going on everyone welcome to the Rabid Mining YouTube channel we're going to talk about the
ethereum difficulty bomb and it's supposed to be getting delayed looks like around June 30th
I have been following this for the past week and it does jump between June 30th and July 1st so
keep in mind it could be tomorrow at the time of recording this or potentially the next day
it is not set in stone yet until we actually hit this block height right here now this is
originally what I wanted to talk about in terms of profitability and how much eth we're going
to be mining and gaining back because of it but then after looking at the numbers this is also
gonna give turn into a mining after ethereum video because guys these numbers definitely don't look
good if you're up in the air and you're not sure how ethereum mining will be keep watching this
video because it's definitely an eye-opener I don't know how many times I got to try to point
this out but seriously stop buying gpus guys so what does the difficulty bomb do as you can see
here it pretty much does what it says it wants to do it slows down the chain it's an artificial
difficulty that makes the block rewards longer and longer to find now averaging we're around
the 13 second Mark we do fall below 12 seconds at times but usually we're sitting around 13 seconds
here and now you can see we are coming up to that 16 second Mark now the average block time right
now is hanging out at around 16.37 seconds so I put some numbers together just to see how much
in terms of profitability or I guess yielding because profitability comes down to your yields
times whatever the price is so we're going to be looking at our yields and then based on the price
how much money potentially the network itself for the miners is losing so a lot of you guys
like looking at numbers so here's some numbers that's really going to hit you so there's 86
400 seconds in a single day that's 24 hours divided by 13 seconds we find a block every
13 seconds without the difficulty bomb in place that's about 6646. now you can drop this down it
might be averaging around fifty eight hundred six thousand because 13.2 13.5 I'm just going
on a rough basis of 13 seconds even sometimes we hit the 12 that we've seen and now currently
with the difficulty bomb on where we're sitting now at 16 seconds 86 400 seconds per day is 5400
blocks found per day so that puts us at a loss of 1246 blocks that we are not finding that we
were finding before the difficulty bomb did go off so we're finding 1246 blocks per day
with the block reward of about 2f per block here that is 2 492 ethereum that we are finding every
single day and that gets distributed between the miners now at the current price of one thousand
one hundred and eighteen dollars as of right now obviously it's going to be constantly changing at
time recording this video this is the ethereum USD price that is two million seven hundred and
eighty six thousand fifty six dollars per day that ethereum miners are losing now not only is
this affected miners that's what we're talking about your revenue is dropping everything's
going on your yields but obviously the users are being affected as well that is the same amount
of blocks that's 1246 blocks that users using D5 buying selling trading whatever are getting
found each day less so that means that many less transactions are happening on the blockchain which
does increase gas prices now obviously we're not in a really busy time and the bear Market
but if this was to happen at like say a bull run gas fees would be absolutely insane now this is
where things get very very interesting and another huge eye-opener that a lot of people don't really
like to talk about so this is what we're losing in terms of just the difficulty bomb alone like
in reality we're not losing that much on ethereum but when we look at it this way we're losing a lot
quite a bit here but ethereum is still the most profitable thing to mine currently on the majority
of gpus but if we look forward 2.7 million dollars now if we look at this article from a while ago
look at that every other coin added up and this is that higher price margins than what we're
currently sitting at right now these are a lot higher but even with ethereum's low price right
now and looking at this that is still what we lost in the current difficulty bomb is more than all
the other GPU minable coins already put together now there are others who minable coins that aren't
in this list we can't add them in there but you know what they're a fraction of what all these
ones are also Etc here they have it at the 3.1 it did have a fifth name we're down to about 2.56 or
so Ergo recently had a reward the reduction we're down to 51 and it's going to keep dropping every
three months so this is going to be going down but in theory all these havings and everything will
potentially increase the price in the next future bull runs but we still have to wait for that to
happen to see uh flux I think we'll be having a having they just had one not too long ago but they
