ethereum is going through the lengthy process of abandoning GPU mining and transitioning from a proof-of-work (PoW) model to a proof-of-stake (PoS) model. One of the main purposes of the model change is to consume less energy, which may be becoming urgent as its extraction becomes unprofitable in important areas of the world.
If we say that the transition process is taking a long time, it is because it is taking longer than originally expected, but it seems that finally closing date for The Fusion: September 19, 2022. Currently, Ethereum uses a Proof of Work model that requires computing power. Here we come to some GPUs that have become very popular for cryptocurrency mining, and this means that the more graphics cards with a high hash rate one has in their possession, the more cryptocurrency they can eventually earn. That’s basically the dynamic that made high-end graphics cards luxury items for years, to the point where most gamers and casual users had to settle for the lower mid-range.
Cryptocurrency craze has reached such an extreme that it has become an environmental issue, and Russia’s invasion of Ukraine is likely to ultimately accelerate this transition given the high prices that energy is fetching. After the merge, if it happens at all, Ethereum nodes will “mint” coins at a set rate based on how many coins the node has and how long it has held them.. This will be the new criteria to determine who adds a new block instead of using computing power.
The proof-of-stake model will end, or at least should end, dedicated graphics racks for Ethereum mining, thereby significantly reducing power consumption. To make the transition, node operators must of course update their operations to support the new model.
Ethereum is the second most popular cryptocurrency, surpassed only by Bitcoin, whose value has not stopped falling in recent months, and as the war between Ukraine and Russia continues and NATO and the European Union maintain their policies around the conflict, we will see the price of energy remain high, with more options, how to continue growing rather than declining. Ethereum is not exempt from this dynamic either, which has fallen by 60% since the beginning of this year.a situation that may have been affected by your loss of profitability.
The negative spiral that cryptocurrencies are going through should allow people with money in their pockets to get dedicated graphics at a reasonable price. It’s true that the high range was never or rarely the most popular among regular users and most gamers, but at least they will be able to climb the ladder to get graphics equivalent to what the GTX 1060 and RX 480. /580 were at the time.
