news hardware Miners are abandoning Ethereum to switch to another cryptocurrency
With Ethereum’s The Merge update fast approaching, it is very likely that some former miners of the second largest cryptocurrency will turn to another cryptocurrency to mine.
- Ethereum in the hearts of cryptocurrency miners
- The merger will change the habits of miners
- Ethereum Classic, the little sister of Ethereum, a crypto of choice for miners
- The birth of Ethereum Classic
Ethereum in the hearts of cryptocurrency miners
For several years, Ethereum, the second largest cryptocurrency behind Bitcoin, has filled the coffers of graphics card vendors. In just two years, its price has multiplied by 40 if we refer to its ATH (historical maximum, value record) of November 2021.
Going from $100 to almost $5,000, Ethereum has been able to attract miners of all kinds, professional or not. Less energy intensive than Bitcoin, the cryptocurrency has established itself both on mining farms and in the homes of hobby miners. This strong enthusiasm has contributed in part to the graphics card stock shortage we’ve experienced of late…leaving some gamers on the sidelines.
The merger will change the habits of miners
Except that mining fans will have to turn to a cryptocurrency by the end of the year. In fact, Ether can no longer be mined using computing power, as the network of the second largest cryptocurrency will change its protocol from proof of work to proof of stake.
Therefore, the many miners using mining rigs lining up several dozen graphics cards will be forced to sell their equipment or switch to another crypto to mine.
Aware of the disappointment of some users after the update scheduled for September 2022, the CEO of Ethereum himself advised miners to switch to Ethereum Classic. At the EThCC community conference, Vitalik Buterin suggested that proof-of-work miners should switch to the classic cryptocurrency Ethereum.
Ethereum Classic, the little sister of Ethereum, a crypto of choice for miners
Like the game World of Warcraft (which, by the way, Vitalik Buterin especially appreciates), Ethereum also has a “classic” version. Specifically, Ethereum classic is the original version of Ethereum, without the multitude of updates made since its birth. As a result, Ethereum Classic can be mined despite Ethereum’s proof-of-stake upgrade.
So when Ethereum will require capital to be mined, it is very likely that several miners will come out with their graphics cards to mine Ethereum Classic. In the absence of an update, Ethereum Classic works as it did in its infancy. Therefore, miners will not be out of place since 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 code at the center: no matter the security threats, humans should not intervene, since, in theory, the code is enough on its own.
For this reason, the Ethereum Classic network operates under a DAO (Decentralized Autonomous Organization). This system allows each of the users to vote on different decisions about cryptocurrencies.
The birth of Ethereum Classic
Ethereum Classic was born in 2016, after the hacking of the Ethereum network. A year after its launch, Ethereum had been the victim of a hack worth 3.6 million Ether (ETH), out of about 50 million.
In order to find a solution to this exceptional hack, the founders and users of Ethereum have chosen to create a hard fork. A “fork” occurs when a community decides to modify the blockchain protocol or a set of its rules with the goal of creating a blockchain split. By resetting the blockchain, sleight of hand allowed users to find the $50 million locked in the Ethereum system.
Since this event, Ethereum Classic has gone its way. Like its big sister Ethereum, the cryptocurrency has gathered an active community, ranking it among the top 20 cryptos by market capitalization. Will the massive influx of miners drive up the price of Ethereum Classic? See you in September…
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