Connect with us

Mining

PoW Miners Rake in Profits Mining ETH Until the End, Ethash Networks Expect a Boost, JPMorgan Strategists Say ETC Could Benefit

PoW Miners Rake in Profits Mining ETH Until the End, Ethash Networks Expect a Boost, JPMorgan Strategists Say ETC Could BenefitIn just over a month’s time, The Merge is likely to 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 seems ethereum miners are sticking with the PoW Ethereum chain until the very end as profits have increased. While Ethereum will change […]

PoW Miners Rake in Profits Mining ETH Until the End, Ethash Networks Expect a Boost, JPMorgan Strategists Say ETC Could Benefit

In just over a month’s time, The Merge is likely to 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 seems ethereum miners are sticking with the PoW Ethereum chain until the very end as profits have increased. While Ethereum will change the consensus ruleset, a great number of crypto community members are attempting to guess where the hashrate will go after The Merge transition.

The Crypto Community Wants to Know Where Ethereum Miners Will Go After the Merge — There’s a Myriad of Different Theories

On August 11, 2022, Ethereum developers let the community know during a Consensus Layer Call livestream that The Merge will most likely happen on or around September 15th to the 16th. The following day, Ethereum co-founder Vitalik Buterin confirmed that The Merge would likely happen on September 15. “The terminal total difficulty has been set to 58750000000000000000000. This means the ethereum PoW network now has a (roughly) fixed number of hashes left to mine,” Buterin said.

Since then, the question everyone has been asking is where the current Ethereum hashrate will go after the transition takes place. There’s always been a lot of speculation that most of the ETH hashrate will move to Ethereum Classic (ETC), but that’s not everyone’s opinion. Besides the proposed ETHW fork expected to happen, which very well could take a fraction of the ETH hashrate, and there are crypto coin supporters that expect their chain will get added security. We also don’t know how much hashrate the potential proof-of-work Ethereum fork called ETHW will get after The Merge.

One supporter of the crypto asset project ravencoin (RVN) expects the RVN network will get a boost. “If there has ever been a time to own ravencoin, it’s right now,” he said. “Thousands of ethereum miners will be moving to ravencoin due to the end of mining next month for [Ethereum]. The next 2 years is huge for RVN.” So far, however, there’s been no meaningful transitions from the Ethereum network to any Ethash blockchains like RVN and ETC.

There was one significant hashrate drop the ETH network experienced and it started on June 6. Statistics show that on that day, there was 1.23 petahash per second (PH/s) or 1,230 terahash per second (TH/s) dedicated to the ETH chain. The data shows that roughly 230 TH/s has left the network, but none of the Ethash supporting blockchains have seen an accumulation of hash at this magnitude.

Ethereum Miners Are Seeing Bigger Profits by Sticking With the Chain Until the End — JPMorgan Strategists Think Ethereum Miners Will Face Shifts, Ethereum Classic Could Benefit

The reason being is it is still very profitable to mine ETH, in comparison to mining alternative Ethash supporting chains. Data shows that Bitmain’s Antminer E9 gets an estimated $60.55 per day with electrical costs at $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 an estimated $34.53 per day with energy costs at $0.12 per kWh. Presently, a large number of the top ETH mining pools mine the ETC chain as well. Some of ETH’s top miners also contribute hashrate to Ravencoin’s 2.31 TH/s and Ergo’s 11.95 TH/s.

With profits like these and the new Antminer E9 released during the first week of July, it’s more than likely that miners mining ether will stick to the ETH chain up until the very end. While ETH lost 230 TH/s, on July 4, 2022, ETC did see a small spike when 7.12 TH/s was added to the network since that time. JPMorgan’s recent weekly fund flows note, published on Wednesday, explained that The Merge transition could become volatile for ETH miners and ETC may reap the rewards. The investment bank noted that ETC saw a spike in July, and the weekly fund flows note also highlighted alternative crypto assets that use Ethash like ergo and ravencoin.

What do you think about The Merge and how miners will need to make a choice in 32 days when it comes to choosing an Ethash supporting blockchain? Let us know what you think about this subject in the comments section below.

Source: Mining Archives – Bitcoin News

Continue Reading
Advertisement

Crypto

Bill Aims to Limit Crypto Mining in Kazakhstan Only to Registered Companies

Bill Aims to Limit Crypto Mining in Kazakhstan Only to Registered CompaniesNew legislation proposed in the parliament of Kazakhstan will allow only authorized miners to mint digital currency, if adopted. The draft has been designed to comprehensively regulate the industry and reduce what its sponsors label as uncontrolled consumption of electricity in the sector. Lawmakers in Kazakhstan Submit Crypto Mining Law, Seek to Curb ‘Gray’ Mining […]

Bill Aims to Limit Crypto Mining in Kazakhstan Only to Registered Companies

New legislation proposed in the parliament of Kazakhstan will allow only authorized miners to mint digital currency, if adopted. The draft has been designed to comprehensively regulate the industry and reduce what its sponsors label as uncontrolled consumption of electricity in the sector.

Lawmakers in Kazakhstan Submit Crypto Mining Law, Seek to Curb ‘Gray’ Mining

Members of the Mazhilis, the lower house of Kazakhstan’s parliament, have put forward a new bill introducing rules for the extraction of cryptocurrencies in the country. Under its provisions, only companies registered at the Astana International Financial Center (AIFC) or non-resident entities that have agreements with licensed data centers, will be permitted to mine digital coins.

Kazakhstan became a magnet for crypto miners following China’s crackdown on the industry and the influx of mining businesses has caused a growing power deficit. AIFC, the Central Asian nation’s financial hub, is in the focus of government efforts to place the country’s growing crypto sector under oversight. Earlier this year, exchanges registered there were allowed to open accounts with local banks.

The current procedure for notifying authorities of mining activities is voluntary, the crypto news outlet Forklog noted in a report on the legislative attempt. The process is regulated by an order issued by the minister of digital development. Only a third of all mining companies operating in Kazakhstan have registered, Member of Parliament Ekaterina Smyshlyaeva revealed.

“The uncontrolled use of electricity by ‘gray’ miners poses a threat to the energy security of Kazakhstan,” the lawmaker insisted. Smyshlyaeva added that the current legislation does not regulate the mechanism for the sale of the mined cryptocurrency or the role of local financial service providers and the circulation of digital assets. “The procedure for their production and the establishment of property rights to them are regulated only at sub-legislative level,” she explained.

According to Kazakhstan’s State Revenue Committee, the contributions of crypto mining entities to the state budget reached $1.5 million in the first quarter of 2022. In July, President Kassym-Jomart Tokayev signed into law a bill amending the country’s Tax Code to impose higher tax rates on crypto miners. The levies now depend on the amount and average price of electricity consumed for the minting of bitcoin and other cryptocurrencies.

Do you expect the new law to reduce the number of entities authorized to mine cryptocurrencies in Kazakhstan? Tell us in the comments section below.

Source: Mining Archives – Bitcoin News

Continue Reading
Advertisement

Top Posts

We need your support.

Enjoying our free service? Please help us by clicking the ads on our website. They are 100% safe. Thank you!