Ethereum is about to expand, is it a blessing or a curse for mining and currency prices?
On February 28th, Bihu hosted a live broadcast that attracted a lot of attention, because this time the protagonist was God V. Overall, this live broadcast is good. I will say what is good about it at the end.
This god-like figure is related to the interests of too many people, especially miners, the EIP-1559 scheme, and with the addition of chip machines to the mining team, will anti-ASIC be added in the upcoming Berlin fork? ProgPOW algorithm.
These will be directly related to the interests of miners. The implementation of EIP-1559 will probably reduce the amount of coins produced by 30%, and the ProgPOW algorithm will have a devastating blow to the current chip machines.
But unfortunately, in V God’s eyes, there is only how to realize the great vision of Ethereum. What he sees is how Ethereum will become the world’s computer in the future. He doesn’t care about the interests of miners at all, so the information that miners want to know is broadcast live this time Can't get anything out of it.
But as investors, we certainly do not have the height of V God. Our primary consideration is whether we can pay back the cost, how long it will take to pay back the cost, and how much profit we can make after the payback.
Although these V Gods didn’t talk about it, the mining circle is already full of turmoil. Miners represented by Xinghuo Mining Pool strongly oppose the EIP-1559 plan, and F2Pool, which ranks third in terms of computing power, supports it.
Now we have no way to avoid this problem. Since we must face it, we just take advantage of this time to chat with you.
Is it necessary to implement the EIP-1559 plan, and the significance of ZK Rollup and ETH2.0.
The EIP-1559 scheme is valuable for the Ethereum ecology. A large part of the value of Bitcoin is reflected in its constant number of 21 million pieces. The issue of the number of Ethereum is criticized by investors. The amount is not online, so it has always been in a state of inflation.
However, EIP-1559 introduces a destruction mechanism, and the amount equal to Ethereum may change from an inflationary state to a deflationary state, which is an exciting thing. Although from the perspective of the currency standard, the EIP-1559 scheme will lose about 30% of the coins, but it is likely to gain more from the perspective of the gold standard.
Secondly, EIP-1559 is also very necessary for ecological construction. Here I want to talk about ZK Rollup. The implementation of EIP-1559 may not be able to solve the root cause of the reduction of the transaction fee of ecological participants, but can only be temporarily relieved.
However, after the implementation of ZK Rollup, the fundamental TPS problem is solved, and everyone will not increase the handling fee in order to scramble for the first place, so that the handling fee can really drop. In V God’s words, it will be 100% lower than it is now. times.
At present, V God will put all his energy on ZK Rollup, because this is the most critical weapon against other public chains encroaching on the Ethereum ecosystem.
Recently, the ecological spillover phenomenon of Ethereum has been very serious. The public chains developed by centralized trading platforms such as Binance Chain and Huobi Chain have developed rapidly relying on technology and the number of customers. There are also "sharks" who have been surrounding Ethereum. Polkadot, Astro Boy, and Cardano have all benefited from the congestion of Ethereum in this round, and Cardano has increased nearly 6 times since the beginning of the year.
Therefore, the first step of Ethereum is to implement the EIP-1559 solution, and the second step is to step up the implementation of ZK Rollup, which can basically solve the current predicament.
Once the ZK Rollup is completed, opportunities for other public chains will be almost blocked. At that time, many projects that have left will move back like migratory birds. After all, the security of Ethereum is unmatched by other public chains.
The pace of ETH2.0 is not so fast. We may still be able to mine for a while. V God is known for his steady work, unlike other project parties who are so radical. ZK Rollup can already solve most of the current problems. The capacity may not be used until a few years later when the blockchain ushers in a major explosion, and the 2.0 sharding will not be really necessary until then.
Do you want to support forks, and change the algorithm.
Whether or not to support forks is actually inappropriate. What is more appropriate is whether miners forks are useful and can they be realized? I feel difficult, very difficult. The relationship between ETC and ETH back then was a fork, and we can all see the status quo of ETC now, which is not at the same level as Ethereum.
