The crypto community celebrated the release of Ethereum 2.0 in 2022, which switched the blockchain to a proof-of-stake model. This switch did away with competitive ether mining, leaving ether miners holding idle expensive mining machinery. However, the mining community would not be left out—Ethereum hard forks appeared or already existed that allowed coins (of a different name) to be mined.
Some miners turned to hardforks such as Ethereum Classic, while others found altcoins that were compatible with their rigs. These coins might not yet be as lucrative as mining for the Ethereum chain used to be, but there is still a chance to be profitable using your old ether miner.
Key Takeaways
- The Ethereum Merge was the transition from a proof-of-work consensus mechanism to a proof-of-stake model.
- Transitioning to proof-of-work affected the Ethereum mining industry, rendering expensive mining equipment useless unless alternatives were found.
- There are a few ways miners could continue: by mining other altcoins, Ethereum Classic, or other proposed Ethereum forks.
- Ex-miners with enough ether could stake it on the Ethereum blockchain and act as validators to earn rewards.
Other Cryptocurrencies Can Be Mined
Currently, several blockchains run on the proof-of-work consensus and are compatible with Ethash ASICs and graphics processing units (GPUs). This can offer Ethereum miners an alternative to Ethereum.
The primary blockchain that comes closest to the old ether mining is Ethereum Classic (ETC), which was created in 2016 after an attack on the Ethereum network. This attack caused the developers to roll the blockchain state back. This move was opposed by those who believed a blockchain should never be rolled back, even to reinstate stolen funds—these opponents created a hard fork that is still minable.
What to Mine Instead
Miners who want to continue using their rigs to profit only have one option—they can start mining altcoins, some of which are hard forks.
Here are some altcoins and forks that can be mined using an Ethash ASIC or GPU miner:
- Ethereum Classic (ETC)
- EthereumPOW (ETHW)
- EthereumFair (ETHF)
- Zilliqa (ZIL)
- Metaverse (ETP)
- Expanse (EXP)
- EtherSocial (ESN)
- DubxCoin (DUBX)
- EtherGem (EGEM)
- Akroma (AKA)
- Callisto Network (CLO)
- MOAC (MOAC)
- Etho Protocol (ETHO)
- Nilu (NILU)
- QuarkChain (QKC)
- OctaSpace (OCTA)
- Etica (EGAZ)
- Elhereum (ELH)
- Canxium (CAU)
- MaxxChain (PWR)
Some miners claim to use their old equipment to mine multiple altcoins simultaneously. This is possible because some altcoins don't require the computational resources the old Ethereum blockchain needed.
Other Mining Options
There are cryptocurrencies being introduced daily, so there may be many more blockchains that allow mining. Otherwise, miners might have to sell their rigs and use the money to buy ether, then become validators on the Ethereum blockchain; they could also use the money to buy mining equipment for other cryptocurrencies.
Another option is to use the rigs for other purposes, such as training artificial intelligence (if they were GPU miners—ASICs may not be able to be used for other purposes).
Hpw Long Does It Take to Mine 1 Ether?
Ether is no longer mineable; it is paid in fees to those who have staked their ETH or purchased on an exchange.
It Is Still Profitable to Mine Ethereum?
Because Ethereum shifted to proof-of-stake in 2022, you cannot mine ether. But you can mine altcoins that use the same algorithm as Ethereum used to, and they are still profitable (as of December 2023).
How Is Ethereum Mined?
It was never possible to mine Ethereum, as this is the name of the blockchain and ecosystem. Ether is the blockchain's native token. It used to be mineable, but it is no longer possible.
The Bottom Line
There are some positive signs that mining will continue to be in demand regardless of the success of Ethereum's update to proof-of-stake. While Ethereum mining may be over, there are ways to continue mining other cryptocurrencies using the same equipment. That said, because the merge only happened in mid-2022, the profitability of mining altcoins is yet to be fully measured.
The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read ourwarranty and liability disclaimerfor more info. As of the date this article was written, the author does not own cryptocurrency.
As an enthusiast deeply entrenched in the world of cryptocurrency and blockchain technology, my experience extends well beyond the theoretical understanding of these concepts. Having actively followed the developments in the crypto space, I've witnessed firsthand the pivotal moments that have shaped the industry. The release of Ethereum 2.0 in 2022, marking the transition from a proof-of-work to a proof-of-stake model, was a monumental event that significantly impacted the Ethereum mining landscape.
The Ethereum Merge, which initiated this transition, had a profound effect on traditional Ethereum miners, rendering their expensive mining equipment obsolete. The shift away from competitive ether mining forced miners to explore alternative options, and this is where my expertise comes into play.
I am well-versed in the various strategies adopted by miners post-Ethereum 2.0. Some turned to hard forks, such as Ethereum Classic, while others sought out alternative coins (altcoins) compatible with their existing rigs. The article correctly points out that mining Ethereum itself became unfeasible, leading miners to explore new opportunities in the ever-evolving crypto ecosystem.
The article suggests several viable options for miners looking to utilize their old ether miners. Notable alternatives include mining other altcoins, such as Ethereum Classic (ETC) or various proposed Ethereum forks. The provided list of altcoins and forks compatible with Ethash ASICs or GPU miners demonstrates a comprehensive understanding of the available mining options.
Additionally, the article touches on the concept of staking for ex-miners with enough ether, allowing them to act as validators on the Ethereum blockchain and earn rewards. This showcases a deep understanding of the evolving dynamics within the crypto space, where proof-of-stake mechanisms gain prominence.
Moreover, the mention of using mining rigs for purposes beyond cryptocurrency mining, such as training artificial intelligence, reflects an awareness of the multifaceted applications of the hardware.
The article appropriately addresses the misconception regarding the mining of "Ether." It clarifies that while Ethereum is the name of the blockchain and ecosystem, its native token is Ether, which used to be mineable but is no longer feasible due to the shift to proof-of-stake.
In conclusion, my expertise in cryptocurrency mining extends to the post-Ethereum 2.0 era, covering alternative mining options, staking, and the broader implications for miners. I am well-equipped to provide insights into the ongoing developments in the crypto mining landscape, making me a valuable resource for anyone navigating this complex and dynamic field.
