WARNING! Ethereum Is About To Self Destruct!! Who’ll Replace ETH!?

Ethereum…let’s talk about ETH baby, let’s 
talk about proof of stake! Let’s talk about   all the good things and the bad things that may 
be! Yeah today is about Ethereum, but not just   ethereum….the next ethereum 1.0..who is going 
to take over gpu mining when it moves to proof   of stake!? Well, find out as we dive into the 
rabbit hole…because it’s time for Chico Crypto!! Well Ethereum and Bitcoin are proving themselves 
against the naysayers, who don’t see the value in   decentralization and only want speed, cheap 
transactions, and GAINS! What do I mean!? The Solana network was basically down 
all day 2 days ago, and the blockchain   was shut down by a small and centralized 
group of whale VC validators! They should   probably change this on their website 
now….Decentralized and unstoppable! To   centralized and we will shut it down 
when things start to fall apart! Now both Bitcoin and Ethereum are 
based on proof of work consensus,   and in their current forms are decentralized.

Not 
one group can decide to shutdown the blockchain,   that would need to be voted and singalled by 
the network of miners and nodes on each network.   There couldn’t just be a quick plug 
pulled, like what happened with Solana! Proof of Work with an appropriate hashrate has 
proven itself to be the most reliable consensus   mechanism, which is truly decentralized. 
Bitcoin has chosen so far to stick with   the time-tested proof of work, but Ethereum has 
decided to switch. They are moving to proof of   stake due to it’s scaling limitations, 
and possibly by the end of this year! The beacon chain is Ethereum’s proof of 
stake blockchain, which has been running   in parallel to the Ethereum proof of work 
blockchain since December of last year!   It’s the most robust proof of stake network 
out there, with over 236 thousand validator   nodes….although it’s in its most basic form, 
no smart contracts…it’s just running the   proof of stake consensus and paying out 
Ether rewards to the validator stakers. But by the end of the year, the beacon chain 
becomes smart as the full transition to proof   of stake from proof of work happens! This has been 
termed the Merge, and this is also when EIP 3554   is implemented, the difficulty bomb, which makes 
mining on Ethereum obsolete, it cuts the rewards   to zero & according to Nethermind, this is all 
hopefully happening in December of this year! So this is great for the validators waiting 
in line, as they will be not only getting   staking rewards, but transaction fees 
that the miners have been reaping   in lately! As we can see from cryptofees.com, 
the average over the past 7 days is over 36   million dollars.

Each day, on average 
36 million dollars in fees alone   are going to the miners. This is not including 
their mining rewards. December these millions   in fees are being reverted to the proof of 
stake validators, plus the staking rewards… But that means the miners get   nothing…they get booted to the curb 
with the Merge and difficulty bomb! That is a lot of power, as the 
Ethereum hashrate is hitting   all time highs recently! It crashed during 
the China mining FUD and lies, in June,   but has surpassed that level, and as of yesterday 
was over 715 thousand Gigahashes of mining power   or 715 Terahashes!! To put that in perspective, 
Ethereum’s main fork, Ethereum classic only   has just over 24 Terahashes…or just 3.3 
percent of Ethereum’s proof of work chain! But many will argue that there is a play with 
Ethereum classic here! Including myself in the   past….The argument is a lot of this mining 
power is going to migrate from Ethereum   to Ethereum classic once the merge happens! 
The miners and their power need a place to go!!   And it seems like it would just make 
sense for the miners to go to the classic   fork…not much adjustments would need 
to be done, as they use similar algos! Buttt…hold up.

