hey everyone and welcome back to another
mining chamber video today i want to talk about ethereum 2.0 and give you guys
some deep insight about the topic and what can potentially happen to gpu mining
i will also be discussing about my plan of action moving forward so let's go ahead
and get into the video right after the intro ethereum 2.0 will it actually be the end of gpu
mining now the short answer is no but let's talk about the what why and when so first what is
ethereum 2.0 as a miner or a crypto head this is important for you to know because even though they
are moving out of proof of work ethereum is still a main player in the cryptocurrency world and
whether you like it or not you are part of that world now ethereum 2.0 is the transition of
ethereum from the proof-of-work consensus protocol to proof-of-stake that transition has
three essential parts to it so let's go ahead and talk about those first you have the beacon chain
the beacon chain is already live and with that proof of staking was introduced to ethereum
so now users can stake their ethereum with a minimum of 32 eth to run a node now this video
is not to explain proof of stake but in short proof of stake works by holding a certain amount
of eath and locking it up in a node and then you get paid incentives for it i will be doing a more
in-depth video of proof of stake in the future but for now i hope you have a good idea of
what proof-of-stake is all about now the second step is the merge the merge is where it fully
moves on from proof-of-work to proof-of-stake that means no more mining with the proof-of-work
hardware which in return can lead to huge profit drops for gpu miners as well as ethereum a6
will be rendered useless and then finally you have the charred chains now the chart chains
is where all the great stuff about ethereum 2.0 exists it reduces the network congestion which
increases transactions per second by splitting the blockchain in smaller packets also known
as sharding in simple english to run a node it basically needs to download the entire blockchain
to have a full ledger of transactions now instead of having to do that it will only download small
parts of the blockchain therefore increasing decentralization scalability and most importantly
drastically reducing the gas fees due to less congestion in the network now that is the what
and what about the why ethereum 2.0 the reason that ethereum 2.0 is moving to proof of stake is
first because it does pave the way to chart chains but that is also possible to implement on proof of
work now other than that there's also the reasons of being environmental friendly and that is
arguable because a lot of mining farms have been moving to renewable energy and that topic
will be covered for another video and other than being environmental friendly it's also good for
investors due to locking up all the ethereum and staking with the combination of burning the gas
fees from the aip 1559 which can ultimately end up being good for the price action but that is not
always necessarily true so whether the price goes up or not it's very speculative at this point now
the gas fees are not fixed by ethereum 2.0 once it reaches the merge stage that is because the charge
chains will not be live until 2022 hopefully so that means even if they choose to stick to proof
of work it will be just fine especially after implementing something similar to charting as well
so what i'm trying to say is that the gas fees are not connected to the consensus protocol whether
it's proof of work or proof of stake miners don't set the gas price neither do the validators or
the nodes instead it automatically goes up when the network is congested you can think of it as
a highway with limited roads and an express lane the more people that use the express lane
the more expensive bill will be getting but in charting you can think of it as having more
than just one express lane now proof of stake has been on ethereum's roadmap since day one so that
means we can't complain about it we knew it will be coming at some point and it has always been
delayed more and more which brings us to the win now there's a couple of ones here but the one
that matters the most to miners is the merge i see this question very very often and that is when
ethereum 2.0 will be happening referring to the merge because ethereum 2.0 is already happening
phase zero went live which is the beacon chain and that enabled proof of stake and now the next step
will be the merge so like i mentioned earlier the merge is where proof of work is no longer a thing
in ethereum now the goal for the merger by vitalik is to go live by the end of 2021 i wish i can
give you assurance that it will happen or not but unfortunately i can't it all depends on the core
devs and whenever they make all the changes that are necessary and test them out and then they can
go live with the changes there has been constant delays here and there so the best practice we can
follow is by assuming that it will roll out by the end of the year and if not then in quarter one of
2022 so do expect the worst so you can prepare for the worst as for the charred chains they are
estimated to come out in 2022.
