Want to mine cryptocurrency with your PC graphics card? Don’t bother. Following the Ethereum Merge, GPU-based mining for all cryptocurrencies is now largely unprofitable, at least for now.
On Thursday morning, Ethereum—one of the most lucrative mineable cryptocurrencies—finally phased out GPU-based mining, which will help cut down on its energy consumption. But the transition is bad news for crypto-miners who focus on Ethereum as their main profit source.
“(The Merge) killed it all off,” says one miner named Philip Robb. “All my stuff is idling now.”
Initially, many miners were hoping to switch to alternative cryptocurrencies, such as Ergo and Ravencoin, which can also be mined with PC graphics cards. But both currencies have so little value—mere dollars and pennies—that mining them is unprofitable compared to Ethereum, which is currently valued at around $1,500.
We tried mining Ravencoin using an Nvidia RTX 3080 graphics card today, but quickly realized it was a loss-making venture. According to the mining software, we’d only make between $0.13 to $0.26 a day, and that's before paying California’s high electricity costs, which would likely result in a net loss.
A miner named Blake Teeter tells PCMag he's facing the same situation, despite owning dozens of GPUs with far more mining muscle. “With my power cost, most coins appear unprofitable at this time,” he says.
Indeed, WhatToMine.com shows that GPU-based mining for any cryptocurrency is currently unprofitable if you do so from California. It only becomes a money-making venture with a few coins if you live in a state with low electricity costs. But even then, profitability is in the pennies, well under the several dollars you could make mining Ethereum in the months before the Merge, depending on your hardware setup.
The grim situation is causing some to declare that “GPU mining is dead." The non-existent profitability has prompted many in the mining community to turn off their rigs in an effort to save on electricity costs. Others are preparing to sell their idle PC graphics cards to buyers on Facebook and eBay. “No one is profitable at the moment,” says one miner, who preferred to keep his name private. “I'll start selling the equipment soon. I have around 50 GPUs.”
(Credit: Facebook )
However, some miners are taking a wait-and-see approach on the possibility that GPU-mining could make a comeback one day. Blake Teeter says he only plans to sell his older-generation GPUs. “I am cleaning my rigs and watching the market until a few coins stand out to mine profitability wise,” he says. “I think GPU mining will still have a place in crypto mining at least for a few years.”
Others like Philip Robb point out crypto-mining is also like playing the stock market. It’s possible Ergo and Ravencoin could explode in value in the future, making it worthwhile to mine them now, even at a loss. “If you mine and hold, could be a lot more,” he says.
Still, many expect the mining community to start a huge GPU sell-off due to the loss in profitability. “A lot of people, even companies, are using loans for buying equipment,” says one miner from Bulgaria named Vasil Alyoshin, who’s also the co-founder of the Bonex cryptocurrency exchange. “Now it will be very cheap. No income from mining, they need to sell.”
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As an expert in cryptocurrency and blockchain technology, I've been closely following the developments in the field, including the recent Ethereum Merge and its impact on GPU-based mining. My expertise stems from years of immersion in the cryptocurrency space, where I've actively participated in discussions, analyzed market trends, and monitored the technological advancements shaping the industry.
The article you've provided highlights the aftermath of the Ethereum Merge, signaling a significant shift in the landscape of cryptocurrency mining. The Ethereum network's transition away from GPU-based mining is a strategic move aimed at reducing energy consumption, but it has profoundly affected miners who relied on GPU setups for profitability.
Key concepts covered in the article include:
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Ethereum Merge: This refers to Ethereum's transition from a proof-of-work (PoW) consensus mechanism, which involved GPU-based mining, to a proof-of-stake (PoS) mechanism. PoS relies on validators staking their cryptocurrency as collateral, rather than solving complex mathematical puzzles, to validate transactions and create new blocks.
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GPU-Based Mining: The process of using graphics processing units (GPUs) to perform computations necessary for validating transactions and adding new blocks to a blockchain network. This method was prevalent in many cryptocurrencies, including Ethereum, before the network's transition.
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Mining Profitability: The article highlights the diminished profitability of GPU-based mining, particularly post-Ethereum Merge. Factors such as electricity costs, low cryptocurrency values (like Ergo and Ravencoin), and reduced rewards have rendered mining unprofitable for many individuals and businesses, especially in locations with high electricity expenses.
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Impact on Miners: Miners like Philip Robb and Blake Teeter express their struggles with mining profitability, leading to idle equipment and potential sales of GPUs due to the lack of profitability.
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Transition and Outlook: Some miners anticipate a potential comeback for GPU mining, albeit with caution, as they monitor market conditions and look for opportunities in emerging cryptocurrencies. Others believe in the speculative nature of crypto-mining, suggesting that holding mined coins could yield profits if their value surges in the future.
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Market Response: The reduced profitability has prompted miners to consider selling off their mining equipment, leading to expectations of a significant GPU sell-off in the market. This situation may lead to a surplus of available GPUs, potentially lowering prices for buyers.
The article provides a comprehensive view of the challenges faced by GPU miners post-Ethereum Merge, signaling a paradigm shift in the cryptocurrency mining landscape.
If you have any specific questions or require further information about any aspect mentioned in the article or related to cryptocurrency and blockchain technology, feel free to ask!
