The Ethereum update EIP 1559 should appear in July 2021. The consequence: the value of the graphics cards – together with the Ethereum mining profits – goes down the drain. Bad for miners. Gamers, on the other hand, look forward to it.
Ethereum miners are shaking, because the “EIP 1559” update, which will probably come in July 2021, could make the mining wallets much easier. To put it more precisely: with the update, the transaction fees, i.e. the so-called gas fees, are to be significantly reduced – so that the profits from mining will shrink by 50 percent. Is mining still worth it for crypto miners? Quite a few answer “no” and sell their expensive graphics cards (which are necessary for mining Ethereum) on various trading portals for below value. The consequence: graphics card inflation. An RTX 3070 currently costs around 1,100 euros, an RTX 3080 even 1,500 euros. If you have such a card and don’t want to take any risks, you should sell it now, because prices may drop drastically in July. If the scenario occurs, then many Ethereum miners stand there with their pants down and have to sell their imagery significantly cheaper.
What are gas fees?
What actually makes Ethereum mining so profitable? Simple explanation: So far, mining programs determined the transaction fees (gas fees) independently. This will end in July, because the update introduces an algorithmically determined basic fee. This is destroyed by the Ethereum protocol after the transaction and the miners look into the tube, because their computing power is theoretically free. To appease the miners, the EIP 1559 update introduces a tip system – the so-called inclusion fee. If you pay more than just the basic fee, you give the miners some money and in return you can expect your transaction to be completed faster. Nevertheless, the mining community is facing dark times, as they anticipate losses of up to 50 percent.
A chance for gamers?
What might make some people’s soup too salty, plays into the cards of the other: Gamers currently cannot get close to graphics cards, as only very few copies make it to Europe – scalpers buy them ice cold. They hawk their loot at significantly higher prices, for example on eBay classifieds. Especially in countries with high electricity costs, the Ethereum update could ensure that many hobby miners give up their business and sell the graphics cards. This would also put an end to the scalpers’ craft, because the market would regulate itself according to the supply-and-demand principle.