- Ethereum miners are shifting towards PoW mining to gain profit mining.
After the Merge, mining became harder to make money, so Ethereum miners on a large scale are shifting towards alternative coins because crushing mining is profitable.
On 15th September 2022, the Ethereum blockchain went through a remarkable change, and the working mechanism of the blockchain shifted from PoW(Proof-of-Work) to PoS(Proof-of-stake). The main motto of making this change is to improve efficiency and decrease energy consumption.
The Merge upgrade on the Ethereum network was perhaps the hottest topic across cryptocurrency.
Regardless, the software update dubbed the Merge also meant miners would no longer need to secure the network, so rig operators moved their machines and mining equipment to other PoW blockchains.
Ben Gagnon, chief mining officer at bitcoin miner Bitfarms(BITF), mentioned in his tweet that “Graphics processing units (GPU) mining is dead less than 24 hours after the Merge.” he further added that the three largest operational GPU have very low profit and “the only coins showing profit have no market cap or liquidity.”
The hash rate or computational power required for mining PoW altcoins Like Ravencoin(RVN) and Ethereum Classic(ETC) after an hour of Ethereum Merge took place.
The increased hash rate also increased complications for miners to mine the blocks and get rewards successfully.
Twenty-four hours ago, the reward for mining Ethereum classic block was around 0.0186484 or around 70 cents, but research states that currently, the reward is around ETC 0.00028829. Likewise, 24 hours ago, the reward amount for mining one RVN block was around 30.28478584 or $1.75 per block.
On Thursday, Ethan Vera, Chief operation officer of Luxor Technologies, a mining service provider, mentioned in his tweet, “As suspected, too many ETH miners switched over to ETC.”
Source: https://www.thecoinrepublic.com/2022/09/16/ethereum-miners-are-unable-to-sustain-after-24-hours-of-the-merge/