Ethereum sets a date for the end of GPU mining
Ethereum is in the process of abandoning GPU mining and transitioning from a Proof-of-Work (PoW) model to a Proof-of-Stake (PoS) model. One of the key goals of the model modification is to consume less energy, which may become more vital as its mining becomes unprofitable in important parts of the planet.
If we claim that the transition process is taking a long time, it is because it is taking longer than predicted, yet there appears to be a firm date for The Fusion: September 19, 2022. Ethereum currently employs the Proof of Work methodology, which necessitates the usage of computational power.
This is where we come to several GPUs that have become very popular for mining bitcoin; the more graphics cards with a high hash rate one has, the more cryptocurrency they can end up earning.
This is essentially the dynamic that has made high-end graphics cards a luxury item for years, forcing most gamers and regular users to settle with the mid-low range.
The cryptocurrency craze has reached such a fever pitch that it has become an environmental problem, and Russia's invasion of Ukraine is likely to hasten this transformation given the high prices of energy.
If The Merger occurs, Ethereum nodes will "mint" coins at a defined rate based on how many coins a node holds and how long it has kept them. Instead of using computer power, this will be the new criterion for determining who adds a new block.
The proof of stake model will, or should, put an end to dedicated graphics racks for Ethereum mining, cutting power consumption dramatically. Of course, in order to complete the change, node operators must alter their operations to support the new model.
While the battle between Ukraine and Russia continues and NATO and the European Union retain their policies around the crisis, we will see that the price of energy will remain high, with more alternatives to rise than to reduce.
Ethereum is not immune to this dynamic, having lost 60% of its value since the beginning of the year, a situation that may have been impacted by its loss of profitability.
The downward fall that bitcoins are seeing should allow those with money to get a dedicated graphic at a fair price. True, the high range has never or rarely been the most popular among common users and most gamers, but they will be able to climb a step to achieve a graphic equivalent to what the GTX 1060 and RX 480 were at the time.
Post by Bryan C.
