Will It Stop Being Profitable To Mine Cryptocurrencies In 2023 With Ethereum 2.0?
✍️ 3 September, 2022 - 8:09 👤 Editor: Jakub Motyka
- September 15 of this year 2022 is the date marked on the calendar for the arrival of Ethereum 2.0.
- Among other novelties, Ethereum 2.0 will leave behind the Proof of Work (PoW) mining system to make the leap to Proof of Stake (PoS) technology that will no longer require the mining of new Ethereum cryptocurrencies for the network to operate.
- How will this affect the profitability of mining cryptocurrencies in 2022/2023? Will it stop being profitable to mine cryptocurrencies after the arrival of Ethereum 2.0?
Is it profitable to mine cryptocurrencies in 2022? Will it be in 2023? The answer to this question goes hand in hand with the expected update of Ethereum 2.0, which among other novelties will bring with it the arrival of a new system of PoS (Proof of Stake) which will make the cryptocurrency mining of the system obsolete >PoW (Proof of Work) of this altcoin.
The first question to ask, therefore, is the following: will it be profitable to mine Ethereum after the arrival of Ethereum 2.0? In this case, the answer is a resounding no: in fact, it won't make any sense to keep doing it.
The self-destruct system that has been configured for the Proof of Work (PoW) model of Ethereum is designed so that the difficulty of continuing to mine ETH after the September update is so high that there is practically no computer in the world capable of solving the mathematical problems necessary to confirm a trade.
Ethereum Mining Will End In September 2022
With the Ethereum update coming in September, ETH miners will disappear. The transition from the PoW system (mining to confirm transactions on the network) to the PoS (staking a certain amount of ETH to confirm transactions on the network) will kill to Ethereum mining in 2022, both in the case of individual miners, who will have to find a new use for their equipment, and in mining pools, which at least have more flexibility to adapt to this new business model.
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The only way to keep participating in the Ethereum (ETH) network, and get rewards for it, will be to stake ETH for the network. The problem is that a minimum of 32 ETH (more than 60 thousand dollars today) will be required to participate, which will close the door to many individual investors who do not have this necessary amount. to enter the network.
It remains to be seen what solution the Ethereum mining pools offer to users who want to make the leap to this new ETH staking system but do not have the minimum amount necessary to do so. At the moment, what is clear is that the GPUs that were used to mine Ethereum no longer make any sense on the network.
Given that to mine Ethereum it was necessary to use GPU equipment instead of other processing systems, there are not many cryptocurrencies to which you can make the leap in case you want to continue amortizing the investment made in the mining equipment. Ethereum Classic (ETC) or Ravencoin (RVN) are one of the few alternatives, less profitable than ETH, that currently exist to be able to continue mining with GPUs.
You Will Be Able To Continue Mining Other Cryptocurrencies
But the end of Ethereum mining does not mean the end of cryptocurrency mining. In addition to Bitcoin (BTC), there will still be dozens, if not hundreds, of cryptos that can continue to be mined (not with GPUs, though) to obtain benefits with the mathematical contribution made to the network. Only time will tell if other altcoins also make the leap to the Proof of Stake (PoS) system.
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