Should you buy an AMD RX6600 for mining after the merge?

[Induna]

The ETH merge is upon us... A lot of questions and opportunities arises...

One of the questions: Should you buy an AMD RX6600 after the ETH merge to mine #Ravencoin $RVN and other coins?

Happy mining!

 

[baasgene]

I'm not clued up at all anymore, but my gut feeling says mining will be pointless now. If all those ether miners suddenly jump on Raven or Ergo then those coins will end up being unprofitable.

If I had a rig I would've sold it by now, but I've been wrong many times in life so who knows.

 

[Induna]

It is true that it will be a blood bath initially, until enough people has been shaken out from mining. This is why I always stress about efficiency of the hardware, as those that have inefficient GPUs and high electrical prices will drop off first.

 

[Intox]

Okay ill bite.

The Hashrate coming off ETH is so enormous that only 10% of the ETH hashrate is enough to make every other POW coin unprofitable.
ETH classic will absorb the ASICS so GPUs will never be profitable there, rest of the coins will be swamped by the remaining.

Even if you use have the most efficient GPU in the retail market that still doesn't compare to the larger mining operations who have access to more efficient GPUs that were never released to the public.
Quote from HUT 8 mining VP

Ennis says that Hut 8 has got “the Ferrari of GPUs.” According to the VP, US tech giant NVIDIA didn't even allow the company to disclose what GPU model they received, because only three customers got it globally.

Then of course comes the power question, Well here's a quote from Hive Block Chain on their plans post merge.

“The company acknowledges the potential Ethereum Merge to Proof of Stake,” Hive said in the update. It noted that it sees a competitive landscape where the GPU miners with the most efficient equipment and lowest cost of electricity will prevail.

Hive mentioned that its Sweden-based Boden facility is one of the largest Ethereum mining sites in the world, with power fixed at approximately $0.03 U.S. dollars per Kilowatt hour. “Hive is well positioned to navigate the market ahead,” the firm said.

So the tiny bit of profits that will come from other POW coins will go directly to the large miners who not only pay extremely low power costs compared to retail, they also have to most efficient hardware.

The simple fact is that the ETH network hosts the majority of DeFI and generated the most revenue for miners, post merge some miners will try the whattomine bingo but I doubt that's going to be worth the trouble.

TLDR : Buying a RX 6600 hoping to mine after the merge doesn't seem like a good idea.

 

[baasgene]

Okay ill bite.

The Hashrate coming off ETH is so enormous that only 10% of the ETH hashrate is enough to make every other POW coin unprofitable.
ETH classic will absorb the ASICS so GPUs will never be profitable there, rest of the coins will be swamped by the remaining.

Even if you use have the most efficient GPU in the retail market that still doesn't compare to the larger mining operations who have access to more efficient GPUs that were never released to the public.
Quote from HUT 8 mining VP


Then of course comes the power question, Well here's a quote from Hive Block Chain on their plans post merge.


So the tiny bit of profits that will come from other POW coins will go directly to the large miners who not only pay extremely low power costs compared to retail, they also have to most efficient hardware.

The simple fact is that the ETH network hosts the majority of DeFI and generated the most revenue for miners, post merge some miners will try the whattomine bingo but I doubt that's going to be worth the trouble.

TLDR : Buying a RX 6600 hoping to mine after the merge doesn't seem like a good idea.

This is the gist of it, I did mention I've been wrong before but I would be highly surprised if it didn't pan out exactly this way.

I don't see profitability for the average joe at all. I expect a land fall of used mining gear hitting the market globally within the next 3 months as the reality hits.

 

[Confucius]

Think it’s a bit too risky to be buying mining equipment right now. Rather wait a few weeks and you may be able to pick it up cheaper if you buying second hand.

At the end of the day, no one knows what it’s going to be like. Many will just go back to using NiceHash and getting btc rewards.

 

[BSOD]

Wait and see if there is an up-and-coming coin after the merge, I sold off all my mining gpu's but kept the mining frame so that if there is a coin, I can start up again. Gpu prices are going to fall big time after the merge.

 

[Sola Scriptura]

mining is dead

 

[Induna]

mining is dead

Absolutely not. Yes, profits are gone, but the same happened in the previous crypto winter, and it will happen again in future cycles.

Eventually mining will find an equilibrium, where coin price action and HR will make it profitable again, but until then, as painful as it sound, a lot of HR needs to drop off the networks.

This will happen in the coming months, when people see their electrical bills, especially those with much more expensive power than SA, like UK, etc.

 

[Jack_Bauer_ZA]

nope. cheap cards for all....

 

[Mano]

Think it’s a bit too risky to be buying mining equipment right now. Rather wait a few weeks and you may be able to pick it up cheaper if you buying second hand.

At the end of the day, no one knows what it’s going to be like. Many will just go back to using NiceHash and getting btc rewards.

I agree, huge price drop coming soon and that's unfortunately the best time to cash in a top GPU