Ethereum 2.0 is supposed to roll out fully with chargings with
the merge but vitalik decided to rush it after the eip 1559 which if you're not familiar with
then you can check out my video on it which will be linked in the descriptions below now that we
covered what ethereum 2.0 really is let's go over the possible impacts of it once the merge goes
live right after award from this video's sponsor this video is sponsored by crypto.com crypto.com
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free to use the link in the descriptions below and download their app and then from there explore the
options that you have now let's go ahead and get right back into the video the impact of ethereum
2.0 on the mining world will surely be noticed first i want you to keep in mind that everything
i say now is speculative which means it's not a financial advice we will never know what
the future will hold but we can always try to prepare and estimate for the worst now that
being said i also want to give credits to bitsby tripping for providing the knowledge that helped
me with making this video most of the data that i will be going over i learned from him so
if you're not yet subscribed to bitsbytrypin please make sure you do so the link will be in the
descriptions below ethereum currently has a lot of hashrate on its network and once ethereum goes to
proof of stake all of this hash rate needs to go into other different cryptocurrencies which in
return will make their profitability a lot less now the way we can divide the etherium network
hash rate is by gpus and asics based on the data from bits b tripping the asics are estimated
to be around 45 percent or more of that hash rate and since asics are algorithm specific after
ethereum goes to proof of stake these asics need to find another ethash coin to be able to mine
and then for the rest of the network cash rate which is made mostly by gpus we'll be going into
whichever algorithm with the most profitable coin to calculate the impact of this is very hard to
do without critical thinking and modeling which is exactly what bisbee tripping did and he will be
covering it in his videos so make sure you don't miss that out if you want a deep analysis of what
the future holds now until that is out i will be giving you a general idea of how the profits can
potentially change the way i want to deliver this information to you is by giving you an example
of two different mining rigs with before and after ethereum 2.0 potential profits the two
rigs that i will be using in this example will be my six radion 7 build and my rtx 3080s build i
have a video on both of these builds so if you're interested in more information about them then you
can find the links for them in the descriptions below now the reason that i picked these two
is because one is amd and the other is nvidia now this is important because amd cards excel
in memory intensive mining such as etch or etc while nvidia does great all around even with core
intensive algorithms such as kapow so now that you have that in mind let's first talk about a couple
of things you need to know before we compare the amd and nvidia profits for after ethereum 2.0
now the first thing that you should know is that there's a lot of different algorithms other than
eth which is the ethereum algorithm for mining now these other algorithms will not have the same
numbers that you have for ether so for example if you do one rtx 3080 here on whatsomine.com you'll
see that you'll be getting around 91 mega hash which you can be pushing around 100 mega hash if
you overclock properly and then you'll see all these other algorithms will have different numbers
so if you're mining raven coin you will be getting around 39.50 on the kapow algorithm so just keep
that in mind your numbers will look different for other algorithms now other than the different
algorithms the price of the cryptocurrency itself is also a big part into mining profitability so
whether one of the coins that you can mine goes up in price that will also help you a lot in
being more profitable now for the sake of this video since we can't predict the price i'll just
go ahead and use the current prices that we have today and then you can just keep in mind that
if the price goes up then your profitability will also go up with it so the first build
i want to talk about is the six rtx 3080s and they can make around 48 dollars a day mining
ethereum now you can come to automine.com and put whatever electricity price you want and then you
can see how much electricity you'll be paying but for now we'll just talk about the revenue so for
the nvidia cards you have ethereum to be the most profitable and then you also have multiple other
coins that are fairly profitable under nvidia so some of these coins are ergo and then you also
have conflux ravencoin as well as spyro and all these coins are fairly profitable if ethereum
goes away then you can mine one of those coins now that doesn't mean they will be as profitable
as they are now because like i mentioned earlier all the hash rate from ethereum will be going to
all these different coins and will increase their difficulty which means less profitability now
i will give you an example of what the profits will kind of look like later on but before we
do that let's show the amd side of things so for the six radeon sevens they're very similar to
the rtx 3080s but you can see here we have less options to mine comparing to the rtx 3080s so you
have first ergo which is the most profitable coin to mine right now on the radeon sevens and this
coin is also fairly profitable for nvidia cards but with amd cards they perform better in that
algorithm and then you also have etc hash raven coin and mimblewimblecoin as well as beam so you
have five more options other than ethereum so you have five more options other than ethereum and
then there's also dubai coin which recently pumped up in the price and that's why it's in the list
right now but usually you won't be seeing that coin up there because the price went up too high
and it's probably going to be going down very soon so now the revenue for the radeon sevens will
be around 48 dollars as well a day with ethereum and now if we compare both of these the rtx
3080s and the radiant sevens to the future we can expect to see something similar to this
the profitability will drop by at least 50 for all the different cryptocurrencies out there for
gpu mining mainly due to the hash rate of ethereum moving on to these other coins making them harder
to mine so which means is that instead of making around forty eight dollars a day you'll be making
around twenty eight dollars or maybe even fifteen dollars to ten dollars a day rather than forty
eight dollars a day so the profits different is definitely huge and if your electricity is
expensive then this might be very concerning now i hope that this gave you a good idea of what
you can expect in the future or something close to it like i said these numbers are very far-fetched
and it's all based on speculation but either way let me tell you what my plan is and what i'm going
to be doing moving forward so first of all is that i'm not stopping gpu mining anytime soon so i will
be looking out for more gpu deals that i can get for a decent price now i won't be buying anything
for scalper price unless i'm trying to do a review on a gpu and i want to get one as soon as possible
then in that case i will be paying scalper prices but if i'm planning on getting a couple of gpus
for mining then i'll definitely keep my eyes open for some deals now i will be more focused
on nvidia cards because like i mentioned they are more diverse and they can mine different
algorithms better but even if i get a good amd card for a decent price i will be buying it as
well now i will be making a video on top 5 gpus to buy for mining in this month so make sure that you
stay tuned for that but like i said none of this is financial advice this is all just my strategy
in my opinion and one thing you really need to consider is your electricity price now for me my
electricity costs are very cheap so for me i can mine even in the bear market and i'll be fairly
profitable but if you have an electricity cost of more than 20 cent per kilowatt hour then in that
scenario you'll have to be careful and make sure that you're playing this properly so you don't put
yourself in a bad position and the best way to get some good information on what the future holds is
by watching bits be tripping deep analysis video so you should stay tuned for that until it's out
now that wraps up this video i hope that answered your questions and give you a good idea of what
will be happening now that being said i will try to keep you guys updated whenever ethereum
2.0 has an actual deadline for when it will be happening with the merge and i will be posting
on that on the channel as well as on instagram so make sure that you follow mining chamber on there
if you're not following it yet thank you guys so much for watching this video if you enjoyed it
make sure to leave a thumbs up and if you have any questions or anything that i messed up on
please let me know in the comments below and if you're new here make sure to subscribe thank you
guys again and i hope you have a wonderful day you
