What realistically to expect from profits after POS?
By - BigDikChikdotCom
If you are referring to the launch of the Proof Of Stake chain then...
POS has been launched Dec 2020.
If you are talking about the merge of the current POW chain to POS (scheduled to happen around Oct 2020 - Q1 2022) and you are asking about mining profits then the answer would be a negative number (depending on your expenses) - ETH mining finishes completely at this stage bud.
Oh long time Oct 1 lol. Wasn't it supposed to be like July or June?
POS will probably kill eth mining as we know it. All the dedicated GPU eth miners will move to other coins, pools will become saturated and those earnings will tank as well. Of course as long as your earnings are enough to cover the power bills (or better) banking coin and sitting on it is a reasonable gamble.
Does the sub not have a pinned FAQ to answer this?
Would anyone even read it before posting the question if there was?
You probably meant EIP-1559. POS means mining stops being possible so mining earnings become exactly zero.
Probably gonna pay my rig to work.
I am assuming you are referring to EIP 1559. While there's no certainty, if you look at the current block reward with these low fees we are seeing in the last few days, I think you could expect something similar to now, without accounting for ETH price or network hashrate.
Edit. EIP 1559 is scheduled for July 14 (unless I missed some news?). I am no ETH guru so please correct me if I'm wrong. Once EIP is implemented, most fees paid on transactions will be burned, except for potential "tips" to miners. Assuming in most cases these will be negligible (this is the pessimistic view) miners will only get the 2 ETH per block, which means profitability should be just a bit lower than now. If more miners keep coming in, hashrate will keep rising and we'll be making less. If the lower profitabilities will not attract as many people anymore, then we might plateau and keep current rates. Because of the burning of fees, Ethereum could lose most of it's inflation (and even become deflationary, depending on congestion) and that would increase its price, which would increase profits. Impossible to say.
Sometimes next year (or later depending on the devs, ETH tends to always postpone stuff), POS will be the only option for Ethereum, which will completely shut down PoW (hardware mining) forever.
The transition to PoS is currently anticipated for the end of *THIS* year or early next year at the latest. They're fairly motivated to make this happen so I would *NOT* expect it to be end of next year.
Sounds like it'll never get passed tbh. I think there's too much money at play
EIP 1559 has bene passed and is coming as is PoS.
You are right, there is a lot of money at stake and THAT is why they ARE coming because the people with all this money don't like paying fees just to trade Ethereum.
they still have to pay fees after eip 1559 though.
It's far less than what gas would be now nd the fees don't benefit miners at all from what I've read.
>Additionally, base fees would be burned or destroyed after collection, and would not be kept by miners.
That part seems especially fucking stupid.
it would have been far less if the gas was still as high as it was a month or two ago when this eip was announced, but at this point the gas is basically at minimum so its not gonna change much.
like you say though they are just gonna start burning whatever gas there is which is kind of dumb imo but whatever..
The tips though essentially replace gas as we know it so we'll see something there and hard to say what.
If we see the eip push value and popularity of eth then you will see more congestion and more tips from traders needing to trade asap.
yeah i guess we'll see how the tips end up working. to me that's basically just gas 2.0 lol. i guess its more of a choice for the user of eth rather than being forced to pay high fee's which is good.
i think the best bet for us miners to make money in these last few months is gonna be a a big push in value like you said.
I would not be so sure tbh. Miners are only a fraction of the end users of ETH, as it stands now ETH will be crushed by competition if it stays on PoW, it's fun for us, but it's inefficient and very limited in scaling. Last month was the most clear example when a bunch of shitcoins like Shiba went viral, I think gas fees picked at 700 gwei, which is an insane and unsustainable amount to pay for most retail users of the Network.
What I mean by this is they we are not really been considered in this, you can put it as switching to PoS is much bigger than us, and it will happen with our without us liking it. The timing of this is another story. For now I think the most important thing on our side is to consider very carefully how much money we are investing into new harware and whether it's worth it on a (potentially) short lived adventure.
While I'm not here to tell anyone what to do with their money, in most cases currently investing in crypto (or ETH) directly could be a less stressful and higher rewards course of action. It's all personal. You gotta DYOR and make the best of it
Personally I don't like people that are angry at Ethereum devs for cutting mining, it's been in the works for years, and it makes total sense for the network, although it will get a bit less secure maybe (but I'm not sure about that either)
What I've not managed to read about is what happens during high congestion times and trader A really wants to get their transaction through ahead of trader B?
Is eip 1559 just going to be first in first served or are gas fees going to work like a tool to promote a trade ahead of another?
Will be interesting to see how it all plays out.
Again, I haven't really understood fully (not sure if anyone actually has) how things will go. But technically yes, the fundamental will not change. There's gonna be a "base fee" which will scale with congestion, plus a "tip" you can pay to miners to get your transaction done faster. So essentially my understanding is that 1559 will kind of stabilize/homogenize the fees, reducing the spikes we've seen recently. But as of now I also understand that it's impossible to know what the "tips" will do. Because it shouldn't, but it might end up being just the same as now during high congestion where only people paying large tips get in quick. I'd love to hear from someone that knows better if this is something that we actually can predict better.
Currently ethereum classic is profitable. So if it stays that way you can switch to that once Ethereum is fully POS.
Right now it's about half as profitable for me but it still gives you something to mine hopefully.
If a decent portion of the ETH hash power moves to ETC it will lose that profitability fairly quickly.
Unless the price also moves up with the added interest in the coin right?
ETC is more or less a dead coin at this point. While it can somewhat mirror the market as a whole for price movement, I personally don't see it increasing in price significantly, and more people mining it won't drive that price up either.
I mean I'm not an expert I just know it's currently profitable and basically every forecast sight has it going up over time.
If I were to mine it after Ethereum goes POS I would sell everything I mine and get something else though. I wouldn't hold that coin.
Yeah and everybody would do the same thing.
If my cheap electricity is always covered I will keep mining and banking coins. I only need to make $30 a month then I’m in profit
After the transition to PoS the cost of electricity literally means nothing since you won't be able to mine Ethereum anymore.