Multiple media outlets are reporting that cryptocurrency mining using GPUs has become ‘unprofitable’ due to the implementation of a large-scale Ethereum ‘unification’ update.
‘No One Is Profitable’: GPU Mining Faces Dark Days After Ethereum Merger | PCMag
GPU Mining No Longer Profitable After Ethereum Merger | Tom’s Hardware
Reasons to be cheerful: ‘GPU mining is dead less than 24 hours after the merger’ | PC player
The Death of GPU Mining? Popular Crypto Profits Go Negative As Market Floods Ethereum Miners | Bitcoinist.com
On Thursday, September 15, 2022, Ethereum, the most profitable mining cryptocurrency, completed a “merger” to phase out GPU-based mining. Ethereum is a blockchain technology that supports virtual currency transactions and payment data.proof of work(PoW), but this merger changed toProof of Stake(PoS). By switching from PoW to PoS, it is possible to significantly reduce the power consumption of the entire Ethereum ecosystem.
What is the large-scale upgrade “The Merge” that reduces Ethereum’s energy consumption by more than 99%? -GIGAZINE
However, tech media PCMag notes that this is bad news for cryptocurrency miners. The reason is that for miners who have made a capital investment in response to PoW, the change to PoS, which is not affected by hardware performance, is an “unprofitable update” for cryptocurrency mining. Philip Rob, who lives in virtual currency mining, told PCMag, “The merger has ruined everything.”“All my mining equipment has gone to idle.”
When the Ethereum merger was announced, virtual currency miners were considering moving from Ethereum mining to mining other virtual currencies such as Ergo and Ravencoin in order to continue earning money with mining using PC graphics cards. However, Ethereum is traded at a very high price of about 195,000 yen per 1 ETH, but Ergo is about 460 yen per 1 ERG and Ravencoin is about 5.9 yen per 1 RVN, so mining them is not profitable. the current situation.
PCMag is actually an NVIDIA graphics cardRTX 3080When mining Ravencoin using , it seems that it became clear that you can only earn about $0.13 (about ¥18.6) to $0.26 (about ¥37.3) per day, “ This is the expensive electricity of California It income before paying the bill, and if you’re paying the electricity bill, you might end up in the red even if you don’t consider the price of the graphics card.”
Another cryptocurrency miner, Blake Teeter, said that he has dozens of GPUs with better mining power than the RTX 3080, but “at my electricity cost, most cryptocurrencies are currently in the red. It will fall in,” he said.
Ben Gagnon, chief mining officer (CMO) at Bitfarms, another bitcoin mining company, said, “Within 24 hours of the Ethereum merger, mining using GPUs died. Electricity costs 6 cents per kwh (about 8.6 yen), and if GPU mining is performed using the RTX 3090, the daily earnings for Ethereum Classic will be a loss of 7 cents (about 10 yen), a loss of 37 cents (about 53 yen), It was a profit of 2 cents (about 2.9 yen), ” he tweeted.
The only coins showing profits have no market cap or liquidity. The profit is not real #btc
— Hashoveride (₿en Gagnon) (@hashoveride)
With virtual currency mining now profitable, there are manyGPU mining community ceases activitydo. It seems that some minors who have given up their activities are selling graphics cards on Facebook and eBay at once. An anonymous virtual currency miner said, “Right now, no one has been able to make a profit from virtual currency mining. I own about 50 GPUs, so I will start selling mining rigs soon. I’m thinking about it,” he told PCMag.
However, some virtual currency miners are hoping for the possibility of reviving GPU mining. Miner Blake Teeter said he plans to sell only older generation GPUs, saying, “I’m cleaning the rigs and keeping mining profitability in mind until some cryptocurrencies improve mining profitability.” “I believe that GPU mining will occupy an important position in the cryptocurrency mining market for at least the next few years.”
In addition, Mr Rob mentions that “virtual currency mining is like playing in the stock market,” and he said that virtual currencies such as Ergo and Ravencoin could soar in price in the future. It can be a huge fortune,” he said.
PCMag, co-founder of cryptocurrency exchange Bonex, expects most cryptocurrency miners to start selling GPUs on a large scale, even if some miners show a wait-and-see stance on GPU sales. “Many people, even companies, take out loans to buy mining equipment,” said Vasil Alyoshin. “There must be a lot of people who have equipment,” he said.
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