There has been a lot of speculation about when Ethereum will go to Proof Of Stake consensus. Currently, Ethereum is the flagship cryptocurrency for all the miners and is deserved for high mining profitability in the past couple of months, if not years.

Sooner or later, but inevitably, the Ethereum will go to the Proof Of Stake consensus mechanism. What does that mean for miners and NiceHash users?

Joe has covered our position regarding mining in 2022 in this article. In this article, I will focus more on what miners will be mining after Ethereum goes to PoS and what will be the optimal solution.

What will happen with miners after Ethereum 2.0?

At the time of writing the Ethereum network hashrate is around 650 TH/s. That is roughly 68.5 million RTX 3080! This hashrate will be distributed to other algorithms and blockchains.

Where will this hashrate go after Ethereum will not be minable?

It will be distributed to other coins like Ravencoin, Ethereum Classic, Ergo, Conflux, Firo, and others, currently significantly less profitable coins for mining. This will cause higher difficulty, which consequently causes significantly lower profitability than you can experience mining these coins before the ETH 2.0. As more people start mining Ravencoin, the block reward will be split among a higher number of miners than currently. Statistically, you will receive smaller amounts of coins than today with the same hardware. Only if the price of the coins increases, then the mining will be profitable.

Ravencoin halving

Raven will be halving in January 2022, at the same time as ETH might go to PoS. The halving will halve the block reward from 5,000 RVN to 2,500 RVN. Halving will lower the supply of the new coins and should, in theory, increase the price of the coin. If the price increase will be able to compensate for all the new hashpower from Ethereum, then the miners will be able to mine Ravencoin profitably.

What coins to mine after Ethereum goes to PoS?

After Ethereum will go to Proof Of Stake, mining will be divided into multiple smaller or less known coins if you will. Ethereum Classic, Ravencoin, Ergo, Conflux are just a few examples.

Mining coins directly

None of these coins will have such dominance in profitability as Ethereum has. Currently, 90% of GPU miners are most likely mining Ethereum because Ethereum has such high profitability compared to other coins, there is no need to switch miners to other coins. Miners are required to take care of only one wallet - Ethereum wallet.

In above example we can see RTX 3060 Ti profit switching in the past month. RTX 3060 Ti (non-LHR) mined DaggerHashimoto (Ethereum) for 99% of time.

After ETH goes to PoS, there will be multiple coins to mine with similar profitability. The profitability of each coin will fluctuate daily. This means that miners will need to mine different currencies which means that someone will have to take care of multiple wallets, look after what coin is the most profitable on a daily basis, and on top of all of it, someone will have to manually switch between multiple configurations and apply them to the workers.

Not to mention, that the daily most profitable coin might be a small, no-name coin that is only listed on some less trusted exchange. So you would need 4 different exchange accounts to be able to trade the mined coins to a preferred currency.

In the above exampe, we can see that RTX 3060 Ti LHR, was mining DaggerHashimoto for only about 22% of the time in the past month.

Reasons why mining different coins will be hard work (does not apply for NiceHash users):

• You will need to check what coin is the most profitable to mine on a daily basis.
• You will need to change worker configuration on a daily basis.
• You will need to take care of multiple coin wallets.
• You will have trouble exchanging coins to your preferred currency.
• You will need to use different pools.
• With the PPLNS reward system, changing pools frequently is not recommended as the rewards are lower.

Mining with NiceHash

NiceHash on the other hand takes care of all the hard work which would otherwise be needed. NiceHash Miner will automatically switch to the most profitable algorithm and coin. This will save you precious time which you can now spend with your family and friends instead.

Additionally, NiceHash pays mining earnings in Bitcoin, no matter what algorithm or coin you are mining. Also, you receive a Bitcoin wallet when registering at NiceHash. This eliminates the need for taking care of multiple wallets and exchange accounts. On top of all, NiceHash Exchange supports over 50 different cryptocurrencies. You can exchange your mining earnings to any of those with a simple click of a button.

I strongly believe NiceHash will be the optimal mining solution for all small and big miners operating GPU mining farms. Especially, if one has many rigs with many different GPUs. Each GPU has a different hashrate performance and each rig and each GPU will require unique profit switching. NiceHash does that.

Reasons to use Nicehash:

• No need to check if you are mining the most profitable coin, ever.
• No need to change worker configuration, ever.
• No need to take care of multiple wallets, you can use the NiceHash wallet.
• You can exchange the mining earnings to more than 50 currencies on NiceHash Exchange.
• NiceHash uses a Pay-Per-Share reward system. You get paid for each valid contributed share. PPLNS might, in some cases, not reward a miner for their work.
• You can withdraw EUR for free.

Read more about Why you should start mining with NiceHash.

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