Death Of GPU Mining? Popular Crypto Profits Go Into Negative As Ethereum Miners Flood Market | Bitcoinist.com

Bitcoinist

Mining profits of the PoW cryptos have gone into the negative following the Ethereum merge as ETH miners flood the hashrates of these other coins.

Mining Profits Of Popular Proof-Of-Work Cryptos Like Ethereum Classic Crater After The Merge

A couple of days ago, the much awaited ETH merge finally arrived and transitioned the network into a PoS-based consensus mechanism.

How To Get Free Crypto  
5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

Since proof-of-stake chains don’t rely on miners for hashing blocks, every miner attached to Ethereum was left without the whole of their revenues.

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

There is, however, one problem with miners shifting to other coins and it is that all the PoW cryptos that utilize graphics cards for mining (that is, those other than Bitcoin) had magnitudes lesser hashrate than ETH did before the merge.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?

There is a general concept of mining difficulty across crypto chains, where the network adjusts the rate at which miners can hash new blocks according to the total hashrate. Usually, coins increase the difficulty when the hashrate goes up to balance things out and keep the block production rate near constant.

Coinbase Banner  

A flood of GPUs previously being used for ETH mining suddenly entering into these other, significantly smaller hashrates would therefore result in a difficulty explosion.

Here is some data from the crypto mining profits calculator website WhatToMine that shows where the profits of the PoW coins with some of the largest market caps currently stand:

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

As you can see in the above table, Ethereum Classic, the coin that’s currently the most popular mining option in the market, nets 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 for making the calculation.

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

FreeBitcoin Banner  

As some already speculated before the merge, it would appear there just wasn’t any crypto with hashrate and market cap large enough to absorb the ETH miners, which made up for the vast majority of GPU crypto miners out there.

It’s possible a PoW coin can rise up in the future to become large enough to host comparable amounts of hashrate as Ethereum once did, but for now it would seem graphics cards-based mining may be dead.

ETH Price

At the time of writing, Ether’s price floats around $1.4k, down 6% in the past week.

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

Go to Source
Author: Hououin Kyouma


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.