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
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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