What Ethereum 2.0 Means for Mining Coins

The crypto community celebrated the release of Ethereum's proof-of-stake in 2022. This switch eliminated competitive ether mining, leaving ether miners holding idle expensive mining machinery. However, the mining community would not be left out—Ethereum hard forks appeared or already existed, which allowed coins (of a different name) to be mined.

Some miners turned to hardforks such as Ethereum Classic, while others found altcoins compatible with their rigs.

Altcoins Can Be Mined

Several Ethereum blockchain forks run proof-of-work validation and are compatible with Ethash ASICs and graphics processing units (GPUs). This can offer those who want to mine an alternative to the old Ethereum.

The blockchain that comes closest to the old ether mining is Ethereum Classic (ETC), which was created in 2016 after an attack on the Ethereum network. This attack caused the developers to roll the blockchain state back. This move was opposed by those who believed a blockchain should never be rolled back, even to reinstate stolen funds—these opponents created a hard fork that is still minable.

What to Mine Instead

Miners who want to continue using their rigs to profit only have one option—they can start mining altcoins, some of which are hard forks.

Here are some altcoins and forks that can be mined using an Ethash ASIC or GPU miner:

• Ethereum Classic (ETC): One of the more popular Ethereum forks, it has good trading volume on many exchanges.
• EthereumPOW (ETHW): ETHW has a decent trading volume and is traded on several exchanges.
  
• Quarkchain (QKC): QKC has a decent trading volume, and the project has ongoing updates.
  
• Canxium (CAU): CAU has some trading volume and a decent market value.

Other Mining Options

Cryptocurrencies are being introduced daily, so many more blockchains may allow mining in the future. Otherwise, the only way to earn on Ethereum is to buy ether and stake it as a validator, join a staking pool, or delegate it to another validator who pays those who delegate their ether.

The Bottom Line

There are some positive signs that mining will continue to be in demand regardless of the success of Ethereum's update to proof-of-stake. While Ethereum mining may be over, there are ways to continue mining other cryptocurrencies using the same equipment.

That said, there are altcoins available to mine, but the profitability of doing so is much less than it was on the old Ethereum blockchain.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info. As of the date this article was written, the author does not own cryptocurrency.