GPU: bad news for gamers, Ethereum mining won’t disappear right away

It seems like the long-awaited nirvana for gamers, one that is filled to the brim with Affordable GPUswill have to wait a little longer – and may never even happen – as a group of Ethereum miners remain determined to preserve their computationally intensive method of authenticating transactions on the soon-to-be-dead blockchain.

As a reminder, Ethereum goes from an authentication mechanism for proof of work transactions (PoW), where miners expend computing power to earn the right to authenticate incoming transactions, to a mechanism based on proof of acceptance (PoS), where validators block a specific amount of Ethereum in dedicated nodes in order to compete with each other to authenticate transactions and introduce new blocks to the chain.

This transition will not only allow reduce the energy footprint of Ethereum by around 99%, but also to pave the way for a potential deflation of the second largest cryptocurrency in the world, due to a dramatic reduction in its issuance.

The probability of a “Sell the News” type movement is decreasing

However, a group of Ethereum miners adamantly refuse to march towards this PoS-based future. Instead, as soon as the merger is effective, these miners expressed ltheir intention to copy the entire state of the Ethereum blockchain – including all tokens, NFTs, DApps, and liquidity pools – to their hard fork based on PoWunimaginatively dubbed EthereumPoW (ETHW).

Essentially, the existing blockchain liquidity pools will be drained and then converted into ETHW coins. However, since hardly any DApp or stablecoin operator supports ETHW, it is difficult to assess the value proposition of this fork, especially since Ethereum Classic (ETC) already offers an established venue for such miners.

Surprisingly, EthereumPoW has managed to win some strong backers, including TRON founder Justin Sun, as well as cryptocurrency exchanges like Poloniex and BitMEX. Not surprisingly for the first, the majority of miners who want the hard fork are Chinese and do not want to lose their business and especially their investments.

Remember that unlike Ethereum, ETHW does not yet exist. Instead, the coin is currently being traded as an IOU and will be traded with the actual ETHW once the hard fork becomes active post-merger.

EthereumPOW facing its destiny

Even if EthereumPoW manages to pull off the hard fork, it will still have to contend with Ethereum’s built-in difficulty bomb that makes it progressively harder to mine new coins on the blockchain.

So a question arises: why are Ethereum miners going to so much trouble? Well, according to an estimate by Bitpro Consulting, Ethereum miners have deployed around $15 billion in capital to GPUs. It is therefore understandable that some minors are embittered at the idea of ​​losing their concert. But why not just upgrade to Ethereum Classic, which doesn’t have the built-in mining difficulty bomb?

Ethereum vs. EthereumPoW

At the time of writing, ETHW is trading at around $43, up around 30% in the last 24 hours. For comparison, Ethereum is currently trading at $1,633, up around 1.70%.

In the meantime, we advise our readers to temper their expectations of an impending GPU price drop. While theEthereum hashrate has not dropped significantly in recent weeks, which could lead to an influx of GPUs into the market once the merger takes effect, ETHW and Ethereum Classic offer old miners the opportunity to keep their jobs. It is for this reason that we believe the crypto world is heading for a clash in the next few hours, a clash that would determine the fate of mining equipment worth billions of dollars.

As for the gaming community, I think everyone knows which side they will be supportive of. With the arrival of the new RTX 4000s, miners will still have to act quickly in the coming weeks, if they intend to get rid of their GPUs without selling them off drastically.

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GPU: bad news for gamers, Ethereum mining won’t disappear right away

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