Dear friends and miners,
As you might have read the Ethereum Merge is planned for the 15th of September.
After the merge it will no longer be possible to mine Ethereum. This had always been the eventual plan for Ethereum and should not come as a surprise. This will mark the beginning of a new era in GPU mining.
GPU mining has been around a long time before Ethereum. starting on Bitcoin, then Litecoin, then came Monero, and Ethereum. Now it is time for us to find out what is next. While the future ahead may be uncertain, one thing that we here at Crypto Caverns are confident about is that GPU mining is here to stay. GPUs are the most ubiquitous hardware out there, and thus GPU mining remains the most decentralized way to distribute and secure any cryptocurrency.
While the long term is clear, we appreciate that the merge will likely lead to a lot of volatility in the short term. As I am sure most of you know, crypto mining is a highly competitive industry and the winners are those who can keep their operations running the longest. When times are tough, the miners who can operate at the lowest margins or turn off their rigs survive, while those who have high rent or other payments, high electricity rates and inefficient operations have to shut down and sell off their rigs leaving more coins to the rest of us. While the next few months may be tough for many GPU miners to deal with, as profitability in USD is likely to go down while the market finds equilibrium, we want to assure our customers that we have your backs.
First of all, immediately post merge we will be offering mining on ETC, RVN, and ERGO. All open ETH balances will be paid out within 7 days. Please let us know what coin you would like to mine ASAP. If you do not contact us before the merge, we will automatically switch your rigs over to ETC mining to the same address as your ETH address. Please be aware that if you are mining to an exchange or on any platform other than a paper or hardware wallet that supports ETC you must contact us ASAP because most platforms like these will require you to set-up a separate ETC address. If you have any questions about this do not hesitate to contact us. We cannot guarantee that you will receive your payouts if you do not confirm your mining address.
Secondly, on a positive note, we want to highlight that our customers only pay $0.10/kWh for electricity, maintenance, and our uptime guarantee. This price is well below the average electrical rates of 14.92cents for homes in the US and below industrial rates in much of the world. This means that your rigs are likely to keep being profitable long after most others are not. This fee is collected directly out of your mining rewards, calculated on an hourly basis, without our customers having to make any monthly payments.
We want to assure our customers that if profitability is to drop below 10cents for any period during this transition, we will simply turn your rig off until profitability returns. You will not owe us anything for this time and your rigs will be completely safe and still covered by our unparalleled service package.
We currently charge customers a very low annual rent of $150/rig for the second year of hosting and $300/rig for the third year. In appreciation of your trust and loyalty we will be giving any customer who mines with us through the merge a $50 discount per rig on their second year’s rent.
Finally, if any of our customers are still worried about the merge and would like a buyout on their rigs, please contact us. While GPU prices are currently very low, and we will not be able to offer the most money, we are adding ASICs to our products and can offer a slightly higher trade-in value on your rig if you want to trade it for an ASIC.
Thank you all for listening. Keep mining and together we can build a secure decentralized future!
Jacob van der Stam & your friends and mining partners at Crypto Caverns