Ethereum Miner's Gamble

 The question many miners are asking is if the Ethereum network successfully merges, where will they go when they can no longer mine on Ethereum.


The event that is being awaited by the blockchain community is the consolidation of the Ethereum (ETH) network. Tim Beiko, the developer of Ethereum, announced on GitHub that the merger is expected to happen mid-September. CNBC calls it one of the most important events in crypto history.

Specifically, the Ethereum network from the proof-of-work (PoW) consensus mechanism will be moved to the proof-of-stake (PoS) blockchain. This means that Ethereum miners will be unemployed and a large number of graphics cards will be liquidated massively. Market research firm Messari estimates the global Ethreum mining industry is now worth around $19 billion.

"Miners face a sudden change as Ethereum moves from PoW to PoS. When the role ends, they are forced to look for alternative income streams," JPMorgan commented on the impact of the move. merge to miners.

On cryptocurrency mining groups, information about the merger date becomes a hot topic of interest and discussion. The administrator of a cryptocurrency mining group with 80,000 members said: "Most of the 'buffalo' in Vietnam are used to plow Ethereum, so this event has a direct impact on domestic miners. Almost certainly. merger plan will happen. To keep miners from turning into scrap, people are betting on Ethereum Classic (ETC)."

The news of the Ethereum merger that took place in September became a topic of discussion across crypto mining pools.
The news of the Ethereum merger that took place in September became a topic of discussion across crypto mining groups.

Ethereum Classic is a fork from the Ethreum network after the $60 million hack in 2016. Since then, ETC and ETH have existed side by side, however most miners switched to ETH mining because of the higher price. Currently, each ETC costs around 41 USD while ETH price is 1.9k USD.

"It would be silly to compare ETC and ETH prices. But if the merge succeeds, the Ethereum network eliminates miners completely, Ethereum Classic will be the best choice. Given the current market, many ETH miners are suffered a loss in electricity because the algorithm was getting harder and harder while the token price fell.. ETC mining is not better, although it can get more 'output' but the price is cheap.After calculating, I decided to transfer both More than 300 miners are mining ETC, taking advantage when there are few miners left," said Xuan Tuyen, a longtime cryptocurrency miner in Dong Nai.

According to Tuyen, there is still no certainty whether ETC price will increase next month or whether consolidation will take place. Some miners continue to mine ETH while they can. Others have started to turn to ETC mining in the hope of getting the most tokens before everyone rushes in.

"How can I know if ETC is more valuable, or still holding at $40? Maybe the September consolidation failed, ETH mining continues? Those questions kept circling in my head. For a whole month, there was no signal or expert who could give me an accurate answer, so I finally decided to 'all hands', completely switching to ETC mining," Tuyen said.

Aydin Kilic, President and CEO of Hive Blockchain, thinks that ETC's price increase in the post-consolidation era does not depend very much on whether blockchain developers want to use it or not.

“Currently 95% of DeFi (decentralized finance) projects work on the Ethereum chain. If they find PoW to be the safest and best for projects, ETC could increase in price,” Kilic told CoinDesk. He also places a lot of faith in the security and stability of the proof-of-work consensus mechanism rather than the proof-of-stake.

The belief of influencers like Aydin Kilic makes miners hope and bet big on ETC. In the event that Ethereum merges successfully, the miners' choice to return to ETC is reasonable. If the PoS mechanism does not work effectively, the manufacturers return to the PoW mechanism, ETC miners will win big. The worst case scenario for miners is a successful merger, PoS mechanism works stably, ETC price stands still, they will face a debt spiral, forcing the sell-off of components at cheap prices - a scenario that is already standard suffered from the early days of Ethereum planning to merge.
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