All the way around, everyone is guessing when Ethereum will go to POS consensus, and we know that this will happen sooner or later. As of now, Ethereum is known for high mining profit. But within 2022, Ethereum will undergo a substantial upgrade to alter the network operation.
Ethereum blockchain uses proof of work consensus protocol where computers agree on the transactions at any given time, securing the network from attacks. As mining adds valid blocks to the blockchain, computing power consumes too much electricity.
Core developers of Ethereum are working hard on changing consensus protocol from POW to POS. This will require less electricity for allowing transactions. When this merger takes place, it will kick off Ethereum 2.0.
Let’s discuss other essential things that will help you prepare for mining in future.
What to do for mining after ETH 2.0?
You can go with coins like Ravencoin, Ergo, Conflux and others in future though they are less profitable. More people begin mining other currencies, which means splitting a block reward among more miners than now. Thus you will receive lesser amounts than today. The mining will be profitable only when the price of the coins increases.
The profitability of these coins will be fluctuating, meaning the miners will need to mine different currencies and take care of multiple wallets to look at which coin is profitable. Moreover, switching between different configurations and their application on workers will also be required.
Why your mining rigs should be paid off before ETH 2.0
Make sure all your mining gears are already paid off. Suppose you have spent $1000 buying mining parts and graphic cards, then make sure that the mining rig has made at least $1000 before ETH2.0 rolls around. This way, you do not have any hardware overhead, which means all can be your profit when you mine on your own in future, and you do not have to cope with the cost of your mining gear.
Getting a crypto hardware wallet before ETH2.0 is a smart move
You can store your cryptocurrency on a crypto hardware wallet. This is a safe and secure way to store crypto. As mining profitability might go down after ETH2.0, you might not want to sell the whole crypto and want to hold it and wait for an increase in its value. This you can do with the crypto hardware wallet.
Efficient GPUs are better than a high hash rate graphics card
If you are buying graphics cards for your mining rig, make sure to buy efficient ones rather than high hash rate graphics cards. Try to focus on more hash rate per watt because as mining profits go down, the more hash rate you get each watt will be helpful. If the profit margins are thin, and you pay lots for electricity because your cards are consuming too much electricity, your profit will vanish in no time.
Change the overclock settings on GPUs
Test and tweak to find the settings that give you the best efficiency because those will be different in many cases. Your graphic card might not be most efficient at the highest performance it can provide; it might be the case you lower its performance a little bit but power limit it and get the better efficiency on the graphic card.
Before overclocking, you must consider a few guiding principles. Not all processors can be overclocked easily. It will be helpful if you keep in mind that processors are silicon slabs and electronics pieces. Some can tolerate high operating speeds than others. A balance of heat and speed is obtained by stable overclocks. Your processor gets hotter the more you push it. The integrated fail-safe measures must shut down the power when your system gets too tasty before all the costly components get damaged. You must keep the system cool to make your overclocked PC stable
Lower the power consumption of mining rig
There are various ways to lower the power consumption of your mining rig rather than the GPUs. This way you have to pay less electricity bill and make more profit. Purchase more efficient power supplies and run PSUs at peak efficiency load. Getting the GPU with high hash rate efficiency means a high hash rate per watt consumed. Find good overclock settings. You can change the CPU cooler in a rig for better ventilation and underclock and undervolt CPU to lower power consumption.
Sell GPUs before ETH 2.0
Suppose you have some GPUs that are inefficient, then it is time to sell them because GPU prices are inflated because of chipset crises, and you can get a good profit for weak GPUs right now. These can be profitable for you now, but looking at the future, these cannot cope with the requirement of high efficiency. You will not get what you pay for them. However, you can research before selling your GPUs as you know them better.
Which kind of Electricity contract will be helpful?
Try to shop around for a better electricity rate if possible where you are living. Suppose you lower power cost per kilowatt/hour by 5-10%, which puts you below the threshold for mine profitability. If the profit margins are super thin, the low power cost will add to mining profitability. See if you get a fixed-rate reason for that is with a fixed rate, you at least know where you are standing, you know power cost and your mining profitability.
With fluctuating power costs, mining will be profitable on some days while not being so good on other days, which will be a headache to keep track of. Try to get the lowest possible electricity rates.
Learn how to mine different coins for after ETH2.0
This is a time to learn more about new coins. Set everything up for those coins. Try to find the best overclock settings for your GPUs for those coins. Prepare batch files and execute the mining once ETH 2.0 goes away. The reason is you want less downtime and soon start mining. Take your time now and research different mining coins.