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Ethereum set to make GPU mining obsolete, miners aren't happy and plan protests

Rym

 Ethereum is about to slowly do away with GPU mining entirely, starting as early as 2022. Miners will instead hold "stakes" and their value will be bound to what they hold in the network.

 

Miners aren't very happy about this development, some are planning to "fight back" and show their opposition and strength through strikes, protests or similar means.

 

Quote

“Ethereum, the best-suited coin for GPUs, will fork into version 2.0 very soon, making GPUs obsolete,” he said. “A person would be very foolish to invest in a high-end, power-consuming [GPU] for crypto mining today.”

 

As part of the transition to Ethereum 2.0, the network will transition from a Proof-of-Work (PoW) consensus mechanism to Proof-of-Stake (PoS).

 

The former pits the computational power of network participants against each other as they race to crack cryptographic puzzles. Solving one of these puzzles first earns the miner the right to process a “block” of transactions and receive a cryptocurrency award.

 

PoS, however, does away with mining entirely, in favor of a system that rewards participants based on the value they have tied up in the network. In this set-up, there is no need for turbo-charged mining GPUs. 

Quote

On Friday, Ethereum blockchain developers approved a major change to the network that runs the ether cryptocurrency. It is set to overhaul the bitcoin rival's auction system, under which users send tokens to miners to pay for transactions to be completed.

Under the changes, known as EIP-1559, users will send a base transaction fee to the network that would then destroy or "burn" ether tokens, reducing the number of coins in circulation. The changes are scheduled to come into force in the summer, most likely in July.

 

My thoughts:

 

I think what the Ethereum devs are doing is the best way forward to solve mining. Mining imo is very expensive, is very unprofitable for what it does and is toxic to the environment with it's large power consumption. (Profit isn't exclusive to money). It has heavily damaged the pc parts economy and is wreacking havoc on an already weakened economy and market. The complete removal of GPU mining and total restructuring of the system is the very best way forward towards preserving mining as a good way of investing money without damaging multiple markets and the environment. I can see bitcoin following in Ethereum's footsteps soon.

 

 

Sources:

https://www.techradar.com/news/amd-and-nvidia-take-note-gpus-will-soon-become-obsolete-for-crypto-mining

 

https://markets.businessinsider.com/currencies/news/ethereum-ether-eth-miners-protests-changes-destroy-coins-crypto-2021-3-1030172884

 

 

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7 minutes ago, Rym said:

I can see bitcoin following in Ethereum's footsteps soon.

I don't think they can just go and do that, afaik the technology just isn't flexible in that way.

Don't ask to ask, just ask... please 🤨

sudo chmod -R 000 /*

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3 minutes ago, Hyrogenes said:

I still dont understand how mining makes money in 2.0. Can somebody explain how it will work?

From my understanding once it goes to Proof of stake, mining has no application. It will draw interest I think based on how much your staking. Its like what algorand (ALGO) is already doing. I personally hope this happens sooner rather than later, because I want to build a PC in the next year or so, but I will not pay what GPUs are going for right now. If Ethereum and bitcoin can move to a Proof of Stake system, that would shut down at least 45% of large scale mining operations IMO. (I pulled that number out of thin air, I have nothing to support it)

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Not gonna get into the whole "mining is bad because..." topic, but that would certainly flood a whole bunch of GPUs back into the market and probably drive prices back down. So i'm all for it!

 

(Plus: I don't mine myself so i couldn't care less if miners go protesting when they just bought a bunch of overpriced 3090's and need to sell them at a loss)

If someone did not use reason to reach their conclusion in the first place, you cannot use reason to convince them otherwise.

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4 minutes ago, DavidKalinowski said:

From my understanding once it goes to Proof of stake, mining has no application. It will draw interest I think based on how much your staking. Its like what algorand (ALGO) is already doing. I personally hope this happens sooner rather than later, because I want to build a PC in the next year or so, but I will not pay what GPUs are going for right now. If Ethereum and bitcoin can move to a Proof of Stake system, that would shut down at least 45% of large scale mining operations IMO. (I pulled that number out of thin air, I have nothing to support it)

So if ethereum turns into proof of stake how do you get money from it? Just by owning some of it?

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Looks like I'm buying a GPU soon lol. I'm not against mining but it's almost always been the case your better off investing the cost of the cards in the coin.

