Mining Ethereum? Reasons Behind ETH Price And Expectations

Mining Ethereum? Reasons Behind ETH Price And Expectations


Hello, welcome to Coined Times with Maria
Matic. If you are mining Ethereum, or you mined or invested in Ethereum,
like many of my friends, you are probably asking around what’s happening
with Ethereum, did we touch the bottom, what the price is going to be,
what are the news around Ethereum. So, there are couple of important
things around Ethereum and as you know we are in the bear
market but certain issues are only related to Ethereum, like ICOs.
Billions have been raised by ICOs for the tokens
built on Ethereum. There is a theory saying that ICOs have
been selling-off the Ethereum in order to fund their operations
or maybe for malicious reasons because there are a lot of
competitors to Ethereum which raised money, which raised Ethereum.
So, they can manipulate. Although just a couple of them
could manipulate, like EOS which raised 4 billion dollars
worth of Ethereum etc.. Bitmex Exchange did a research
about ICOs and the funds they raised and how much they sold so far. And according to Bitmex, ICOs already
sold the majority of what they’ve raised, and majority of that they
sold in December and January. Although this doesn’t cancel the
issue and problem with ICOs and it’s not just Ethereum’s
problem, it’s going to be a problem of other Blockchain-As-A-Service
platforms which are not yet developed
like Ethereum and not popular as Ethereum,
but I’m sure they are going to have those kind
of problems as well. But at least it’s comforting
to know that a majority of the funds which ICOs have raised
have already been sold. The other thing which is also
putting pressure on Ethereum price is miners selling-off
their rewards in order to pay for the electricity and to fund
their operations. But according to Ethereum Foundation, when
they go Proof of Stake, they expect that there’s not
gonna be this selling pressure by the miners anymore because
basically they are not going to have electricity cost.
So this will kind of offer relief, but the Proof of Stake
is so far away, we don’t even know when it’s going to happen.
Casper protocol has been delayed, I don’t know
how many times, and that is the other issue. The other
issue is the Time Bomb. So, Difficulty Adjustment Time Bomb
which was set up in order to disincentive Ethereum miners
from mining on the Proof of Work blockchain and to go to
Proof of Stake blockchain. So basically this Time Bomb
is supposed to take us to the “Ice Age”, which was supposed
to happen around 2021. But last October we had an upgrade
and hard fork in order to delay it for maybe one more
year, and now in October we are going to have another upgrade,
Constantinople, which will also delay the Time Bomb for
one more year, and also the proposal, which said that
rewards should be reduced to 2 ETH per block, was accepted.
So basically, miners will receive 2 ETH per 1 block,
which will reduce transaction cost, transaction fees, so
basically it will be cheaper to send Ethereum through the
network, to do transactions. This proposal is also kind of
good for investors because, investors prefer if there is
less future issuance, and this is particularly important
because Ethereum does not have a defined issuance, doesn’t
have a total supply like many other coins have. So this
is also unresolved issue. But we have this certainty in
the next 8 months, because the next upgrade is supposed
to happen in 8 months. I expect that this upgrade bring
certain elevation to the price. I’ve read somewhere that
on the 9th October the hard fork is going to happen on the TestNet.
However, I’m not sure, because I lost that
article, if it’s true or not, but it’s supposed to happen
on a MainNet in October or beginning of November. So,
there’s also been a partnership announcement with Hyperledger,
kind of alliance. I guess they are planing to lobby
together, because I don’t see other reason for this alliance.
They are basically competitors. Let me know what
you think and I would really like to hear what is your
opinion on the future price movements. I think that, if
there’s no other large market movement, this upgrade
might elevate the price. Let me know what you think, see
you soon, have a lovely day, bye.

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