The cryptocurrency Ethereum recently reached a new low: Ether coins have not been worth as little as they are now since last June. At the same time, the switch to Proof of Work is apparently being delayed again.
The sharp price slumps in cryptocurrencies continue. This morning at 6:00 a.m., Ethereum reached its lowest price since June 2021: An Ether coin was only traded for 1,359.59 euros or 1,430.29 US dollars. For comparison: The cryptocurrency reached its peak in November 2021, when a single coin was worth more than 4,000 euros. Anyone who dared to enter during this period has recorded huge losses since then.
Inflation and Proof of Stake
There are several speculations about the reason for the recent slump. There was uncertainty, for example, due to increased inflation in the USA and also due to Ethereum itself: According to the developers, the conversion from proof of work to Proof of Stake be postponed again because an error was found in an old test program.
While Ethercoin is still high compared to where it was five years ago, last year’s hype seems to be over.
Source: Google Finance
As a reminder: With Proof of Work, new coins are generated by computing power, which is associated with a high energy consumption and requires appropriate hardware. With Proof of Stake, on the other hand, the generation is based on the number of coins deposited.
It is unclear when exactly the changeover will take place, especially since it has already been postponed several times. According to Tim Beiko, an Ethereum employee, there is still a 1 to 10 percent chance of a postponement to 2023.
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Either way, energy consumption by Ethereum miners is likely to be declining at the moment, because due to rising energy prices and falling prices, mining is becoming less and less attractive. Ethereum is particularly interesting for gamers because the cryptocurrency is mainly mined via GPUs and it is likely to have at least exacerbated the shortage of graphics cards in recent years.
Source: via Tom’s hardware
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