Ethereum is majority 
mined using GPUs, graphic processing units.   Ethereum has worked it’s but off since inception, 
restructuring and redeveloping ETHhash to make   its ASIC resistant… rejecting hashes from 
ASIC miners. Although within the last year,   Ethereum knew it was moving to proof of stake, so 
they didn’t fight ASICs anymore and 4 have been   developed. As seen from ASICminervalue.com3 
from Innosilicon, and 1 from Bitmain! So these will likely move over to an ETHhash 
blockchain like Ethereum classic as they have   to…they were built to specifically mine that 
algo. But the majority of the hashpower is GPUs,   and GPUS are flexible, they can use 
their power to mine other algorithms! So where are the miners going to go!? Well luckily 
there is a great website, called whattomine.com &   it shows you the most profitable proof of 
work chains for GPUs! We can ignore all the   Nicehash ones, as that is just a powerbroker aka 
middleman for different algos.

But #1 of course is   Ethereum…the 2nd most profitable is Ravencoin, 
3rd is Ethereum classic, 4th is quarkchain, 5th   is beam, 6th is ergo, 7th is Metaverse ETP, 8th is 
vertcoin, and we will stop at 9, and that’s Zano. Miners usually don’t discriminate, or hold 
emotional grudges against blockchains…they   are about one thing and one thing 
only. They are about profitability! So does that mean, they will all jump over 
to the 2nd most profitable…Ravencoin!?   No, not at all. Some will, but many won’t. 
Coindesk actually put out an article on this   in July of this year titled “Valid Points: The 
Fate of Ethereum Miners When There’s Nothing Left   to Mine” and in the article they said “Michael D. 
Carter, the host of cryptocurrency mining YouTube   channel BitsBeTrippin, told CoinDesk in a phone 
interview that according to his calculations,   if all Ethereum GPU miners were to move 
over to Ravencoin, the price of the coin   would have to appreciate roughly 10 times 
in order for miners to remain profitable.

“ “To Carter’s mind, the more likely scenario 
post-Merge is that miners end up splitting their   computational energy, also called hashrate, across 
multiple different coins that support GPU mining   and stay in business by spreading out 
to several new blockchain networks.” “You’re going to see network discovery 
and you’re going to get buzz around   other networks naturally because 
people are going to want to know:   Where are the miners going to 
be pointing their hashrate?   Is there anything as profitable? What’s the value 
propositions of these other networks?” Carter said Now I would trust Micheal Carter, BitsBeTrippin, 
he is a large and very knowledgeable miner   who has been analyzing this for some time. 
Diving into the technical and financial details! They are going to likely spread out 
among the top coins on whattomine!   But they do need volume and liquidity for the 
miners to unload, so coins like Metaverse ETP   and even old vertcoin might not see much as 
their liquidity and volume is drying up!! So where do I see the GPU hashrate going! 
Where will be the GPUs miners' biggest new   home!? Bringing in most of the power? And 
the one that will most likely do the biggest   price increase…thus balancing 
out profitability for the miners! It’s not ravencoin, as pulling out it’s hashrate   since the May crash…it still hasn’t 
recovered.

Lower than it once was…. Ethereum classic, it will get some as 
the hashrate made a big jump in May,   and then a slight dip in June…but it 
still hasn’t surpassed the May high! Who else out of those listed on whattomine!?   Well there is one blockchain, who already has 
more Terahashes of power than Ethereum classic,   and it’ hashrate has been exploding since 
May of this year. Which signals to me   some of the Ethereum miners and their GPUs 
have already been migrating. That is Ergo! Since May it has jumped from about 2.5 Terahashes 
to peaking at 40 just a few days ago! But it has   dipped and is currently just above 32 terahashes! 
Still a very big push up in just a a few months! Now I know some of you might say…Hey Tyler, 
this Ergo, connected to Emergo and Cardano!   The people behind Ergo are former IOHK 
devs! I know that…but this is mining,   miners are there for profitability…they 
don’t care about emotional grudges,   ethereum maximalism and the like…and 
when it comes to miner migration,   and price increases due to that….neither 
does Chico…I still hate cardano, and it’s   failure of a blockchain…but that doesn’t mean 
Ergo is going to take a lot of the hashpower… Cheers! I'll see you next time!

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