So many GPU miners and nothing left to mine. Aww 🥲
The ethereum merge has finally happened! After years of planning, development, and delays, ethereum’s shift to a proof-of-stake consensus mechanism has seeming gone off without a hitch. Ethereum miners have been made redundant, and hopefully, this is the official end of large-scale GPU mining—the bane of PC gamers worldwide—forever.
In the lead up to the switch, miners mostly stopped buying new GPUs, while others dumped their cards on the second-hand market. Both of these are significant factors behind the graphics card price drops that have been happening this year. In fact, many cards haveBut not all miners are shutting up shop. The ethereum hash rate didn’t drop as much as expected in the days and hours before the merge, meaning many miners were holding out for the last few blocks and rewards up until the last minute.
Ethereum was by far the most profitable proof of work coin. Ethereum classic is the currently best post merge alternative for GPU miners. ETC is a hard fork of ethereum that occurred in 2016 following a factional split and it's seeing an influx of ex-Eth miners over the last 24 hours. But miners hoping to maintain profit levels anywhere near that of pre-merge Eth are quickly being disappointed.
The market cap of ethereum currently sits at around $177 billion, while ethereum classic sits at just over $4.6 billion, so straight away, block rewards are going to be dramatically lower. But that's not the only reason that contributes to lower profitability. Proof of work algorithms dynamically adjust according to the amount of network hash power. In general, the more hash power there is, the harder it is to generate block rewards. This means that ex-Eth miners looking for easy rewards are going to find it more and more difficult, as more of them switch over.
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