Ethereum changed algorithm, GPU mining is half dead

One can come across headlines starting with “GPU Mining is Dead” and ending with “Ethereum Mining Is Not Going Away”. On the one hand, excessive optimism claiming that GPU mining is dead to excessive pessimism claiming that basically nothing is changing.

What actually happened: After much anticipation, Ethereum switched from proof-of-work to proof-of-stake, which in short means that this cryptocurrency can no longer be mined on graphics chips. Nothing changes for other cryptocurrencies. Those that could be mined on the GPU last week will most likely be mined on it next week as well. However, the truth is that Ethereum mining has been the most profitable of all GPU-cryptocurrencies, at least for quite some time. GPU mining in general is not dead, it’s just not very profitable at the moment.

On the contrary, pessimistic reports point to the fact that miners currently have hardware in their hands, for which they paid an estimated $15 billion, and which they do not want to part with for nothing. It is true that those who got rid of their hardware after the first wave of cryptomania regretted it at the beginning of the second, and those who got rid of their hardware after the second wave of cryptomania regretted it at the beginning of the third, which is currently ending. Therefore, a group of miners announced their intention to copy the entire Ethereum blockchain with everything and start mining a “new” cryptocurrency called EthereumPoW (ETHW). How it all turns out remains to be seen.

The only certainty at the moment is that the price of the current generation of graphics cards continues to fall, abroad the GeForce RTX 3090 Ti has already reached under $1000 and of course this is far from the end. Even if the price drop slows down in the coming weeks, the value (at least the high-end) of the current generation will drop after the new generation is released in October and November.

AMD and Nvidia have a bit of a problem right now, as GPU sales have been falling faster than both companies anticipated since the spring, leaving them with plenty of chips left in stock. The situation is probably a bit worse for Nvidia, which according to some sources wanted to release the new generation already in July, but as a result of the stock of the current silicon, postponed it to October. AMD, which had planned for an October release, postponed the new line to November. If both companies had grasped the situation better and ended the production of the current generation in time, they could now launch a new generation in all segments and make the hardware in the hands of miners almost worthless low-end. But they can’t afford that in the current situation (they don’t want to have a worthless low-end from their own stock, so the new generation will go on the market later and only the high-end, which is a performance above the existing products, for which there will therefore be room on the market).

So it can be said that GPU mining is neither dead nor alive at the moment – it kind of exists, but it no longer causes harm to ordinary users. If we should learn from previous events, we can expect about two years of calm (=absence of GPU-cryptomania).


Source: Diit.cz by diit.cz.

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