Ethereum 2.0... A Miner's Look In The Future - YouTube

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