Ethereum's Switch to PoS Could End GPU Mining as It Currently Controls 97% Of GPU Mining Activity
September 14, 2022 (Investorideas.com Newswire) According to an analysis by CryptoMonday.de, Ethereum's transition to PoS may eliminate GPU mining since it now dominates 97% of GPU mining activity. This upgrade could see the current mining system become redundant.
Speaking on the data, CryptoMonday CEO Jonathan Merry said the following, "The transition of Ethereum from PoW to PoS will significantly impact the GPU mining industry. If GPUs can no longer be used to mine Ethereum, this will reduce demand for these devices. Still, it is unclear what will happen to the prices of these devices, as other crypto assets can be mined using GPUs."
Effects of Proof of Stake
Ethereum's shift to proof-of-stake will see validators stake their ETH tokens to earn rewards. This process is known as staking. Unlike mining, which requires expensive hardware and consumes a lot of electricity, staking is a much more eco-friendly and cost-effective way of maintaining the network.
Since staking requires a lot less energy than mining, the transaction fees will also be lower. This is because miners are rewarded with ETH for their efforts in validating transactions and maintaining the network. As such, they tend to charge higher fees to cover their costs.
Possible Options For Ethereum Miners
Miners of Ethereum would likely have to switch to another coin that uses the same algorithm, which is Ethash. This would not be the end of GPU mining, as GPUs can still be used to mine other coins.
There are a number of coins that use Ethash, and some of these include Ethereum Classic (ETC), Ubiq (UBQ), Metaverse ETP (ETP), and Musicoin (MUSIC). Full story and statistics can be found here: Ethereum's Switch to PoS Could End GPU Mining as It Currently Controls 97% Of GPU Mining Activity
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