As of September it will not be possible to mine Ethereum using GPUs
The Ethereum merger is just around the corner. It is a topic that we have already talked about on more than one occasion, so our regular readers will be quite clear about what this is all about. If you are not one of them, do not worry, basically we are talking about the merger that will take place between the two Ethereum networks, and that will end the possibility of mining it using GPUs.
With this merger we will move from the current GPU-based mining model, which revolves around what is known as “work test”based on a common consensus algorithm that uses complex mathematical calculations (hence the need for so much computing power), to the model of “proof of participation”, which starts from an assessment of the number of cryptocurrencies that each miner has to validate transactions, create new blocks and give rewards.
This change of model will have two very important consequences that can be clearly appreciated even before its application. The first is that the demand for graphics cards for mining is going to drop tremendously. It won’t be enough for GPU cryptocurrency mining to disappear entirelysince there are other cryptos that can continue to be mined with this component, but it is clear that it is going to have a huge impact, and that it should be enough so that we do not have to experience another crisis in the consumer graphics card market general like the one that occurred in late 2020.
On the other hand, this also implies that the carbon footprint associated with Ethereum is going to be greatly reduced. It is not difficult to understand, it will simply be a direct consequence of the demise of large GPU-based mining farmswhose energy consumption is very high. Most likely, those GPUs will end up flooding the used market, and miners will also try to make a buck by selling as many components as they can.
And when will that merger take place? Well, according to the Ethereum Foundation will take place on September 15. The latest information we had also pointed to the month of September, but they went to the 19th of that month. Now we can see that the end date has been slightly advanced, although the truth is that this transition has been making headlines for some time and has actually been experiencing significant delays.
It seems that there is no turning back, and I cannot deny that I am very curious to see How will the industry react? when the merger is complete and we find ourselves before Ethereum 2.0. It is very likely that the prices of graphics cards in the second-hand market will sink, and that the prices of the GeForce RTX 30 and Radeon RX 6000 will drop even more.
