Can miners turn to Ethereum Classic ETC?

After Ethereum founder Vitalik Buterin encouraged PoW-enabled miners to switch to Ethereum Classic (ETC), DCG (Digital Currency Group) founders made a similar call.

On Aug. 6, Digital Currency Group founder and CEO Barry Silbert tweeted, “We fully support ETH PoS, and we do not plan to support any ETH PoW forks other than ETC. ETH miners should shift their computing power to ETC to maximize long-term revenue.

In fact, according to 2miners data, since July, the computing power of the entire ETC network has risen sharply, from around 20Th/s to 31.94Th/s, an increase of more than 50%. As of press time, the computing power of the entire ETC network is 30.06Th/s.

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According to miningpoolstats data, ethermine.org, 2miners.com, hiveon.net, f2pool.com, and poolin.com are the main mining pools of ETC.

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Previously, due to the merger of ETH and the transfer of miners, ETC experienced a short-term surge. However, some people in the industry are not optimistic about this situation.

Messari analysts said that the Ethereum merger narrative will not drive a sustained rise in ETC, which may surge in the days leading up to the merger, but it has no long-term upward momentum.

Ethereum mining currently accounts for 97% of graphics processing unit (GPU) mining revenue, with daily revenue of $24 million, Messari said. After the Ethereum merger, miners will be forced to sell their equipment or switch to ETC mining, which currently accounts for 2% of GPU mining revenue, with a daily net income of about $700,000. This huge gap in profitability means that even if a “meaningful portion” of miners migrate to ETC, mining difficulty will increase dramatically and make many miners unprofitable. 

According to Messari, Ethereum Classic has less than half the number of active addresses as Cardano, and the network is currently less than one-tenth as developed as Ethereum and Cardano, with no meaningful growth in transaction volume since 2018. “ Ultimately, price should have some fundamental link to network usage and underlying economic activity, unfortunately for ETC holders, neither, ” Messari said .

Encrypted KOL 0xAA said: ” ETC cannot catch the computing power of ETH miners. The most favorable solution for miners is to perform a hard fork when the Ethereum main network is converted to PoS, and create an ETH-PoW, which is better than the current ETC chain. Much more valuable. After all, the Ethereum ecosystem is much richer than when ETC was forked.

Messari analyst Dunleavy tweeted that transaction volume and users on the ETC chain have remained largely unchanged over the years, and the application does not exist. There has been no change in the chain from basic metrics, and no meaningful change in developer activity. 97% of GPU mining revenue comes from Eth, and 2% comes from ETC. The daily rwd for ETC is around 700k, compared to 24m for Eth. If miners end up migrating to ETC, the hash rate will increase significantly, causing mining variance to increase, driving most of the miners out of dollar profitability, and the only way to stay profitable is for ETC prices to rise.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/can-miners-turn-to-ethereum-classic-etc/
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