What we expect for miners in 2021: realities and forecasts

For miners, 2020 was full of different events, both good and bad. The cryptocurrency has increased in value, but the size of the ETH DAG file has also increased. In addition, BTC halving took place in 2020, and Ethereum’s transition to PoS was planned for December.

Yes, 2020 has been a busy year, but what can you expect from 2021? What problems can it bring to miners? The answers can be found in this article.

Transition of ETH to PoS

The Ethereum network planned to move to Proof-of-Stake in December 2020, but it did not happen. What does Proof-of-Stake mean? Transformation of the usual mining process into the so-called staking, which does not require special equipment. Of course, this has its advantages, since you can forget about the need to buy and maintain devices, monitor their temperature and condition, and so on. On the other hand, your hardware will become unusable for mining ETH. This is especially frustrating if your farm consists of several dozen or even hundreds of devices – you simply won’t need them (at least in order to participate in ETH staking).

However, it is too early to worry about this. In December 2020, the final transition to PoS did not take place, and this will also not happen in the near future. This means that in 2021 you can still mine Ethereum in the way you are used to. But don’t forget about EIP-1559. This innovation will increase the security of Ethereum and will bring many improvements in general. For example, the waiting time for transaction confirmations will be reduced. But at the same time, EIP-1559 will “burn” BASEFEE, and this will affect the income of miners. Alas, this, too, cannot be influenced in any way – all that remains is to wait for the launch of EIP-1559 and follow the news.

Ethereum DAG file size

Even video cards with 4GB of memory are no longer suitable for mining ETH, all due to the size of its DAG file. At the end of 2020, it has grown to the point where 4GB cards simply cannot mine. What to do about this problem? Option one is to buy new video cards with more memory. But will they have time to pay off? Of course, the transition to PoS will not happen tomorrow, but it should still be considered. Having bought new cards, you may simply not have time to “recoup” their cost.

So it is better to pay attention to option number two – it does not require investments in new cards. Instead, you can start mining another coin. The mining can then be traded on exchanges in exchange for ETH. For example, you can switch to Beam (this coin, like some others, simply does not have a DAG file) or Ethereum Classic (this coin’s DAG file size should reach 3 GB by August 2022, and 4 GB only by September 2025 ).

When choosing a coin, you need to pay attention not only to its value and the size of the DAG file (if any). It is also worth considering how the coin’s price fluctuates and whether it will be easy to sell it. Another important point is the load on video cards. It is also a good idea to find out if the coin project is actively being updated. By answering all these questions, you can make the right decision.

High power consumption

Scary electricity bills have always been a hot issue for miners, and 2020 was no exception. Don’t expect this from 2021 either. Fortunately, there is a reliable way to reduce your electricity consumption.

Using the Hive OS control and monitoring system, you will be able to track energy consumption, and you will always be aware of how much power your devices need. Moreover, thanks to the undervolting function, your GPU rigs will consume less electricity. Another useful feature is the Scheduler. They come in handy if your electricity costs a little less at night than during the day. Considering this fact, during the day you can run the equipment in undervolting mode, and at night – in overclocking mode. And with the Scheduler, you can create a schedule for devices, and they will switch between modes automatically.

Second, install the Hiveon ASIC firmware on your ASICs. It allows you to generally reduce energy consumption. In addition, it has an autotune function that adjusts the frequencies of worn chips. Thanks to autotune, such chips start to consume less electricity, and at the same time their performance increases.

Overheating devices

Possible overheating will also always be an urgent problem for miners. To avoid it, follow these guidelines:

• Track the temperature of your devices so you can take action in time if something happens.
• Ensure optimal room temperature and heat dissipation.
• Keep your graphics cards as dust-free as possible.
• Consider better thermal protection options (paste / gaskets / fans). But remember that self-replacement will void your warranty!

Hashrate theft

When your farm has technicians and administrators, it is worth taking additional security measures. Otherwise, you may face the problem of hashrate theft.

• VNC access must be disabled.
• Creation of flight sheets and wallets for the entire account should be handled by you – only the owner of the farm can change them.
• Your network should be protected from unauthorized external access (remember open ports, port forwarding, etc.).
• The equipment must be protected with a strong password.
• All old / obsolete authentication tokens should be removed.
• Two-factor authentication must be enabled for both you and everyone with access to your farm.

New equipment

2021 also promises new equipment. As for ASICs, Bitmain plans to release new devices 19th seriesand they should be even more effective. Another manufacturer of ASIKs, Canaan Creative, also announced a new model. Expected that AvalonMiner 1246 will be about 30% more efficient than the previous model.

Those miners who prefer GPU rigs can also expect new products. AMD announced a new series with architecture RDNA3release is expected in late 2021. The performance should increase by about 50%. Most likely, Nvidia is also planning something new, but there are no details yet.

What to expect from mining in 2021?

At the moment, mining in 2021 looks promising. Markets are growing and the value of Bitcoin is still over $ 30,000. Ethereum also continues to hold above the $ 1,000 mark.

To take advantage of the current state of the market and earn consistently, follow the recommendations above. Keep track of your devices, keep your farm safe, cut down on electricity consumption and remember that the crypto mining industry is constantly changing – be careful and choose new equipment wisely. Profitable mining!

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