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The end of mining with the arrival of Ethereum 2.0, or maybe not?

For those who do not know, among the changes of Ethereum 2.0 is leaving behind the Proof-of-Work (PoW) and go to use Proof-of-Stake (PoS). Abandoning the proof-of-work consensus spells the end of mining with graphics cards. If you have a rig, you are probably wondering what to do when the block validation system changes.

Goodbye to PoW on Ethereum, why is it being abandoned?

Two reasons are usually given for move from proof of work to proof of stake. The first is improve scalability of the Ethereum network. In addition, it is indicated that PoS is a more efficient mechanism, since consumes much less energy. Both reasons are true, but really the most important is the first.

ethereum has presented network congestion on countless occasions. When talking about congestion, it is a process in which the number of incoming transactions is greater than the number of transactions that the network can validate. More or less it is estimated that the Ethereum blockchain can validate about 15 transactions per second.

When this figure is exceeded for a long time, the cost of transaction fees go up enough (come on, raise the GAS Fee). There have been periods, especially during the NFT bubble, of GAS costs exceeding $100 and even $200.

For those who want to send money, exchange tokens or other operations, such as executing a smart contract, these costs are crazy.

Due to this, proof of participation has been chosen, which allows greater scalability. This means that many more transactions can be processed per second and the commissions will plummet. It is estimated that should exceed 50,000 tx/s. As a collateral consequence, the energy consumption necessary to validate the transactions plummeted.

What do I do with my Ethereum mining rig?

Surely you wonder what to do with your mining rig once we go to Ethereum 2.0. Well, you have several options, such as:

  • As you will have with gaming graphics cards, you can clean them and sell them second handAlso, I’m sure it’s very easy.
  • You can choose continue miningbut in this case, Ethereum Classic, GRIN, Ravencoin, ERGO and other cryptocurrencies graphics card friendly

It is possible that you have been looking at this second option and the profitability does not convince you in the least. Let me tell you that you are not taking into account that when the consensus is changed, there will be a chain of movements.

It is estimated that when Ethereum switches to its PoS consensus and shards, the price may go up quite a bit. At the same time, a rise in the price of altcoins that continue to use the PoW consensus is estimated. Among the best valued, for offering fairly solid projects, are Ethereum Classic and ERGO. SERO, Conflux, Metaverse and Ubiq are other interesting projects that could increase in price. (Zolpidem)

For now, a good option is to continue mining Ethereum while you can. There is a possibility that the update will not be released this year as it has been delayed quite a few times. It looks like there’s still quite a bit to work out at the moment, so we’ll just roll with it and when the update comes, we’ll act as we see fit.

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