The cryptocurrency Ethereum can "turn off" mining as early as the turn of the year

In a Discord channel dedicated to Ethereum, Tim Beiko, the community’s community manager, advises users to invest conservatively and plan for a zero result by the end of 2021. A screenshot of the message has been found on the Reddit forum, where users speculate that it potentially only remains 6-8 months effective breaking of the cryptocurrency with the help of graphics cards.

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Ethereum uses what is called Proof of Work to verify transactions and create new blocks in the chain. Computing power is fundamental to the process, and in Ethereum’s case, computing power is mainly required with high-performance graphics circuits. To achieve profitability need miners many graphics cards, which both strains the consumer market and is very energy-intensive.

It is already known that Ethereum is working towards what they call Eth2, which is being moved from Proof-of-Work to Proof-of-Stake. According to the developers behind Eth2, it will offer better scalability, security and become more sustainable from an environmental perspective.

Unlike proof-of-work, validators don’t need to use significant amounts of computational power because they’re selected at random and aren’t competing. They don’t need to mine blocks; they just need to create blocks when chosen and validate proposed blocks when they’re not. – Ethereum.org

Another shift Proof-of-Stake eliminates the need for hardware required today. This summer, the eip-1559 update is also expected, which will change how pricing works. If the need for hardware disappears and the value changes, many miners can make large investments in graphics cards that no longer pay off. It is likely that they will instead start selling their hardware to reduce losses and that the demand for new graphics cards will fall, which would benefit ordinary enthusiasts.

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One argument against Ethereum’s shift would be relief for the consumer market is that an alternative cryptocurrency could go in and take its place. However, it is worth taking into account that at present there is no alternative cryptocurrency whose market value is comparable and uses the computing power of graphics cards.

Tim Beiko clearly flags that something is going on, and it remains to be seen what consequences it will have.