Wedo | Ethereum 2.0 is coming, is now a golden opportunity for miners?

After Ethereum completes the upgrade and switches to PoS mining, it does mean that the income of PoW miners will gradually decrease until they can no longer earn any income. However, existing miners do not need to worry about the transition, because the official Ethereum has not given a clear upgrade time for the upgrade from POW to POS. In addition, the upgrade requires the completion of the blockchain witness mechanism and the modification of the current Ethereum virtual machine data structure, which is equivalent to changing from a consensus bottom layer to one of the shards closer to the user layer. The workload involved is by no means as simple as we imagine.

In addition to the consideration of the mining income of miners, the more practical question is whether the ETH 2.0 code can safely take over the existing DeFi projects with a locked value of more than 80 billion US dollars. The transition of wallets, exchanges, stablecoins and many infrastructures will take more time.

Before all this happens, Ethereum still needs PoW mining to support the smooth operation of this system. Many players in the industry estimate that it will take more than two years for Ethereum to complete the 2.0 upgrade if there are no major bugs in the middle. If there are loopholes in the upgrade process and protocol algorithm, the Ethereum Foundation will spend more time to verify and improve the entire upgrade process, which will take even longer.

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Why is now a golden opportunity for miners?

After Ethereum upgrades to 2.0, we should not only view the mining model from the perspective of miners, which will change from POW to POS. We should also see that the reduction of transaction costs will further expand the Ethereum ecosystem, and the emergence of the destruction mechanism of Ethereum and POS will occupy a large amount of circulation. All of this will push up the value of Ethereum in the future.

Therefore, what we miners need to see is how to obtain the greatest value and seize the golden opportunity in the process of transformation from PoW to PoS.

Although Ethereum has been planning to upgrade to 2.0, no one knows the exact time and cycle for completion, and the official progress is uncertain. This will cause some hesitant miners to give up the layout of Ethereum mining machines, so that the remaining miners will enjoy a significant increase in revenue after the decline in the computing power of the entire network. This is also part of the reason why the computing power of Ethereum has been relatively stable during this period.

The price of Ethereum continues to rise while the computing power is stable. The most direct impact of this on us POW miners is a shortened payback period and a high daily return rate.

Disclaimer: This platform is intended to convey more market information and does not constitute any investment advice!

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