news hardware End of Ethereum mining: will RTX 4000 graphics cards be more affordable?
The recent timing between the announcement of the new RTX 4000 launch and the cessation of graphics card mining on Ethereum raises questions about the future of GPUs. Clearly, many are interested in whether the cessation of mining of the second cryptocurrency will have an impact on the availability of stock and the price of graphics cards. Here are some items that could affect the price of future components.
The Ethereum merger: what impact on RTX 4000 graphics cards?
After Ethereum’s transition to proof-of-stake, many expect to see a direct effect on GPU prices. Without a doubt, The Merge event that allows mining, no longer using graphics cards, but directly with Ethereum, should have a positive effect on the prices of the new RTX 4080 and 4090.
If the update Ethereum merger is good news for the environment and cryptocurrency users, it is not necessarily for mining professionals and enthusiasts.
In this context, those who once used graphics cards to mine Ethereum will have to get rid of essential hardware for their activities in the past. Therefore, it is very likely that the RTX 3rd generation will face a supply shock from older models of graphics cards in the secondary market.
In fact, after the upgrade, crypto miners no longer have to buy machines that produce computing power to mine Ethereum. Thus, these consumers will surely exert less pressure on the demand for the new RTX 4000 graphics cards, which will delight PC gamers.
Although a number of miners began shedding their graphics card stock long before The Merge hit, some prefer to turn to workarounds.
Miners can continue to use their graphics cards to mine other cryptocurrencies
It is important to remember that the new workings of the Ethereum cryptocurrency do not end mining entirely, leaving opportunities for miners to recover. In reality, the cryptocurrency market is full of cryptocurrencies based on proof of work and therefore mining with graphics cards.
Among these are Ethereum forks like Ethereum Classic (ETC). Ethereum Classic works like Ethereum in its early days. In short, the cryptocurrency is based on the original Ethereum network. Therefore, miners can continue to use their graphics cards to mine ETC cryptocurrencies on this alternative network.
In addition to these cryptos taking control of the operation of Ethereum, there are other cryptocurrencies such as Ravencoin or Ergo. Alternatives are not lacking, however, these second options are much less interesting for minors…
Low yield cryptos for miners
At the moment, with the prices of the entire market falling, these cryptos are not profitable. Crypto mining activity incurs a significant amount of fees:
- Hardware (GPU, ASIC)
To cover these fees, miners must sell the cryptocurrencies they have generated. However, when the value of these cryptocurrencies decreases, the maneuver becomes much tighter. As an example, according to PC Mag, mining Ravencoin with an Nvidia RTX 3080 currently brings in just $0.13 to $0.26 per day, not including electricity costs.
With this data, it is clear that mining these alternative cryptocurrencies is not an ideal solution. Therefore, it is a safe bet that miners are more likely to go for the first option in the short term, i.e. selling their hardware.
However, it is important to remember that Bitcoin is also a possible solution. In this sense, the new RTX 4000 will surely be taken by BTC miners. However, as with other cryptocurrencies, the timing is not right yet due to prices, making Bitcoin mining unprofitable.