Ethereum Miners Flood Market with Used GPUs and Laptops Due to Software Update and Crackdown


Even though Bitcoin has yet to recover from its historic crisis earlier this year, China’s crackdown on cryptocurrency mining and an upcoming Ethereum cryptocurrency update has resulted in miners throwing their units away. graphics processing and their laptops in the Chinese resale market. Ethereum, which is trading at $ 2,104 (UPDATE AT END), opened to around $ 750 at the start of this year and traded at a record high of $ 4,382 in May. Now, an upcoming “fork” for cryptocurrency, combined with the Chinese government’s new restrictions on cryptocurrency mining, has resulted in miners flooding the market with the computer products used in their operations.

Ethereum miners are unwilling to migrate out of China to continue mining like their Bitcoin counterparts due to upcoming updates

At the moment, Bitcoin and Ethereum are both dubbed in the mining community as ‘proof-of-work’ cryptocurrencies. This requires the miners to use their computing power to solve complex math problems to be rewarded with a coin for the effort.

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However, Ethereum plans to change categories to what is known as “proof of stake” instead. Unlike proof of work, this rewards miners who already have tokens with more tokens. It removes the incentive for heavy calculations, which consume large amounts of power, and improves overall network security as it allows those who already have tokens to make changes to a network.

Migration to proof of stake and China’s crackdown on mining led miners throw away their inventory on the second-hand market. These products are available at significantly lower prices than their brand new counterparts, which is not surprising, reflecting the extreme use of graphics processing units and laptops.

Mining operations often use these products for extended periods of time at their peak frequencies to maximize their computational performance. This ends up degrading the hardware that was originally designed for consumer use.

Surrounded by headwinds, Ethereum is worth less than half of its all-time high price at the start of the year. Image: Coindesk

Tight global supply chains, which prevented gamers from sourcing the latest GPUs from Advanced Micro Devices, Inc (AMD) and NVIDIA Corporation, also led miners to turn to gaming laptops earlier. This year. These laptops are also equipped with GPUs, and laptops are also available in the second-hand market at significant price discounts.

Game consoles sold by Microsoft Corporation and Sony Corporation come equipped with custom GPUs from AMD, and a Ukrainian police raid earlier this month found that even these had not escaped the scrutiny of minors. Police seized 3,800 PlayStation 4 game consoles, as well as 500 GPUs and 50 processors after discovering an illegal mining operation, according to a press release last week. The mining farm was the largest of its nature discovered by the police, and questionable accounting for the use of electricity led to its discovery.

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The next Ethereum update will introduce several changes to the currency. Nicknamed “hard-fork”, it will be the third of its kind manufactured this year. The London hard-fork, expected in August, follows the Istanbul and Berlin hard-forks, aims to reduce transaction costs and change mining difficulty levels.

Ethereum miners receive fees from network users for their services, and the software update will redirect that payment from miners to the network itself. Rather, these “gasoline” charges will be tied to a block and will fluctuate based on demand after the update.

The second change concerns Ethereum 2.0, which is expected next year, making the switch to proof of stake. By making it extremely difficult to mine Ethereum, the developers plan to encourage miners to switch to Ethereum 2.0, and the London Fork will delay this time bomb to ease the transition to Ethereum 2.0.

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