Although the combined computing power of Xinghuo, Ethermine and other miners has the ability to fork Ethereum, the reason is very simple:
If a chain parallel to Ethereum is forked, without a leader like V God, without ecological support, and without the activity of DeFi, what will support the currency price of this chain; without the prosperity of DeFi, where will it be collected? The gas fee may end up being a stupid trick to kill eight hundred enemies and lose one thousand.
Now these miners stand up against, more like a demonstration. But V God doesn't seem to care. In the community, some people say what to do if big miners launch a 51 attack on Ethereum. V God means that all of them should be transferred to the POS chain as soon as possible.
It basically means that if you threaten me, I will destroy your job. As an old miner with hundreds of mining machines, I can accept the implementation of EIP-1559. After all, let Ethereum enter a state of deflation, which can make up for the loss of the reduction in currency production during the rise in currency prices.
Then there is another question, whether it will change the algorithm or not. The computing power of the entire network of Ethereum has grown relatively fast. It has increased from about 280TH/s at the beginning of the year to almost 400TH/s now. I also found that there are many chips from various channels. Machines are entering the market.
In fact, this is also normal. After all, the profit of Ethereum mining is very high. Coupled with the status and stability of Ethereum in digital currency, more and more people join this mining. Most of them prefer Ethereum. .
So whether the ASIC-resistant ProgPOW algorithm will be added to the Berlin fork, in fact, there is no basis for it from official channels, and now it is all speculation on the Internet.
Although the current computing power is increasing, it has not reached the state of out-of-control like the Bitcoin computing power in the past. In addition, the elimination of 4G graphics cards has vacated a large part of the space that can be filled. Personally, I think V God’s determination to change the algorithm is not Very strong, after all, the completion of ZK Rollup is more important at this stage.
For example, Polkadot, Astro Boy, Binance Chain, Huobi Chain, and Ada are like external troubles, while miners’ control of computing power is like internal troubles. Prejudice, unanimously external", we who know a little bit of history know the final conclusion.
The last few years that Ethereum mining can last.
V God may also be willing to let the miners earn more money. After all, these miners in the ecology regard V God as the leader. If there is no threat to the absolute security of Ethereum, I think V God will more or less do it Think about these miners who contribute to the safety of the ecology, otherwise, wouldn’t they become tyrants?
Finally, through this live broadcast, I summarized three benefits for miners:
1. V God said that the implementation of the ROLLUP plan will be implemented in about half a year, so the fork to 2.0 must be postponed, which means that the mining cycle of old miners can be extended, how long? My guess is that from now on, there are still 3.5 to 4 years. After the calculation, from the original expectation of mining for 2 years to 4 years, it is equivalent to doubling the amount of currency produced.
2. Focus on solving capacity expansion, and finally be able to absorb the traffic that has been recently absorbed by other side chains, such as HECO and Binance Smart Chain, back to Ethereum. For miners, the price of ETH in this round of bull market may be more than $3,000.
3. V God's determination to focus on building great projects was confirmed again in the live broadcast. It should be said that the upgraded ETH is expected to surpass BTC in market value in the next round of bull market. And the unit price of an ETH is probably starting at $10,000. The question is how much ETH you have in your pocket when it comes to the next bull run.
4. The market trend is in the last 2-3 weeks. Since it is the last adjustment before the last wave of the bull market, it will be negative. It is recommended that you operate less and wait until the market falls to a certain extent before buying bottoms, or wait for the end of the adjustment to break through Chase more.
The experience in March is to cherish and seize the opportunity of the last wave of mining in the bull market.
Take Ethereum as an example, if you can get the mining machine in April, according to the current sapphire coin production, if the bull market is over in 6 months, you can mine for 5 months, then it is about 2.5 coins, according to At that time, the price of ETH in the bull market will be 3,000 US dollars, which is 21,000 RMB, which means that the total income will be 52,500, and 2,000 will be deducted from the electricity bill for 5 months.
In other words, if you can get 50,500 sapphire mining machines, you can get back your money in the bull market, and start mining at 0 yuan in the bear market.
No matter how you calculate it, it is still the most secure way of income for ordinary people.
