Ethereum 2.0… A Miner’s Look In The Future

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 
is an all-around platform for trading staking and   storing your cryptocurrency they also have visa 
cards which you can get by buying cro tokens and   holding it for some time these cards are accepted 
anywhere that accepts visa and they also come with   benefits based on which tier you get but one 
of the best ways that i found as a miner to   use crypto.com is by utilizing their staking 
platform you can use their staking platform   to put your mining profits in there and then 
earn additional rewards on your mining profits   and it's super easy to get started with it simply 
mine to your crypto.com wallet and then from there   you can stake as much as you want and earn 
interest they have difference taking options   and you can stick with a flexible plan which means 
you can get your money out anytime or you can do   it contract based which earns you more percentage 
so if you want to learn more and you want to see   which options they have for staking please feel 
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

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