Hello again, newbie. How are you? That little smile on your face is going to vanish quickly, my friend. I already see you building your ETH farm and booking a hotel in Dubai, but there’s one tiny detail you should know…
Ethereum was launched in 2015 and the good news is that it’s still a decentralized, open-source software platform. Obviously, still based on blockchain and all that jazz. The thing is Ethereum is not just a platform, it’s also a programming language that runs on a blockchain, helping developers run smart contracts and decentralized applications (Dapps), avoiding fraud, downtime, and third-party control.
Meanwhile, Ether is still a cryptocurrency used to run the Ethereum platform. Obviously, it has a ton of uses. It also pays transaction fees and computing costs. And yes, it’s still the second most popular cryptocurrency after God Bitcoin. So, if everything’s going well, what’s the problem? Sit down, let me explain.
🛑 STOP: The reality check you need
I’ll drop a fact and go. Ethereum CAN NO LONGER BE MINED. Repeat: IT-CAN-NO-LONG-ER-BE-MINED. Oops. Just kidding (about leaving, not the mining part). Let’s break it down.
In September 2022 Ethereum finally carried out the long-awaited upgrade: “The Merge”. Sounds big, right? It is. It means “La Fusión” in Spanish. And what did the new toy bring? More like what it took away. This update completely changed the consensus mechanism from Proof of Work (PoW) to Proof of Stake (PoS).
In simple words: bye bye to GPUs burning electricity like in 2017. Now Ethereum works with validators who stake their ETH. Miners got laid off and math puzzles went back to school.
What did The Merge mean for users?
- Goodbye to traditional ETH mining
- 99.95% reduction in network energy consumption
- Miners had to switch to other cryptocurrencies or become validators
- User participation actually increased
The Ethereum merge will reduce energy consumption by 99.9%
The major problem that halted Bitcoin institutional adoption was energy consumption
ETH institutional adoption is about to sky rocket in 2023
— JRNY Crypto (@JRNYcrypto) August 31, 2022
You can always validate on Ethereum instead of mining. You only need 32 ETH, which is like €102,000 today. Easy money, right?
Proof of Stake: Ethereum’s new system
Let’s explain this with apples and oranges. Actually, no, better with stocks. PoS is like being a shareholder in a company where there’s a raffle and tickets are the shares. The more shares you hold (ETH in this case), the higher your chances of being chosen to validate transactions and earn rewards.
The difference is simple:
- PoW (mining): Spend energy solving math puzzles
- PoS (staking): Stake tokens as proof of good behavior
Still here? You still want to mine? Well kid… there’s another kind of mining I was about to mention, but I wanted to test your interest. Let’s talk about a little secret not everyone knows.
Ethereum Classic Mining: The rebel sister you can still mine
If ETH mining’s death crushed you—surprise! It has a sister you can still mine: Ethereum Classic. This blockchain never transitioned, so it’s basically Ethereum from the past.
And you may ask, so what is Ethereum Classic? Basically, Ethereum Classic was born in 2016 when a hacker thought it’d be fun to hack a project called “The DAO” on the Ethereum network. He stole around 3.6 million ETH from The DAO—worth $70 million at the time.
When it came time to respond, the community split in two:
- some wanted a hard fork to return the funds,
- others defended the immutability of the blockchain.
Drama much?
In the end, a hard fork split the chain into two:
- Ethereum (ETH): with funds restored
- Ethereum Classic (ETC): the original chain
Among Ethereum’s memories that Classic kept:
- Original mining algorithm (Ethash)
- Block rewards
- Compatibility with existing mining hardware
Just what you were looking for in this article, right? You’re welcome.
If you like the idea, yes, you can mine Ethereum Classic. You’ve got three mining options (explained for the lazy, because I know you):
- Solo mining: You vs. the world. Romantic, but impractical without an industrial farm.
- Mining pools: The smart choice. Join forces, share power and rewards.
- Cloud mining: Rent mining power. Easier, but less profitable.
If pools sound interesting, the most well-known are 2Miners, Ethermine (now focused on ETC), or F2Pool.
What do you need to mine Ethereum Classic?
Take out the shopping list and let’s get to the point, no detours.
- GPU with at least 4 GB of VRAM (although you already need more because of the DAG*)
- 8 GB of system RAM
- Powerful power supply
- Stable Internet connection
I made you a note because, in case you didn’t know, the DAG is the file that is generated and used in the Ethash mining algorithm (now ETCHash). This is key for ETC mining and its size grows over time. When it grows, it requires more memory (VRAM) on the graphics cards to be able to mine.
If you think about it, it’s not that complicated, at least two elements you must have, I don’t think you’re reading this article with a satellite antenna, you must have Wi-Fi, I’d say.
If in the end you decide to launch, the GPUs that work best and are the most popular usually include NVIDIA or AMD:
- RTX 3060 Ti, RTX 3070, RTX 3080
- RX 6600 XT, RX 6700 XT
A little reality check.
Don’t forget to calculate the cost of electricity and hardware. Do the math before taking the plunge because profitability is not guaranteed.
Did you know you can also “mine” with your mobile?
Let’s call things by their name. Mining, what is pure mining, it is not, but it’s not bad. There are apps that let you earn crypto with your mobile.
Apps like
- Pi Network: Lets you “mine” tokens directly from your mobile to democratize crypto mining.
- Bitdeer: Offers cloud mining services and sales of crypto mining hardware.
These apps offer “cloud mining” systems from the mobile. But watch out, they are usually more marketing than real mining.
These are just a couple of examples of the many that exist. There are also games where you can earn NFTs and exchange or sell them for crypto. The blockchain is a world. Check the blog for more info on all this.
Keep in mind that with mobile mining, you are not going to get rich. Furthermore, these types of apps consume batteries, you are not playing CandyCrush. And of course the profits are minimal, don’t plan your monthly shopping from this.
My advice is to give them a chance. Try them if you want, but do not trust too much and do not expect much from them.
In case none of the above convinces you…
How about you open an account at Bitnovo and buy Ethereum starting at 10 bucks?
Look, I’ll be honest. This whole story of mining is very good to understand how the ecosystem works, but if what you want is to have Ethereum in your wallet, there are much more direct and less complicated ways.
At Bitnovo with 10 bucks that you spend one random day on a lousy pizza you can already buy ETH and even the original one (and if you want to buy Classic you can too).
With this option I suggest you don’t have to worry about hardware, you don’t need more than €10 investment, and you forget about technical complexity. What do you think? If you’re starting, why complicate life. Bitnovo is ideal for these situations.
Furthermore, you are in a regulated, secure environment, you can have your crypto in a noncustodial wallet, and you even have support in Spanish. Anything else? We are not going to give you free ETH, that would be the last straw. Although from time to time we do a giveaway on IG.
Did you know you can buy crypto with cash with Bitnovo?
Bitnovo has agreements with more than 40,000 points of sale, so if you go out you will surely have one a few blocks away. You can also find coupons in:
- Carrefour
- Gas stations
- Convenience stores
The process is very simple.
- First, you buy a coupon with cash.
- You go to the platform and redeem it.
- You receive your ETH and smile.
Basically, it is like buying a gift card at GAME, but for crypto. Amazing, right?
SO, in short, we are like this:
- If you want to mine as a hobby and learn: Ethereum Classic may be an option, but calculate the costs well.
- If you want to invest in Ethereum: Buy it directly at Bitnovo and save yourself the hardware headache.
- If you dream of becoming a millionaire mining from home: Wake up man. Those times ended in 2017.