will be happening again coming into the future but regardless look at all that price so in theory you
are better off taking everyone's hash rate and moving on to what we just lost if there is a coin
right now that had you know potential gains and rewards to minors of what we lost in the ethereum
difficulty bomb all the GPU miners out there we're better off pointing towards this coin Point here
that may be worth what ethereum's difficulty bomb made us lose then Mining and splitting our hash
rate across all of these other coins so that's a really eye-opener that a lot of people got to
realize how the future of gpus is not going to be anywhere near of what we've seen in previous bull
runs unlike the previous crypto Winters where we had ethereum to look forward to into the future
unlike other times when we have come forward into this ethereum is not going to be there for the
next Bull Run and that does make GPU profitability drop quite a bit now it does come down to miners
quitting a lot of miners are definitely going to quit Mining and that's what it's going to take
it's going to take a lot of miners to quit to bring the profits up for everyone who decides
to stay or keeps mind that Hardware so in my mind this is a massive gamble to hope for but in bull
runs we also see prices come up so yes we could see nice gains you know maybe a 5 five times ten
times gain on Ergo flux and these other coins but again depending on the hash rate that people who
stay around things are definitely going to change this is going to be a crypto winter for probably
a good six to eight years it's going to take a few cycles for these other coins to actually
fully mature to make profits kind of decent an Roi on a GPU now we're probably gonna look at
a standard of at least anywhere between two to five years on GPU mining into the future even
with massive gains on these because none of these coins even with you know huge gains can't support
any of that hash rate so things are definitely changing we're gonna have a GPU mining winter for
probably a couple Cycles couple other things to go over is obviously it also determines how many
how much of this hash rate is actually Asics now a lot of the statistics and people are thinking
there's a good 70 chance that majority of this is all gpus now obviously if that swaps around
at 50 50 or maybe a 60 Asic which I highly think is unlikely but who knows there's a chance we
don't know until ethereum is actually gone and we can kind of see how hash rate spreads but you know
best case scenario most of this is A6 and that means that is less gpus to flood the market that
we're in initially anticipating but again I really think majority of this is gpus now one thing
to keep in mind the difficulty bomb is actually being delayed and we have seen hash rate dropping
off the networks because of this and moving to other coins but I have been speaking to a large
a few large Farms you know large Farms by people that have potentially at least 10 gigas 10 to 50
gigahertz type range like that and they have moved off this to try other coins out in this meantime
and they have told me that they are coming back once the bomb is delayed so if you are expecting
you know but a big gain in rewards we may see it at first but I do anticipate we'll probably
be back to you know at least 99 150 potentially back to the one Peta hash mark once the bomb delay
does come in which means we'll probably be right back to where we were difficulty will pick back
up again and then our yields will remain close to where we are So eventually we may not be seeing
more yields but again we don't know we don't know how many miners quit there are a lot of people
selling so we're definitely gonna have to wait and see but keep in mind that the difficulty will most
likely increase again once the difficulty bomb is delayed and then we may not actually see that
much extra in terms of yield than we initially anticipated but we don't know until this all
plays out alright guys so thank you for watching this video just a little quick Insight here on
how I think everything's playing out and why I really don't recommend people to purchase gpus
at this time as good as that price looks guys the GPU prices are definitely once ethereum has gone
gonna drop the even potentially 50 percent less of what we're seeing now there's going to be a huge
influx of cards on the market but the only thing though is it is different this time because we're
not going to have this huge massive profit King coin moving into that next Bull Run so it's kind
of a toss-up right now it may be time to start looking into other ways to mine crypto other than
just gpus thank you for watching guys I'll see you on the next one Rabid Out thank you for watching
my video and if you haven't seen one of these be sure to check them out and if you already seen
them maybe you missed some might have to watch it one more time and if you just let it play in the
background that's all right as well I do try to live stream every weekend as well as every couple
days during the week so be sure to be subscribed so you don't miss that as always have a great day