Heading into the bull market, most newbies will look for opportunities in the crypto market, not only through trading, but through other things.
In the previous bull markets, if newbies don’t go into trading, they usually find alternatives in crypto mining, especially around Bitcoin and Ethereum mining.
Sadly there are a lot of scams as some scammers offer them mining services that turn out to be a multi level marketing scheme or just a straight up robbery scam.
Also in this bull run, things have changed for Ethereum, as people cannot mine ETH anymore which will be clarified in this article, so you don’t get scammed regarding services around ETH mining going into the next bull market.
Can You Still Mine Ethereum?
Since The Merge happened in 2022, Ethereum has been changing a lot to its recent Dencun Upgrade that just happened a couple of days ago in March, 2024.
Through The Merge upgrade, Ethereum has significantly changed its whole infrastructure, from only being a monolithic blockchain to a now modular blockchain with multiple layers on it.
Ethereum’s consensus mechanism has also changed from a Proof of Work mechanism to a Proof of Stake mechanism.
This is the key thing to remember as the change occurred, people cannot mine ETH anymore on the Ethereum Blockchain.
With the Proof of Work mechanism, validators on the blockchain essentially mine the crypto by validating transactions, so the validators are called miners.
But, with the Proof of Stake mechanism, validators are called stakers, because they need to stake an amount of crypto before receiving a validator spot to then validate transactions and get a reward for validating those transactions.
Difference between the two lies in the reward aspect, where in the Proof of Work system, validators mine new coins that have not existed yet in the market, whereas with Proof of Stake, validators are rewarded with cryptocurrencies that are already circulating in the market and not minting or mining new supply.
This is why you cannot mine Ethereum anymore since the consensus mechanism has changed and there are no new coins mined into the market anymore.
Other Alternatives
So as a miner or as a person who already bought heavy-high quality CPUs or GPUs and have some capital stored for mining purposes, what should I do?
For starters, if you are in the Ethereum Ecosystem, you can start by being a validator on the Ethereum Blockchain, where you will still get rewards in the amount as you would get with mining, with a little difference.
If you don’t have any hardware set up yet, you can use staking services or just stake your ETH for passive rewards on protocols such as DEXes for liquidity farming purposes or on DAOs.
You can also utilize liquid staking platforms such as Lido DAO who gives out stETH for every ETH you stake so it is as if your ETH is not even locked and you can still use it regularly.
Through liquid staking, you can restake your stETH after you staked your ETH so you receive double compensation even as high as 15% to 20% of your capital per year, according to each platform of course.
But, if you already have a hardware set up or you are a miner that has deemed mining not profitable anymore, you can use your hardware and rent it out as computing resources on decentralized share computing platforms such as io.net, Render Network, Bittensor, and many more.
With the hype of advanced applications especially with the implementations of AI or Artificial Intelligence that require high computing resources, you can rent your hardware out for developers who lack the funds to buy those resources on those platforms mentioned above.
You will get a reward as rent fees from those developers, so even though you are not mining, you can still get a return from your unused hardware.
Overall, there are a lot of alternatives especially in the Ethereum ecosystem, but make sure that you don’t fall for any services or scheme that promotes Ethereum or ETH mining, as mining is non-existent anymore in the Ethereum Blockchain.
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