the mining of cryptocurrencies, a practice that is complex and profitable especially if you know which crypto to invest your efforts. But the recent crypto price crash has turned everything upside down. Including the profitability of mining some of them, including the big and famous Ethereum.
Mining Ethereum less profitable?
Before even thinking about crypto mining, it is necessary to invest in high performance equipment. Generally this investment becomes profitable at the price of the crypto concerned. But recently, we have seen many miners revolt of Ethereum (ETH). Many graphics cards are even resold on the market. But why?
The reason is simple. the mining ether (ETH) Doesn’t seem profitable anymore. Within a few weeks, the price of ether dropped almost 70%. Some even agree to predict that its price could drop below the 1,000 dollar mark. With these figures, it is difficult to make the activity of it mining. It seems that the legislation is trying to put a spoke in the wheels of the crypto miners. Recently, even the mayor of New York had to express his anger against a two-year moratorium that risks banning the mining.
The Merger: switch to PoS and end ETH mining
The IS blockchain ethereum It is currently based on Proof of Work (PoW). But it’s only a matter of time before it switches to Proof of Stake (PoS) with the infamous Ethereum blockchain merger, making Ethereum 2.0. Also called The Merger, this merger was usually scheduled in June. It appears that the last technical checks in his launch process have delayed him. According to Vitalik Buterinco-founder from Ethereumthe merger should be initiated between August and September.
This is not good news for minors, however. of ether. Far from it. By switching from PoW to PoS, it will be completely impossible for users to mine Ethereum mining. Ropsten’s public testnet has already been upgraded to Proof of Stake, and the testnet results look positive. This is one of the factors that will determine whether or not the merger will happen in the coming months. The only solution available to minors of ether then move towards another blockchain that will operate on a PoW basis. So, The Merge will be an attractive revolution for early adopters of blockchain and ether, but a sad end for mining. of ether.