Ethereum Miners , Abandon Ship Less Than, 24 Hours After the Merge.
CoinDesk reports that Ethereum miners are switching to alternative coins, crushing mining profitability.
On September 15, the world’s second-largest blockchain network switched its consensus algorithm to proof-of-stake from proof-of-work. .
According to CoinDesk,
the decision was meant to boost efficiency
and lower energy consumption.
The software update
was dubbed "the Merge.".
Graphics processing units
(GPU) mining is dead less than
24 hours after the Merge, Ben Gagnon, chief mining officer
at bitcoin miner Bitfarms, via Twitter.
The only coins showing profit
have no market cap or liquidity, Ben Gagnon, chief mining officer
at bitcoin miner Bitfarms, via Twitter.
The computing power, or hashrate, used to
mine PoW altcoins like Ethereum classic and
Ravencoin doubled in just hours after the Merge.
At the same time, difficulty also increased,
meaning that miners are less likely
to successfully mine a block.
According to data from Minerstat, the price
or Ethereum Classic tumbled from about
70 cents down to about 11 cents in 24 hours.
As suspected, too many ETH miners switched over to ETC, Ethan Vera, chief operations officer of mining services firm Luxor Technologies, via Twitter.
Even running new generation hardware
at sub 3 cent power is not profitable
on ETC now … That electricity price is
much lower than what households in
the U.S. pay, and even to what industrial
consumers like bitcoin miners pay
in several parts of the country, Ethan Vera, chief operations officer of mining services firm Luxor Technologies, via Twitter