WEBVTT

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when we started putting this video together GPU prices were still

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pretty high but the supply situation was starting to get just a little bit better

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so does that mean that NVIDIA and AMD have found a way to make more chips not

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exactly it turns out prices were gently dropping because of miners trying to

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liquidate their stock of gpus in fact over in china used graphics cards were

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practically flooding the market i mean think about how insane it is these days

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to get a 30-70 for 400 bucks you see ethereum is

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currently the most popular cryptocurrency that people are mining on

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graphics cards because unlike bitcoin it's still often profitable to do so

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but similarly to bitcoin the difficulty of mining ether is gradually getting

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harder and harder meaning you get less of a payout for the same amount of

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competitional power your GPU expense this is all leading up to the launch of

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ethereum 2.0 which won't rely on GPU

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mining at all or any mining and yes although we already have had the

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london hard fork which some people believed would cause GPU prices to fall

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we haven't gotten the full ethereum 2.0 release just yet the current ethereum

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uses a consensus mechanism called proof of work where you get rewarded because

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your system expended energy working on a cryptographic problem but ethereum 2.0

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will scrap proof of work entirely and instead move to proof of stake but don't

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worry if you're vegan as there's no red meat involved proof of stake means that

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ethereum rewards won't be decided by how good of a GPU or asic miner you have

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instead you'll need to already have some ether on the network staked on the

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network this is the stake in proof of stake the more ether you have staked the

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higher the probability of being assigned transactions to validate and the higher

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the amount of cryptocurrency you ultimately get paid of course this means

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you'll have to keep some ether on the network instead of just selling it for

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real money but you're just holding it all anyway right

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now this might sound not too great if you don't already have a fair amount of

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ether saved up but you can still grow how much you have over time with proof

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of stake even though the official amount needed to stake is 32 ether around 125 000 us

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at the time we wrote this video you should still be able to join a pool with

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far less crypto on hand similarly how current mining pools work

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we're all in this together but why is ethereum moving to proof of stake well

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one big concern is the environmental impact of the current proof of work

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scheme as you know mining crypto on gpus or asics is an incredibly power hungry

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process and taking the vast majority of the number crunching out of the equation

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no pun intended will go a long way toward a cleaner future for crypto

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another huge advantage is speed getting rid of ethereum's dependence on proof of

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work means transactions can be processed much more quickly instead of its current

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rate of approximately 15 to 30 transactions every second we could

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instead see numbers closer to 2000 to 100 000 transactions per second which

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may give ethereum more appeal as a mainstream blockchain protocol

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throughput will also be helped along by a technique called sharding oops where

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each computer doesn't have to hold a copy of the entire blockchain sharding

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with a d guys but when can we expect ethereum 2.0 to replace the current

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system well reports are indicating that it could happen by late 2021 or early

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2022 so be on the lookout for this if you're a miner or even if you don't care

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at all about crypto and just want to play some games hopefully there will be

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actually an affordable used graphics card under your christmas tree in your

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easter basket as miners offload them i'm assuming they don't just find something

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else to mine maybe this is a good time for us to launch this Linus coin big

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