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6 minutes ago, Hyrogenes said:

So if ethereum turns into proof of stake how do you get money from it? Just by owning some of it?

Basically thats my take on it. I've got algorand on coinbase right now earning aprox 6% APY, its not much, but i've made 9 cents USD this week on it. (I only have 90-100USD in it depending on market fluctuation.) but yea the more I put in, the more I can get back.

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50 minutes ago, Hyrogenes said:

I still dont understand how mining makes money in 2.0. Can somebody explain how it will work?

https://www.investopedia.com/terms/p/proof-stake-pos.asp

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41 minutes ago, Hyrogenes said:

So if ethereum turns into proof of stake how do you get money from it? Just by owning some of it?

The monetary value of ethereum is completely arbitrary anyway, all that's changing is the method by which transactions are verified. And yes, owning ethereum in turn will allow you to "mine" more at a speed dictated by how much you already own and completely detached from your hardware.

Don't ask to ask, just ask... please 🤨

sudo chmod -R 000 /*

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1 hour ago, Hyrogenes said:

So if ethereum turns into proof of stake how do you get money from it? Just by owning some of it?

The current was something like bitcoin is mined is shuffling around numbers in the block header until is meets some difficulty criteria. For instance you can change the nonce value or include different transactions, both change the hash.

 

Proof of stake uses your unspent transactions (coins) to generate the block hash instead by hashing parts of the transaction instead. More value in a transaction lowers the difficulty so the more money you have (the bigger your stake) the more likely you will find the block hash.

Since you have a finite number of transactions there are only a small number of attempts you can make, meaning the power consumption is low.

See here for more info: http://earlz.net/view/2017/07/27/1904/the-missing-explanation-of-proof-of-stake-version

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People act like there are only two crypto currencies. If ETH drops GPU support you simply move to the next coin or fork it and continue as usual 

ƆԀ S₱▓Ɇ▓cs: i7 6ʇɥפᴉƎ00K (4.4ghz), Asus DeLuxe X99A II, GT҉X҉1҉0҉8҉0 Zotac Amp ExTrꍟꎭe),Si6F4Gb D???????r PlatinUm, EVGA G2 Sǝʌǝᘉ5ᙣᙍᖇᓎᙎᗅᖶt, Phanteks Enthoo Primo, 3TB WD Black, 500gb 850 Evo, H100iGeeTeeX, Windows 10, K70 R̸̢̡̭͍͕̱̭̟̩̀̀̃́̃͒̈́̈́͑̑́̆͘͜ͅG̶̦̬͊́B̸͈̝̖͗̈́, G502, HyperX Cloud 2s, Asus MX34. פN∩SW∀S 960 EVO

Just keeping this here as a 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14 minutes ago, BuckGup said:

People act like there are only two crypto currencies. If ETH drops GPU support you simply move to the next coin or fork it and continue as usual 

You can't hardfork Ethereum successfully without going along with the ETH board because there's a built in "ice age". The chain will become useless unless that gets taken away. And they only take it away in the correct fork.

See here: https://docs.ethhub.io/questions-about-ethereum/what-is-the-difficulty-bomb/

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5 minutes ago, rand_althor_cometh said:

You can't hardfork Ethereum successfully without going along with the ETH board because there's a built in "ice age". The chain will become useless unless that gets taken away. And they only take it away in the correct fork.

See here: https://docs.ethhub.io/questions-about-ethereum/what-is-the-difficulty-bomb/

Interesting I did not know this. Vitalik is smart as hell

ƆԀ S₱▓Ɇ▓cs: i7 6ʇɥפᴉƎ00K (4.4ghz), Asus DeLuxe X99A II, GT҉X҉1҉0҉8҉0 Zotac Amp ExTrꍟꎭe),Si6F4Gb D???????r PlatinUm, EVGA G2 Sǝʌǝᘉ5ᙣᙍᖇᓎᙎᗅᖶt, Phanteks Enthoo Primo, 3TB WD Black, 500gb 850 Evo, H100iGeeTeeX, Windows 10, K70 R̸̢̡̭͍͕̱̭̟̩̀̀̃́̃͒̈́̈́͑̑́̆͘͜ͅG̶̦̬͊́B̸͈̝̖͗̈́, G502, HyperX Cloud 2s, Asus MX34. פN∩SW∀S 960 EVO

Just keeping this here as a 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lol I was gonna say, maybe this is how they fix GPU availability...

