In just over a month, The Merge will likely be implemented on the Ethereum blockchain, and the network’s proof-of-work (PoW) miners will be forced to mine another coin. So far, it looks like Ethereum miners are sticking with the Ethereum PoW chain until the very end, as profits have increased. As Ethereum will change the consensus ruleset, many in the crypto community are guessing where the hashrate will go after The Merge transition.
The Crypto Community Wants to Know Where Ethereum Miners Will Go After the Merger – There Are Myriad Different Theories
On August 11, 2022, the Ethereum developers let the community know during a Consensus Layer Call livestream that The Merge will most likely occur on or around September 15-16. The next day, Ethereum co-founder Vitalik Buterin confirmed that The Merge would likely take place on September 15. mine”, Buterin said.
Since then, the question everyone has been asking is where the current Ethereum hashrate will go after the transition. There has always been a lot of speculation that most ETH hashrate will shift to Ethereum Classic (ETC), but not everyone agrees. Besides the proposed ETHW fork that is expected to occur, which could very well take a fraction of the ETH hashrate, there are cryptocurrency proponents who expect their channel will get extra security. We also don’t know how much hashrate the potential proof-of-work Ethereum fork called ETHW will get after The Merge.
A supporter of the ravencoin (RVN) crypto asset project expects the RVN network to get a boost. “If there was ever a time to own ravencoin, it’s now,” he said. said. “Thousands of Ethereum miners will switch to Ravencoin due to the end of mining next month for [Ethereum]. The next 2 years are huge for RVN. So far, however, there has been no significant transition from the Ethereum network to Ethash blockchains such as RVN and ETC.
There was a major hashrate drop that the ETH network experienced and it started on June 6th. Statistics show that on that day there were 1.23 petahash per second (PH/s) or 1,230 terahash per second (TH/s) dedicated to the ETH chain. The data shows that around 230 TH/s left the network, but none of the blockchains supporting Ethash have seen a hash accumulation of this magnitude.
Ethereum Miners See Bigger Profits By Staying With The Chain Until The End – JPMorgan Strategists Believe Ethereum Miners Will Face Changes, Ethereum Classic Could Benefit
The reason for this is that it is still very profitable to mine ETH, compared to alternative Ethash backing chains. Data shows that Bitmain’s Antminer E9 receives around $60.55 per day with electricity costs of $0.12 per kilowatt-hour (kWh). Bitmain’s machine is 2,400 megahash per second (MH/s), and Innosilicon’s A11 Pro with 1,500 MH/s can get around $34.53 per day with power costs of $0.12 per kWh. Currently, many of the major ETH mining pools also mine the ETC chain. Some of the best ETH miners also contribute to the hashrate of Ravencoin’s 2.31 TH/s and Ergo’s 11.95 TH/s.
With earnings like these and the new Antminer E9 released in the first week of July, it is more than likely that ether mining miners will stick with the ETH chain until the very end. While ETH lost 230 TH/s, on July 4, 2022, ETC saw a small spike when 7.12 TH/s was added to the network since then. JPMorgan’s recent weekly fund flow note, released on Wednesday, explained that The Merge transition could become volatile for ETH and ETC miners to reap the rewards. The investment bank noted that ETC saw a hashrate spike in July, and the weekly fund flow note also highlighted alternative crypto assets that use Ethash like ergo and ravencoin.
What do you think of The Merge and how miners will have to make a choice in 32 days when it comes to choosing a blockchain that supports Ethash? Let us know what you think about this topic in the comments section below.
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