Ethereum’s merge from Proof-of-Work (PoW) based GPU mining to Proof-of-Stake based consensus mechanism rendered GPU mining inactive within 24 hours.
- The previously second largest PoW blockchain, Ethereum, has finally merged with its Proof-of-Stake chain. Many GPU miners who engaged in Ethereum PoW mining were forced to move to other PoW networks like Ethereum Classic and Raven Coin.
- With current market conditions, increase in block difficulty, and energy costs, many GPU miners struggled to make a profit before the Ethereum merge. However, after the merge, the COO of Luxor, Ethan Vera, tweeted that there are lesser profits earned by GPU miners on other PoW networks. He estimated that about 20% of ETH miners have moved to a new network while others shut down post-Ethereum merge.
- The chief mining officer at Bitfarms, Ben Gagnon, tweeted that GPU mining is dead. He added that the remaining coins showing profit in Proof-of-Work consensus have no market cap or liquidity.
- There is growing competition between miners with smaller potential rewards. According to Minerstat, the Ethereum Classic block rewards fell from 58 cents to a bit above 1 cent within 24 hours. Also, Raven coin network, RVN block rewards fell from $1.77 to about 4 cents within the same period.
- In the end, the block rewards earned by GPU miners on PoW consensus mechanisms are not enough. Operating state-of-the-art mining hardware and the ever-increasing energy costs is no longer enough to turn a profit. The future is quite gloomy for ETH miners.
See Related: Cryptocurrency Mining
