Chapter 1: The Shifting Landscape of GPU Mining

The recent transition in the cryptocurrency landscape has prompted many miners to halt their acquisitions of new graphics processing units (GPUs) and to offload their older models on the secondary market. This trend has significantly contributed to the plummeting prices of graphics cards, with many models experiencing price reductions of up to 50% since early 2022.

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Section 1.1: Miner Resilience Amidst Change

Despite the upheaval, not all miners are abandoning their operations. In fact, just prior to the transition, Ethereum's hash rate maintained stability, indicating that many miners were still engaged in block generation and rewards. Some have redirected their GPU hash power to alternative cryptocurrencies in search of more consistent profits; however, the unique advantages offered by Ethereum remain unmatched.

Subsection 1.1.1: Environmental Impact Reduction

Following the integration, Ethereum's energy usage is expected to have decreased by an astounding 99.95%. This is particularly encouraging in light of recent studies that showed the entire Ethereum network's carbon footprint was comparable to that of Hong Kong. Vitalik Buterin, the co-founder of Ethereum, recently noted that global energy consumption has dropped by 0.2% since the shift to a proof-of-stake model.

Chapter 2: Profitability Challenges and Market Responses

Ben Gagnon, a Bitcoin miner, observed that within a day of the Merge, GPU mining had become largely ineffective, with only a few coins remaining potentially profitable, and even those lack significant market cap or liquidity.

Ethereum had previously outperformed all other proof-of-work currencies in terms of profit margins. Until the completion of the Ethereum hard fork, GPU miners might find it advantageous to continue mining the old Ethereum coin. Recently, several miners have transitioned to Ethereum Classic (ETC), a cryptocurrency that was created from a hard fork of Ethereum in 2016 due to a community division. However, those hoping for profits comparable to pre-Merge Ethereum are likely to be disappointed.

The current market capitalization of Ethereum stands at approximately $177 billion, while Ethereum Classic's is just above $4.6 billion, leading to a stark contrast in block rewards. Prior to the Merge, block rewards for ETC mining were around $0.0186 (approximately 70 cents), but this figure has now plummeted to about $0.0003 (around 11 cents). Even as one of the remaining proof-of-work alternatives, Ravencoin has experienced a steep decline in payouts, dropping from $1.77 per block to just 5 cents, making it one of the few still viable options.

When factoring in electricity costs, mining either ETC or RVN is generally not profitable unless one has access to abundant solar energy. Otherwise, miners would be wiser to sell off their mining equipment.

As miners conclude their final pre-Merge block rewards, it raises the question of whether a significant sell-off of GPUs will ensue now that numerous cards are available on second-hand platforms. We can anticipate substantial sales in the upcoming weeks as miners come to terms with the diminishing profitability of their rigs. Is there interest in live auctions?

The ongoing issue of stock shortages is pushing GPU prices even higher, with resellers marking them up to unprecedented levels. For instance, an RTX 3070 card, originally priced at £469 or $499, is not uncommon to see listed for double that amount. The most concerning aspect? Consumers are indeed paying these inflated prices.