Now that Ethereum has switched to proof-of-stake, miners look for alternative options. Mining Ethereum Classic becomes a logical option, as it uses the same mining algorithm Ethereum did until recently. The network’s overall hashrate has exploded, although it remains unclear if that growth is sustainable.
Mining Ethereum Classic Gains Momentum
The switch from proof-of-work to proof-of-stake marks a crucial development for the Ethereum network. It is a move to make the network more energy efficient. Ethereum has come under scrutiny recently due to its vast electricity consumption by miners and ecological impact from mining, minting NFTs, airdrops, etc. Under proof-of-stake conditions, all of those processes – except for mining, which is now obsolete – become far more efficient.
It is expected that Ethereum’s energy consumption will decline by over 90%. It does not require expensive hardware to stake on the network. However, users still need a wallet connected to the internet – unless they delegate staking through a service provider. Those users can expect earnings of over 5% per year, which is fairly appealing to most enthusiasts.
It is worth noting the miners who supported Ethereum need to find a new home. Finding a network with a similar mining algorithm is the obvious choice. Ethereum Classic, forked from Ethereum several years ago, welcomes all network support. More miners mean better security and a lower chance of network attacks. So far, most Ethereum miners have begun mining Ethereum Classic, as the latter network’s hashrate has exploded.
ETC Hashrate Grows Exponentially
The switch from Ethereum to mining Ethereum Classic as somewhat expected. Miners cannot afford to miss out on revenue, as most of them invested big money into these mining rigs. A traditional miner will have multiple graphics cards dedicated to mining ETC. Those cards were mainly bought during inflated prices, even though market prices have been cut in half in recent weeks.
Due to those declining GPU prices, ceasing mining is no longer an option. The resale value of the cards would be relatively low compared to their initial cost. Miners always want to break even – at least – and they will need to double down on keeping their operation going at all costs. As such, mining Ethereum Classic – even if for a short while – is the most accessible alternative.
Interestingly, the ETC hashrate has exploded in the past few hours. The network had been stable at roughly 50 terahash per second for months yet now sits at nearly 300 terahash per second. Most of that increased mining power comes from Ethereum miners jumping ship to this network. Moreover, the network mining rate may continue to rise over the coming days, as ETC is an appealing opportunity.
Is Mining Ethereum Classic Profitable?
As we discussed in a previous article, mining cryptocurrency hinges on several factors. The overall hashpower, combined with its power consumption and cost per kWh, creates a tally of whether mining Ethereum Classic is profitable or not. The mining pool fee is also to consider, which can reduce earnings further. Most pools operate on a 1% fee, which isn’t insurmountable.
Depending on the size of one’s mining rig – and the electricity cost – it may not be profitable to mine ETC for some. Thankfully, there are other networks out there, although finding one that offers the same profitability as Ethereum did will be nigh impossible.
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