High ETH gas fees - Why are pool miners not seeing any benefits?

[bitquad]

I keep hearing the high gas fees are so great for miners. I've been mining on Ethermine the past 3 years with over 1 GH/S. My weekly payouts has steadily been going down. So why are they claiming miners are doing so well with high gas fees? I am getting paid in ETH and it is less than 2018 or 2019. So what am I missing? Sure the price of ETH is up but from a nominal ETH standpoint I am getting less and less.

[onecall123]

Miners aren't to blame for high gas as long as it's the users who are too impatient. But, It's also true that, it’s boosting their revenue way more than when Ethereum was at its high. Some pools relatively quite high and sometimes there is no sense at all.

[Mighty_crypt]

Can't say about ethermine pool but some pools are very profitable, for example spark pool and Nicehash gives miner double profits since two days ago, in early february I used to earn 9$ per day but two days ago it's now 17$ to 19$ but today things are slowly going back to the way they are

[bubbagump]

Mighty_crypt's reply shows you why. The people saying that fees are great and that miners are raking it in, are the ones looking at fiat values. It also perfectly illustrates why devs should not care too much about the opinions of miners since most are in it for the immediate profits and probably don't care too much about the long term value/stability/usefulness of a coin. While these fees are great in the short term from a mining perspective, if they aren't addressed quickly, it will kill momentum as the users of the platform migrate to more functional/economical competitors. I think we might be watching the process of the golden goose being killed, judging by the pushback/disinfo against EIP-1559 which is meant to address fee unpredictability.

[Branko]

Many pools keep fees for themselves, and only give block rewards to miners

[bitquad]

Can't say about ethermine pool but some pools are very profitable, for example spark pool and Nicehash gives miner double profits since two days ago, in early february I used to earn 9$ per day but two days ago it's now 17$ to 19$ but today things are slowly going back to the way they are

I did notice that yes. Ethermine did the same thing for me. My daily profit estimate now is over $200 but it is starting to drop again as the transactions cool off. But it won't last and in the end I still get less ETH per week than I did 2 years ago.

[bitquad]

Mighty_crypt's reply shows you why. The people saying that fees are great and that miners are raking it in, are the ones looking at fiat values. It also perfectly illustrates why devs should not care too much about the opinions of miners since most are in it for the immediate profits and probably don't care too much about the long term value/stability/usefulness of a coin. While these fees are great in the short term from a mining perspective, if they aren't addressed quickly, it will kill momentum as the users of the platform migrate to more functional/economical competitors. I think we might be watching the process of the golden goose being killed, judging by the pushback/disinfo against EIP-1559 which is meant to address fee unpredictability.

I have been holding my ETH coins all along and have never converted to USD the past 3 years. And I am getting paid less and less ETH. They make it sound like miners are greedy and getting more and more payout from gas fees. In my case my only payouts are in ETH and I don't convert. I am taking a big risk on Ethereum. I've paid tens of thousands in electrical cost. Add in the mining hardware. I have over $50k invested in Ethereum and have not taken one cent in USD profit. If ETH goes back to $100 it will be a big hole for me.

The big issue is Ethereum's security is coming from the miners. A compromise is proposed where EIP-1559 is accepted by miners as is with one caveat: Add 1 ETH to the block reward increasing it from 2 to 3. Gas fees will be lower and miners will have an incentive to stay mining Ethereum. If miners abandon in droves a 51% attack could occur w/ possible double spending and then Ethereum is dead in the water. It is very foolish of developers to claim they are overpaying for security. Over $200 billion is now at stake why risk it by exposing the security of the network? Bitcoin is paying a great deal for its security. Security is paramount for this to work.

[bitquad]

Many pools keep fees for themselves, and only give block rewards to miners

Ethermine claims that they pay all mining rewards, blocks and fees.

