Following the Ethereum Merge, ETH miners may lose their jobs. Meanwhile, in 2022, Ethereum (ETH) miners earned more than Bitcoin (BTC) miners. Despite the catastrophic impacts of the Crypto winter and the rising cost of electricity, miners of both assets have not given up.
According to Arcane Research, ETH mining has generated R182.9 billion in revenue this year, somewhat more than the R166 billion earned by BTC miners during the same period. This trend was also observed last year when BTC mining generated R282.8 billion in income, R16.6 billion less than ETH miners generated.
Prior to this, earnings from BTC mining had progressively outpaced that of ETH mining. The recent change of events can be ascribed to increased interest in ETH as the asset gains traction due to the adaptability of its ecosystem.
Nonetheless, the much-anticipated Ethereum Merge, which would see the Ethereum Mainnet and the Beacon Chain merge, triggering the conversion of the Ethereum network to PoS, threatens the jobs of ETH miners, who earn billions of dollars in revenue every year.
Following the Ethereum Merge, ETH mining will be rendered obsolete, and transaction validation on the network will be carried out by validators, who will be rewarded for their efforts, as is now the case in a proof-of-stake blockchain.
ETH miners could opt to move to BTC mining. However, that would be impossible because BTC mining is done with ASIC miners, whereas ETH miners use GPUs. The issue of compatibility comes up.
The second alternative is to use mining tokens that can be mined with GPUs, such as Ethereum Classic (ETC), which is the second largest GPU-mineable asset, trailing only Ethereum. However, the revenue gained by mining ETC is only a small fraction of what miners get with ETH – roughly 3%.
Following the merge, ETH miners would have the option of obtaining a fraction of what they were earning prior to the merge or selling their GPUs. The mining platform AntPool stated that it had invested R166 billion in ETC because the ETH offshoot asset would continue to be mineable after The Merge.
Chandler Guo, a Chinese miner, recently announced plans to construct an “ETHPoW” forked version of the Ethereum blockchain that would preserve the Proof-of-Work mechanism post-merge as a way to keep mining going. Analysts at BitMex have already predicted that investors will be interested in the forked chain.