Well, I got some news today regarding GPU mining, that I think PC gamers are really going to like if you’re someone who’s been trying to get your hands on a video card and you just haven’t been getting any luck in doing so.
Well, you probably already know that a major factor as to why you can’t get any graphics cards right now has to do with crypto mining and more.
Specifically, Ethereum mining because the cryptocurrency Ethereum is actually the most popular currency to be mined from GPUs, which has led many people to buy just pallets and pallets of these GPUs, which has made it significantly more difficult for regular gamers to try and buy any video cards whatsoever.
You may also know that there’s been a lot of movement in the Ethereum community recently as well with the EIP or Ethereum Improvement Proposals1559 recently being implemented which actually did lead to much higher Ethereum prices, making it more profitable for people to continue to mine in their GPUs.
However, I actually do have some good news for people out there who maybe aren’t interested in mining, for those of you who love to mine on your video cards on the side, well you might actually be rejoicing because you already have a video card and it’s making more money than it has in a long time.
But for those people out there who don’t have a video card, which there are a lot of you out there this is something you definitely don’t want to see is increased profits, you want to see decreased profits and for you people out there well I have some good news.
Because according to a CNBC article, it looks like another Ethereum improvement proposal is on the horizon that should lead to significantly decreased profits when it comes to GPU mining, and eventually it should basically completely phase out GPU mining altogether and lead to proof of stake, which should be coming out sometime after this next EIP which is going to be called EIP 3554.
You might be asking the question well what is EIP 3554 and what does this mean for the GPU market and how is this going to actually lead to decreased profits for mining, so EIP 3554 is being called a difficulty bomb and it should be released in the near future here it looks like sometime around December.
If things don’t get pushed back this will end up detonating and when this does happen it should actually lead to decreased profits.
Here’s why according to the CNBC article they say “it’s a mechanism in Ethereum that makes it exponentially harder to mine said Tim Beiko, the coordinator for Ethereum’s protocol developers. “it’s like we’re actually adding miners to the network which raises the difficulty making it harder for every other miner that’s on the network to actually mine a block.”
The reason why they’re actually going ahead and trying to introduce this EIP 3554 is that they do eventually want to move over to the proof of stake model which completely moves away from mining and in order to try and usher people into that new proof of stake model.
They’re gonna have to try and make it less profitable to mine to try and ease people into it or at least that’s kind of how it was explained in the article.
Now some of you might already actually know about these difficulty bombs as they have happened in the past and they weren’t successful as the developers did end up actually rolling back the clock but this time they promised that there will be no rollback and this is actually going to be a permanent addition.
So eventually when this does end up occurring sometime around December of this year, which does sound like a significant amount of time, but that’s actually much sooner than I originally thought this type of movement would be happening.
So this is actually really good news for those of you out there who are looking to buy a GPU because when this permanent change does go into effect like I mentioned it’s going to make it so much more difficult to mine on your GPUs that it’s very likely you’re going to see a massive flood of GPUs on the second-hand market.
As you know if you have all these GPUs and you’ve already made money off of them and you’re not really making any money anymore well then you might as well try and go ahead and sell them, as that is the main plan for the miners.
They try and buy them make as much money as they possibly can on them and eventually, they sell them to make even more money off those GPUs.
So you should start to see them all over eBay by that point assuming that it doesn’t get pushed back, which hopefully it doesn’t get pushed back because that means that if all this stuff hasn’t been resolved by that point well then by December if it hasn’t been resolved already that means that you know essentially this is going to probably completely resolve the whole GPU crisis.
But there’s one other thing I want to discuss and that’s other cryptocurrencies because even if you know, GPU mining on Ethereum ends up going away.
There are other cryptocurrencies such as raven coin which you can make money on and those will still allow for GPU mining as far as I’m aware and so there may be a lot of people out there who are skeptical and say well yeah this isn’t going to go away, it’s just going to make it so they move to another cryptocurrency.
While that is technically possible I don’t think it’s actually going to work out that well because these other cryptocurrencies don’t have a very large market share.
So if a lot of people from the Ethereum community move over to something like the raven coin, it’s likely going to become a lot less profitable to mine on that coin so even then even if they do all move to a different cryptocurrency.
I think a lot of people are gonna get disillusioned as they’re not gonna be making nearly the amount of money that they were on Ethereum and they’re eventually going to end up just going ahead and selling their cards in the second-hand market or at least that’s what I believe is going to happen.
So overall yes, I don’t think it’s going to be too much longer before all of a sudden you’re gonna have a choice of a lot of different video cards on the second-hand market but that’s just what I think.
Do you think this is a good thing for gamers because it should technically allow you to get your hands on GPUs easier or do you think it’s a bad thing for gamers as it’s gonna make it a lot more difficult to make money on your card on the side.
Let me know your thoughts in the comments below and if you made it to the end of this post be sure to share this post, every time you do so AMD and Nvidia get more stock.