Everybody could mine Ethereum 6 years back with a laptop and become a millionaire if you hodl it till this enormous current USD exchange price. At a time of writing, Ethereum has reached biggest milestone by passing through $1850 mark. Of course, even today you can mine Ethereum with GPUs and ASICs but it takes hefty spending on a mining hardware which skyrocketed in 2021. Most popular and fastest mining RTX 3080 GPU now costs triple the MSRP price.
Gigantic regrets you’ve been hearing from early miners who abandoned mining back in 2014 or 2017 when Eth mining was so easy and cheap, given a difficulty in mining algorithm was lower than nowadays’ difficulty bomb. Main threat for miners is Ethereum Improvement Program (EIP) 1559. Bittersweet ending for Ethereum miners may come abruptly. EIP 1559 will stop giving extra rewards for miners above 2 Eth they mined per block. Currently, miners enjoy 4 to 12 Eth per block just because First Bidder miners pushing the transaction rewards upwards by choosing the highest bidding price to generate the transaction faster than lower bidder. This becomes a major problem for Ethereum Ecosystem to reward the miners and generating surplus Eth amounts. Anyhow, soaring Eth price might motivate you to invest in Ethereum blockchain projects like Decentralized Finance (DeFi) and Proof Of Stake (PoS).
DeFi projects within Eth blockchain took internet by storm in the mid of 2020. The concept there is simple, people just borrow certain amounts of Eth to generate more Eth in other decentralized Crypto exchanges. On the other hand, many pools and exchanges have joined Proof of Stake (PoS) rally. PoS is basically depositing your minimum 32 Eth into Ethereum blockchain to verify other transactions and as a result getting a reward up to 10% interest annually. If an investor got less than 32 Eth, then, PoS pools come to rescue by collecting other people’s Eth together and verify many transactions afterwards getting reward in Eth up to 18%. Isn’t it great for millennial investors?! Ethereum Creator Vitalik Buterin and his associates are planning PoS implementation some time in late 2022 with Proof of Work still going on alongside PoS a little longer. That’s where Crypto mining dies in PoS era of Ethereum blockchain. Therefore, goldrush will be still here in 2021 with soaring mining hardware prices.