Ethereum: Cryptocurrency continues to collapse

Ethereum recently hit a new low: Ether coins haven't been worth as little as they are currently since late June. At the same time, the transition to Proof of Work appears to be being postponed once more.

Jun 14, 2022 - 22:02
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Ethereum: Cryptocurrency continues to collapse

Cryptocurrency price drops are still severe. Ethereum achieved its lowest price since June 2021: an Ether currency was only worth $1,430.29 US dollars.

In comparison, the cryptocurrency peaked in November 2021, with a single coin worth almost 4,000 dollars. Anyone who ventured to enter during this time has suffered massive losses since then.

There are various theories as to why the latest decline occurred. There was uncertainty, for example, because of growing inflation in the United States, as well as Ethereum itself: According to the developers, the transition from Proof of Work to Proof of Stake has been delayed even again due to an issue discovered in an outdated test program.

As a reminder, with Proof of Work, new coins are generated by processing power, which has a large energy consumption and necessitates the use of adequate hardware. In the case of Proof of Stake, the generation is determined by the number of coins deposited.

It is unknown when the transition will occur, especially since it has already been postponed multiple times. Even now, according to Tim Beiko, an Ethereum employee, there is a 1 to 10% chance of a postponement to 2023.

In any case, Ethereum miners' energy consumption is likely to be decreasing at the present, as mining is getting less and less appealing as energy prices rise and fall.

Ethereum is particularly appealing to gamers because it is primarily mined using GPUs and is believed to have aggravated the ongoing shortage of graphics cards.