The update to the protocol used by the cryptocurrency Ethereum, carried out last Thursday (15), should come as the best news for gamers, graphics professionals and other users who have suffered from the high price of video cards in recent years. The experts’ idea, almost a week after the historic merger (or The Merge, in English), is that prices should go down and availability go up as mining ceases to be worthwhile.
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The secret of the change, which if confirmed, should be equally historic, is in the numbers. Even with the mass adoption of the Ethereum Classic fork, where mining is still the method of generating coins, the idea is that rising electricity prices and the need for ever higher computing power will make the bill does not close, except in the few countries where energy is extremely cheap.
Ethan Vera, director of operations at Luxor, a company focused on mining software and technologies, believes that only 10% of those who mine cryptocurrencies today will find space in the new reality. In his view, video cards became useless the moment The Merge happened, a movement, albeit focused on Ethereum, ended up hitting the entire market.
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Ben Gagnon, director of mining at Bitfarms, a company focused on this process, made his displeasure clear and said in no uncertain terms that GPU mining “is dead”. In his view, the few currencies that can still show profits from this process are not liquid, which means that any gains are not real.
The only coins showing profit have no marketcap or liquidity. The profit is not real #btc
— Hashoveride (₿en Gagnon) (@hashoveride) September 15, 2022
“GPU mining is dead less than 24 hours after the merger.
Here are the top three GPU networks and current daily profitability with a 3090 GPU and $0.06/kwh:
ETC: -US$ 0.07
XMR: – $0.37
RVN: US$ 0.02
The only currencies that make a profit have no market value or liquidity. Profits are not real.”
The result of this can already be seen on online auction sites, where video cards used by miners are being sold in droves, often at prices well below market prices. In Chinese marketplaces, for example, it can be found for values from US$ 300 (approximately R$ 1,550), while it usually goes for more than US$ 450 (that is, above R$ 2,320) in the common market.
GPU flood is here.
Chinese miners and South Asian cafes now dismantling their mining rigs and putting cards up for auction on livestreams.
3060 Ti’s going for $300-$350 US… pic.twitter.com/kphmIt7vZw
— Hassan Mujtaba (@hms1193) June 21, 2022
“The GPU flood is here. Chinese miners and South Asian cafes are dismantling their miners and putting cards up for auction on live streams. The 3060 Tis are going from $300 to $350…”
The movement would have even started even before The Merge, with many experts pointing out that it was really smart who anticipated it, selling video cards for low prices to those who believed that, after the merger, there would be something left. Proof of this is the considerable drop in the mining rate of Ethereum, which has been showing a low since May this year and, today, is at a historically low level.
As always, we are talking about a highly volatile market, where everything can change in a matter of weeks. That’s what makes many miners still keep their farms up, even if turned off, with an eye on what comes next. Meanwhile, for gamers, this could be the beginning of a market recovery that, a few years ago, was expected.
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