Miners are giving up Ethereum to switch to another cryptocurrency

news devices Miners are giving up Ethereum to switch to another cryptocurrency

Ethereum in the hearts of crypto miners

For several years, Ethereum, the second largest cryptocurrency after Bitcoin, filled the coffers of graphics card providers. In just two years, its price has doubled by 40 if we refer to the ATH (all-time high, record value) for November 2021.

By going from a hundred dollars to nearly 5000 dollars, Ethereum has been able to attract miners of all kinds, whether they are professional or not. Less energy-intensive than Bitcoin, the cryptocurrency has proven itself both on mining farms and in the homes of amateur miners. This strong enthusiasm has partly contributed to the graphics card stock shortage we’ve seen in recent times…it left quite a few gamers on the sidelines.

The merger will change the habits of miners

Only, mining enthusiasts will have to return to the cryptocurrency by the end of the year. In fact, ether can no longer be mined using computing power since the network The second largest cryptocurrency will change its protocol from Proof of Work to Proof of Stake.

Thus, many miners using mining rigs aligned with dozens of graphics cards will have to sell their equipment or switch to another cryptocurrency to be mined.

Aware of the disappointment of some users after the update scheduled for September 2022, the Ethereum CEO himself advised miners to move to Ethereum Classic. At the EThCC community conference, Vitalik Buterin suggested that miners using Proof of Work should switch to the classic cryptocurrency Ethereum.

Ethereum Classic, the little sister of Ethereum, a favorite crypto for miners

Like World of Warcraft (which Vitalik Buterin especially appreciates by the way), Ethereum also has a “Classic” version. Concretely, Ethereum classic is the original version of Ethereum, without many updates that have been made since its birth. As a result, Ethereum Classic can be mined despite the Ethereum Proof of Stake update.

Therefore, when Ethereum requires mining capital, it is very likely that many miners with their graphics cards will leave to mine Ethereum Classic. In the absence of an update, Ethereum Classic works as it did in its infancy. So miners will not be out of place as it is the original Ethereum blockchain launched in 2015.

The philosophy behind Eth Classic is close to Bitcoin. In fact, the Ethereum Classic community puts the code in the center: regardless of security threats, humans should not interfere, because in theory, the code is enough on its own.

For this reason, the Ethereum Classic network operates under the DAO (Decentralized Autonomous Organization). This system allows each user to vote in making different decisions about the cryptocurrency.

The birth of Ethereum Classic

Ethereum Classic was born in 2016, after the hack of the Ethereum network. A year after its launch, Ethereum was the victim of a hack of 3.6 million ether (ETH), out of about 50 million.

With the aim of finding a solution to this extraordinary hack, the founders and users of Ethereum chose to create a hard fork. A “fork” arises when a community decides to modify a blockchain protocol or set of rules with the goal of creating a section of the blockchain. By resetting the blockchain, sleight of hand enabled users to find $50 million locked into the Ethereum system.

Since this event, Ethereum Classic has continued its path. Similar to its big sister Ethereum, the cryptocurrency has amassed an active community, making it among the top 20 cryptocurrencies by market cap. Will the massive influx of miners cause the price of Ethereum Classic to rise? See you in September…