Ethereum has planned to replace PoW with a PoS consensus algorithm in its protocol from its inception. Ethereum Classic has not been among the most profitable cryptocurrencies to mine despite its long history.
All miners on the Ethereum network will have to decide between migrating to another network and selling to abandon that activity. Moving from proof-of-work (PoW) to a proof-of-stake (PoS) consensus algorithm would eradicate ETH mining.
The Ethereum network usually gives better returns to those who mine with graphics processing units (GPU). For that reason, Ether has been the cryptocurrency of choice in that niche for a long time.
Vitalik Buterin always sought to validate transactions with the PoS consensus algorithm but recognizes that the best for Ethereum was to start with PoW. The co-founder of that network admitted that mining had allowed a better distribution of ETH.
Not using PoS as a consensus algorithm from the beginning or not making the transition earlier complicates the process. That situation has led to delays in the progress of the project.
Ether Miners Must Decide between Migrating and Selling
Upon implementation of Serenity, the update to complete the transition from PoW to PoS, miners will have to sell their equipment and stop mining. However, some might see it as an option, depending on the profitability of other coins they can mine with GPU.
The role of profitability in deciding whether or not to continue mining a cryptocurrency is essential. A miner recently commented that he is considering stopping his ETH mining rigs due to the low profitability he achieves.
Many miners see the high cost of electricity and the falling cryptocurrency market as a deadly combination. However, these workers do not stop their activity permanently but wait for profitability to be positive again.
Although the context is different, miners who prefer to abandon the activity benefit, as happened in China. The ban on cryptocurrency mining by the Chinese government led many miners to leave the country. However, others preferred to sell their mining equipment and leave the activity aside.
Options for Ether Miners Choosing to Migrate
The advantages of mining Ether include using graphics cards, which allow migrating to other networks due to their versatility.
Ether is the most profitable cryptocurrency for GPU miners. The cryptocurrency has always led the results due to its profitability, regardless of the graphics processing unit models.
Although Ether is the most profitable GPU minable cryptocurrency, some miners consider stopping their rigs, hoping for higher profits. However, the profitability of that activity grows in places with a cheap electricity service or where miners generate their energy.
Other networks where miners can continue to operate after the transition from Ethereum are Conflux, Sero, Cortex, Zano, and Ravencoin. Older cryptocurrencies like Ethereum Classic and Aeternity are not in the top five for profitability to mine. The drop in the price of those crypto assets in the market may have led to that situation.
By Alexander Salazar
