December 3, 2022


As we approach the Ethereum Merge, the opinions of the crypto community have been more frank than usual. The long-awaited ETH 2.0 will change the blockchain consensus mechanism to the Proof of Stake model, bringing ETH miners out of business. Aside from the chances of them leaving the mining industry, there is a possibility that they will choose to hard fork in the Ethereum network or also try to switch to a different blockchain.

what is going on?

Recently, Hongcai “Chandler” Guo, a former ETH miner, mentioned in a an interview Many Chinese Ethereum miners have reached out to him to start counterfeiting efforts. According to journalist Colin Wu, there are nearly $5 billion in graphics card and ASIC Ethereum (A11 E9) miners that need to find a way to continue mining after the merger.

Although converting ETH to a PoS mechanism will significantly reduce electricity consumption, miners are concerned about how their operations will continue. For some, a hard fork that allows them to continue mining cryptocurrency is a good idea.

While there is a lot of hype in the crypto community regarding Ethereum 2.0, as always, opinions are diverse. In fact, in a recent Twitter thread, MakerDAO noted that the merger could do more harm than good.

The miner’s dilemma

Ethereum miners have faced a variety of challenges over the past several months in order to profit from ETH mining. The profitability of ETH miners has been severely affected by the crash of the cryptocurrency market, as well as by the surge in electricity prices around the world.

According to Bitinfocharts’ statistics, mining was less profitable in July 2022 than it was in 2021, when it was $0.025/day for 1 MB/sec.

Source: BitInfoCharts

Therefore, going hard fork does not appear to be a viable option for miners as they will still struggle to make a profit. Another indication of the minimal possibility of a hard fork is the low overall hash rate of the Ethereum network as it indicates an influx of miners from the network.

Source: 2miners

minimum

While the ETH network hash rate has decreased, a massive influx of new miners has been observed on the Ethereum Classic blockchain. Given the performance of Ethereum Classic over the past month, it could be a viable alternative to ETH for miners.

Since ETC runs on the PoW consensus mechanism, the new hard fork in the Ethereum network seems illogical. Since there are more profitable alternatives to Ethereum, there is little or no chance of another hard fork emerging.

Source: 2miners





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