Ethereum Merge Has It Killed Crypto Mining?

The long-awaited Ethereum Merge ultimately took place on September 15, 2022. The Ethereum blockchain eventually made the switch to proof-of-stake from a proof-of-work consensus method, adopting the same technology as other cryptocurrencies like Solana, Cardano, and Polygon. With this merge Ethereum’s energy use was significantly decreased.

It also claimed crypto mining as a victim.

But has the Merge put an end to cryptocurrency mining? Or are there any opportunities for Ethereum miners to mine different cryptocurrencies?

Why Has Ethereum Merge Stopped Mining?

Prior to “the Merge” the two leading blockchains, Bitcoin and Ethereum, were developing a proof-of-work method. That implied that users may “mine”—lend computing power—to the blockchain in exchange for a reward in order to validate transactions. Users are rewarded with a set amount of cryptocurrency—thousands of dollars each block—for each block that is mined (plus transaction fees). To make mining simpler, some miners formed “pools” where they would combine their computing power and divide the reward of each block, with payouts being distributed according to the amount of processing power each miner contributed.

Pre-Merge Situation

Consumer computers (CPUs) might have initially been used to mine bitcoin, but as time went on, the mining difficulty rose to the point where specialized mining equipment, such as ASICs, was required to make even a marginal profit. But Ethereum’s level of difficulty didn’t really rise. Because of this and the fact that the price of the Ether cryptocurrency surged (at its peak, it reached an all-time high of $4,800), Ethereum was a simple blockchain to mine in and offered incredible rewards to even small-scale miners.

For instance, depending on your electricity bills, you might mine up to $25 a week or $100–$125 per month using an NVIDIA GeForce RTX 3070. You could easily make almost twice that amount using a powerful RTX 3090. Once you’ve earned back your initial investment, it was essentially a hassle-free, reliable income. When the RTX 3000-series GPUs were released in 2020, they were virtually nonexistent on store shelves due to the rush of Ethereum miners who snatched up the few GPUs that did make it to retail.

Post-Merge Thought

Of course, everything—good or bad—has an expiration date. Even while Ethereum mining was profitable, it caused a significant amount of power usage that had a negative impact on the environment. Additionally, because of the network’s instability, transactions may become ridiculously expensive if gas costs rose. In order to go toward proof-of-stake, the Ethereum 2.0 Merge seeks to address both problems. However, it deprives miners of their primary source of revenue in the process.

Alternatives to Ethereum Mining

It would stand to reason that if Ethereum mining stopped, people might go mine anything else. It’s not quite that easy, despite the fact that Ethereum 1.0 miners are working extremely hard to find a solution.

Let’s examine a few of the alternatives that miners are debating.

Blockchains/Crypto-Coins Alternative

First, the obvious choice: try a different approach. There are many cryptocurrencies available, including ZCoin, Ravencoin, and others.

Bitcoin mining is not an option because it is impossible to mine bitcoins with a standard GPU-based rig, especially if you’re a small-scale miner. You will want an ASIC-based rig, which can be pricey, if you want to see an adequate profit. Even if it’s profitable at one time, the price of Bitcoin fluctuates so much that a sudden decrease might radically change the situation.

While the complexity of other cryptocurrencies may not be very great, the most of them lack a real community, which makes them less useful. There is no purpose in mining anything if the reward is worth next to nothing because that is the whole point of mining. With an RTX 3090, the maximum you can earn from Ravencoin is $25 per month, and other cryptocurrencies pay much less. Are you really earning money, or are you merely wasting resources and destroying gear in order to increase your income?

Ethereum Forks

Of course, there are forks in Ethereum. Since the Merge, two specific forks have garnered media attention. The original Ethereum blockchain, called Ethereum Classic (ETC), which predates the Merge by a few years, represents the continuance of the first Ethereum version. Actually, a fork of ETC, Ethereum 1.0 eventually overtook it as the preferred choice.

Additionally, following the Merge, a new fork known as “Ethereum Proof-of-Work” emerged (ETHW).

In order to keep the money coming in, Ethereum might be replaced by either ETC or ETHW. And indeed, each cryptocurrency’s price has risen as a result of media coverage and miners congregating around it. When The Merge happened, ETHW was worth about $5, and as of the time of writing, according to CoinMarketCap, it was worth about $8. On the CoinMarketCap ETC chart, the price of the asset has decreased. Even if they succeed in rising, it is uncertain if they will be able to maintain their pace. Mining something doesn’t ensure its worth will increase. Supply and demand determine price; even if there is a large supply, there will be no market for it.

Chandler Guo, one of the fork’s organizers, reportedly thinks that over the course of the next ten years, the price of ETHW will catch up to that of Ethereum. He has a really positive take on it, while ours is cloudier. We must also keep in mind that many miners relied heavily on the mining industry for their livelihood. The majority of cryptocurrency miners are not in it for the long term and won’t mine something based only on a presumption that its value will rise in ten years. They need cash right away. Furthermore, neither mining ETC nor ETHW is currently lucrative as of the time of writing. At most, you’ll receive a few cents per day.

Crypto Mining is Dead (At Least for Now)

GPU crypto mining is essentially over unless a brand-new, bright replacement for Ethereum emerges that people will genuinely want to use for anything other than just mining. Right now, mining serves basically no function if you have a GPU-based system.

For a few cents, you’ll be breaking hardware and increasing your power bill. If you ask us, it’s not worth it.