[Stanlo]

Can't say about ethermine pool but some pools are very profitable, for example spark pool and Nicehash gives miner double profits since two days ago, in early february I used to earn 9$ per day but two days ago it's now 17$ to 19$ but today things are slowly going back to the way they are

I did notice that yes. Ethermine did the same thing for me. My daily profit estimate now is over $200 but it is starting to drop again as the transactions cool off. But it won't last and in the end I still get less per week than I did 2 years ago.

Isn't that the way it is with mining? My mining reward is going down too and there is nothing anyone can do about it, let's just keep hoping that this bull season lasted a bit longer so we can get more closer to ROI, I used to earn 4$ before the bullrun and now it's 9$, getting ROI will only take longer once bear market starts

[Stanlo]

Mighty_crypt's reply shows you why. The people saying that fees are great and that miners are raking it in, are the ones looking at fiat values. It also perfectly illustrates why devs should not care too much about the opinions of miners since most are in it for the immediate profits and probably don't care too much about the long term value/stability/usefulness of a coin. While these fees are great in the short term from a mining perspective, if they aren't addressed quickly, it will kill momentum as the users of the platform migrate to more functional/economical competitors. I think we might be watching the process of the golden goose being killed, judging by the pushback/disinfo against EIP-1559 which is meant to address fee unpredictability.

I have been holding my ETH coins all along and have never converted to USD the past 3 years. And I am getting paid less and less ETH. They make it sound like miners are greedy and getting more and more payout from gas fees. In my case my only payouts are in ETH and I don't convert. I am taking a big risk on Ethereum. I've paid tens of thousands in electrical cost. Add in the mining hardware. I have over $50k invested in Ethereum and have not taken one cent in USD profit. If ETH goes back to $100 it will be a big hole for me.

Are you going to sit back and watch ethereum to go back to 100$ ?? Now is the best time to sell your ethereum, where were you when ethereum hit 2k anyway? You've been in mining business for long you should have understand by now that crypto coins won't keep surging forever, selling or switching to usdt is the best way and you could buy back once price is down if you feel like holding ethereum still.

[bitquad]

Mighty_crypt's reply shows you why. The people saying that fees are great and that miners are raking it in, are the ones looking at fiat values. It also perfectly illustrates why devs should not care too much about the opinions of miners since most are in it for the immediate profits and probably don't care too much about the long term value/stability/usefulness of a coin. While these fees are great in the short term from a mining perspective, if they aren't addressed quickly, it will kill momentum as the users of the platform migrate to more functional/economical competitors. I think we might be watching the process of the golden goose being killed, judging by the pushback/disinfo against EIP-1559 which is meant to address fee unpredictability.

I have been holding my ETH coins all along and have never converted to USD the past 3 years. And I am getting paid less and less ETH. They make it sound like miners are greedy and getting more and more payout from gas fees. In my case my only payouts are in ETH and I don't convert. I am taking a big risk on Ethereum. I've paid tens of thousands in electrical cost. Add in the mining hardware. I have over $50k invested in Ethereum and have not taken one cent in USD profit. If ETH goes back to $100 it will be a big hole for me.

Are you going to sit back and watch ethereum to go back to 100$ ?? Now is the best time to sell your ethereum, where were you when ethereum hit 2k anyway? You've been in mining business for long you should have understand by now that crypto coins won't keep surging forever, selling or switching to usdt is the best way and you could buy back once price is down if you feel like holding ethereum still.

I knew we would be getting a 20-30% correction at some point. There usually are 5 or so corrections like that in a bull run. We've had 2 now I think. There might be 3 more for the rest of the year at various price points. Whales caused the flash crash.

https://www.youtube.com/watch?v=Ap22aQ1F02Y

I don't feel like we are at the top and also I don't want to complicate my taxes. When you start selling ETH into other cryptos or USD you incur a tax event. So ETH dropped from 2000 to 1500. At most if I sold all my ETH I could get 1.3 times my holdings. Or I could end up with less if timing was off.

I don't think ETH will go back down to $100. I was being dramatic when I typed that.

They are printing too much fiat all over the world. I have moved some ETH to Binance and will trade a little with it. But my main ETH holdings will remain on Coinbase. And I will cash out some ETH later in the year.