Is ETH mining dead? Where have all the former miners gone?

On September 15, 2022, Ethereum officially completed "The Merge", switching from PoW (Mining) to PoS (attestation). At this moment, GPU mining has come to a permanent end.

Why will Mining completely die?

Many people ask: Can I continue to mine ETH with a graphics card? The answer is: No, it is technically completely impossible.

Before the merge, Ethereum relied on miners using GPUs to solve complex mathematical problems to verify transactions. It has now switched to a "staking" model - no longer requiring computing power, but rather how much ETH you have locked to participate in the verification.

How powerful is the effect? Energy consumption directly decreases by 99.95%. This is a huge step forward from an environmental perspective, but for miners, it means their equipment becomes obsolete overnight.

Where is the way out for old miners?

1. Staking Ether (Most Mainstream)

• A minimum investment of 32 ETH is required
• Annual return of approximately 4-7%
• No need to buy mining machines, just a network connection.
• Small amounts can participate using the staking pool, offering greater flexibility.

2. Transition to other PoW coins

• Ethereum Classic (ETC): Compatible with old mining machines using the same Ethash algorithm.
• Ravencoin: GPU-friendly, ASIC-resistant design
• Conflux: An emerging public chain, still rewarding GPU miners.

ETC is currently the most stable choice for former miners due to its mature ecosystem.

3. DeFi Mining + Liquidity Mining

• Put ETH into DeFi protocols to earn returns
• Provide liquidity for trading pairs to earn token rewards
• The risk is higher than staking, but the returns may also be higher.

Staking vs Mining: Data Comparison

| Indicator | Old GPU Mining | Current Staking | |------|---------|--------| | Initial Investment | Graphics Card, Power Supply, Cooling System | 32 ETH or any amount | | Electricity Cost | Up to 30-50% of Total Revenue | Almost Zero | | Payback Period | 1-2 years (needs optimization) | 14-18% annualized return | | Technical Threshold | High (requires software configuration) | Low (UI operation only) |

Old miners generally report: Although the passive income from staking seems low, considering the zero-cost operation, the actual annualized ROI is even higher than during the mining era.

Beware of Cloud Mining Scams

There are still a large number of "cloud mining" platforms on the market that claim to be able to mine ETH directly. These are basically all pits:

❌ Guarantee daily returns ❌ Promising huge profits with 0 promotional fees ❌ Requires a deposit to view the profit proof ❌ Claims to be able to mine Ether but it is technically impossible

Legal cloud mining (if it exists) mainly targets PoW coins like ETC and Conflux, and won't involve you in the ETH mining setup.

Ways to make money with ETH in 2025

• Core: Staking (Stable, Low Threshold, Compliant)
• Advanced: Layer 2 Verification (subsequent upgrades will be available)
• Risk Appetite: DeFi yield farming (high yield but requires choosing the right protocol)
• Conservative option: Hold ETH directly (waiting for Layer 2 scaling to reduce transaction fees and deflationary returns)

The bottom line is: Anyone claiming to mine ETH directly with a GPU is either a scammer or has outdated information. The miner era has ended, but there are actually more ways to make money.