"Don't fall down the hole!" ~James, 2022

 

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2 hours ago, Hyrogenes said:

So if ethereum turns into proof of stake how do you get money from it? Just by owning some of it?

You have to already have coins in that currency, but more to the point, you also are no longer part of "Every" transaction. So you make a lot less money, assuming you had a sizeable number of coins from which to start with.

 

Once it goes Proof of Stake, the only ones making money will be the big companies that bought or mined millions of dollars of coins and operate their own equipment. The average user who doesn't own/operate a data center, loses out big time. That's why there's all this last minute FOMO that wasn't there during the last cryptocoin crash. If you don't make enough coins now, then you'll basically never make any more in fees for being part of the system.

 

As I've been saying... repeatedly. It is incredibly foolish to get into this in the first place, if you were not equally willing to set the money on fire. The ewaste and energy waste makes this something that half the population will not adopt on that premise alone, nobody over 60 cares about it let alone understands it, nor does anyone else who lives with their parents. So cryptocoins is only significant to people who already deal with cryptocoins, and got in when the computational power was cheap. If you're just getting in the last year, well you really missed the window on this. The time for getting into any particular cryptocoin was 2015. 

 

Most future cryptocoins are going to be cloud services just because they need to be based out of places with cheap energy, as other jurisdictions clampdown on the wasteful energy spend, so you're far more likely to be leasing mining servers based out of iceland than you will be running something in your home.

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So super rich people with huge stakes become more rich quicker than chumps like us with tiny stakes?  Sounds great

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4 minutes ago, Yoinkerman said:

So super rich people with huge stakes become more rich quicker than chumps like us with tiny stakes?  Sounds great

So, don't stake money and hurt the big cats from being able to get rich quicker? 

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Ethereum has been looking at going PoS for a long time and it really is not a surprise to any miner worth their salt. They've tried in the past but failed to get enough take to make it happen. Someone wrote on another similar thread they have managed it this time so it will happen, but I haven't gone to verify that. In a quick search I've been unable to find something resembling a date for that happening. Looks more complicated than switching over at a certain time.

 

It will remain to be seen what happens if/when it does happen. Will GPU miners have another profitable crypto to switch to? Don't expect GPU mining to die overnight, but certainly those in less profitable areas might be first to move out and we might see some easement of supply and pricing.

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12 minutes ago, porina said:

Ethereum has been looking at going PoS for a long time and it really is not a surprise to any miner worth their salt. They've tried in the past but failed to get enough take to make it happen. Someone wrote on another similar thread they have managed it this time so it will happen, but I haven't gone to verify that. In a quick search I've been unable to find something resembling a date for that happening. Looks more complicated than switching over at a certain time.

From OP's sources I think this news is about EIP 1559 from when on it will burn gas instead of rewarding miners with it, not so much moving to PoS. "Soon" has indeed become Ethereum's trademark for that lol.

 

23 minutes ago, Yoinkerman said:

So super rich people with huge stakes become more rich quicker than chumps like us with tiny stakes?  Sounds great

It's not like proof of work is different. The super rich people just buy 5000 GPUs and the chumps maybe get 1.

 

 

It's a shame that profits will decline, but overall this is a good direction to go in. Mining needs to be replaced. The hashrate will just (temporarily) refocus its power elsewhere I think, causing some other coin to grow in value maybe. If that remains profitable little will change I guess, if not, get ready for a GPU tsunami.

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Haha, cool. Good.

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image.png.1d42382ec33ad4c5a3eb51c7a8327e85.png 

 

The rich will get richer, while the poor who can only afford to mine on GPUs and doesn't have millions of Ether to power through their "mining", will just sob in a corner.

 

Just move on to another coin. Make Dogecoin the currency of the internet like Elon has said before.

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57 minutes ago, Tedny said:

so, they will do bitcoin? 

anyway, in the end, it will be same situation as with mining on 3060 - just one coin will be ignored 

Just keep making up fake currency?  No matter how long people keep trying, there is still no real product.  

 

As someone else has said, if you took the money invested into mining and invested it properly you'll be much better off.  

 

 

 

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