crypto strategy

Is GPU Mining Profitable After Ethereum Merger?

The merger forced miners to switch to alternative GPU-mined cryptocurrencies, a newly derived version or to dump or sell their gear for cheap.

Switch to other GPU-minable cryptocurrencies

One of the direct effects of the merger includes miners turning to the Ethereum fork, Ethereum Classic (ETC), to continue using their equipment. For example, the hash rate of the blockchain fork increased the day after the merger. The hash rate describes the computing power required to approve a transaction on the blockchain via a proof-of-work consensus mechanism.

While the Ethereum Classic blockchain still practices the PoW method for mining, the Canadian-based blockchain Hive (crypto mining giant) has unveiled its plans to mine other proof-of-work cryptocurrencies like ETC, Dogecoin (DOGE) and Litecoin (SLD), among others. However, switching to a PoW blockchain may compromise the environmental benefits offered by the PoS version.

Ethereum miners can upgrade to a newly forked version

A Chinese miner who resists Ethereum network switch to Ethereum forked proof-of-stake to preserve the proof-of-work consensus method. The newly forked version is called the EthereumPOW (ETHW)which hopes to accommodate GPU miners in the future.

Trading in tokens reflecting an Ethereum proof-of-work fork is supported by cryptocurrency exchanges like Poloniex and BitMEX as well as the Blockchain Tron.

Some of the GPU miners may quit the game

It is difficult to go back to the previous revenue figures provided on Ethereum. These chances are low with stablecoin chains or any other PoW blockchain. Hash rate spillover to alternative GPU-minable coins is also a threat to the mining business.

It is difficult to earn the previous rewards that were offered on Ethereum, due to which miners started turning to alternative GPU-mined coins. However, the increase in hash rate means an increase in mining difficulties, forcing miners to get rid of GPU miners.

Hive blockchain agrees that only miners with efficient equipment will be successful in the long run for this reason. As a result, many miners may sell their GPUs if the difficulty of alternative chains keeps increasing.

On the other hand, the sale may not take place because a dumping effect will result from an increasing supply of GPU capacity compared to a decrease in demand. Therefore, the likely results of such a scenario can be that a large majority of miners get rid of or sell their equipment at a low price. However, as crypto mining puts a strain on GPU hardware, gamers and even movie editors might not be optimistic about buying the machines.

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