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PoW crypto mining profits have turned negative after the Ethereum merger as ETH miners flood the hashrates of these other coins.

Mining profits of popular proof-of-work cryptos like Ethereum Classic Crater after the merger

A few days ago, the long-awaited ETH merger finally took place come and transitioned the network to a PoS-based consensus mechanism.

Since proof-of-stake chains do not rely on miners for hashing blocks, every miner tethered to Ethereum was left without their entire earnings.

Some of these miners sold their mining rigs in order to exit the market, while others moved on to the remaining proof-of-work networks.

There is however a problem with miners turning to other coins and that is that all PoW cryptos that use graphics cards for mining (i.e. those other than Bitcoin) had lower magnitudes. hash rate than ETH before the merger.

There is a general concept of mining difficulty across crypto chains, where the network adjusts the speed at which miners can hash new blocks based on the total hashrate. Usually, coins increase in difficulty as the hashrate increases to balance things out and keep the block production rate nearly constant.

A flood of GPUs previously used for ETH mining suddenly entering these other significantly smaller hashrates would therefore cause the difficulty to explode.

Here is some data from the Crypto Mining Profit Calculator website WhatToMine which shows where PoW coin profits currently stand with some of the largest market caps:

Crypto Mining Profits Ethereum Classic

No crypto in the list is offering positive mining profits currently | Source: WhatToMine

As you can see in the table above, Classic Ethereum, the coin that is currently the most popular mining option on the market, earns miners a profit of -0.78$ per hour right now. This figure assumes an average electricity price of $0.1 per kWh and uses the hash of three AMD RX 480 graphics cards to perform the calculation.

Even with the most powerful GPU available on the market, the 3090ti, hourly ETC mining profits remain negative at around -$0.50.

As some had already speculated before the merger, it looks like there simply isn’t any crypto with a big enough hashrate and market cap to absorb ETH miners, who made up the vast majority of GPU crypto miners. .

It’s possible that a PoW coin will grow in the future to become large enough to host comparable amounts of hashrate to Ethereum, but for now it would seem that graphics card-based mining is dead. .

ETH price

As of this writing, Ether’s price is floating around $1.4k, down 6% in the past week.

Ethereum Price Chart

ETH value tumbles down | Source: ETHUSD on TradingView
Featured image from GuerrillaBuzz Crypto PR on, chart from

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