is still low, especially much lower than mining Ethereum before the time of the update.

Since The Merge took place, many miners have been forced to shut down their rigs to save energy costs. They gradually sold the graphics cards to buyers on Ebay or Facebook.

“Nobody is making a profit at this point. I will soon sell about 50 of my existing graphics cards,” shared an unnamed miner.

On the other hand, some miners decided to wait for the market to bounce back.

“I’m cleaning up my rigs and watching the market until a few reasonable potential cryptocurrencies to mine appear. I think graphics card mining will still have a place in the industry for the next few years,” said miner Blake Teeter.

Another line of opinion points out that cryptocurrency mining is like a stock market game. They hope that in the future Ergo and Ravencoin cryptocurrencies will explode in price, so mining is extremely worthwhile even at a loss. However, many speculate that the mining community will initiate a massive GPU sell-off due to the loss of profits.

“A lot of people, even companies, have taken out loans to buy crypto mining equipment. Now the value of digital currencies is very cheap. With absolutely no mining income, miners will soon have to sell their equipment,” said Vasil Alyoshin, co-founder of cryptocurrency exchange Bonex and a miner.

ETC mining difficulty increases

ETC mining difficulty increases
ETC mining difficulty increases

According to data on 2miners, ETC difficulty on September 15th hit an all-time high. As of the evening of September 16, ETC’s hashrate is up to 290 terahash per second (TH/s). The reason is that too many people simultaneously switched to mining this coin.

Many people are also hoping for Ethereum to fork a new fork, continuing to maintain the PoW mechanism for miners to mine. However, no one knows exactly when this fork will go live and whether the price of that Ethereum coin will be enough to guarantee a profit for miners. While waiting for the next market movement, the miner was forced to stop working. In the worst case, these machines will have to be cheaply liquidated, even covered with mats.

The move from PoW to PoS is seen as Ethereum’s goal in limiting carbon consumption, with a reduction of up to 99.95% compared to before. This can also be considered the end for Ethereum miners, because current mining systems mainly use PoW mechanism to operate. Meanwhile, PoS only does the authentication task, so it does not consume as much energy as before.

#Ethereum #Mining #Industry #Ends

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *

Close Bitnami banner