• China restrictions cause problems in Bitcoin mining.
• Ethereum mining could end the hardware shortages.
The technology-based currency Ethereum is losing value, just like Bitcoin and another crypto on the market. Although the downtrend in cryptocurrencies is terrible news for miners and investors, it may favor gamers.
The drop in value in crypto is due to the Chinese government’s crackdown on major mining companies. Malaysia increases its security against the decentralized market for alleged tokens thefts. Finally, there are regulations towards Binance that also affect the cryptocurrency market and all its investors.
Although cryptocurrency mining has long been fought with huge processors, it can also be completed with graphics cards. In theory, a video card does the same function as the processor. However, the decryption of the tokens could be slow.
With the shortage of processors for mining BTC or ETH, workers have chosen more viable alternatives. Now Ethereum is being mined with gaming GPUs.
What makes Ethereum mining different from Bitcoin mining?
The most useful video cards on the gaming market were scarce with mining Ethereum versus Bitcoin. With ETH mining, ASICs are not as complex as Bitcoin, so a powerful processor is not required. However, this token farming process tends to require a lot of power from graphics cards.
Many excessive outlays of electricity have been reported due to Bitcoin mining and its excessive energy consumption. But mining Ether requires computer resources and not an absolute power source to function.
Will ETH mining increase?
Bitcoin mining declined due to restrictions in China which made purchasing hardware more difficult. Cryptocurrency miners chose the Ethereum alternative powered by Nvidia’s RTX series to continue their operations. However, ETH mining is not as profitable as BTC from the perspective of its value and scalability of the token.
With this boom in Ethereum mining, the graphics cards prices took off, affecting all models. The RTX 3090 series was one of the few video cards to be sold due to its high cost on the market. This series from Nvidia has an unlimited hash, which drives a better mining process.
But ETH’s mining acceptance is decreasing every day due to its poor price scalability. Despite the restrictions, Bitcoin mining still remains the top gun, retaining its title as the most accepted by interested companies.
The overall crypto mining market is on hiatus until authorities in China make a truce with companies. Many of these mining companies have opened their operations to neighboring countries or have migrated to Iran.