Experts tell how profitable it is to invest in ETC and where miners will switch after Ethereum 2.0 rolls out
The long-awaited transition of the Ethereum network to a proof-of-stake (PoS) consensus algorithm is scheduled for this September. Ethereum supporters and the entire crypto community have been waiting a long time for developers to complete the network’s transition from PoW to PoS. During this period, two of the three test networks have switched to the new transaction confirmation algorithm. Starting December 1, 2020, early Ethereum 2.0 investors can lock coins on contracts in a testnet called Beacon and are expected to become validators of the main blockchain after the update is complete. At launch, there are over 13 million ETH in the stack.
According to Tehnobit CEO Alexander Peresichan, even after Ethereum transitions to PoS, the rejection of classic PoW mining will not be quick, and miners will gain some time to safely switch to other blockchains. "With not many alternatives, ETC is a pretty big contender." ETC's current sudden growth may indicate that miners are still eyeing the network as an alternative to ETH. I don't think Ethereum Classic will become irrelevant in the near future," said Alexander Peresichan, adding that in the future there is a chance for ETC to stay in the ranking of top coins. At the same time, in his opinion, ETC price, regardless of The arrival of new miners will follow the general trend of the cryptocurrency market.
Miners even started selecting candidates to replace ETH long before the approximate merge update date was announced. Some of them have moved equipment capacity to other PoW coins, accumulating them in the expectation that when the majority of miners switch to their mining, the price of the cryptocurrency will start to rise. At the same time, the profits they make from mining today, if it happens, are not comparable to the profits ETH brings from working on the PoW algorithm.But the head of fintech firm Exantech Denis Voskvitsov also expressed a view. He believes that the price of Ethereum Classic could rise significantly. However, the reason for this will not be the Phoenix hard fork, but rather the anticipation of an upgrade of the Ethereum network to version 2. Buterin’s altcoin changes the algorithm from proof-of-work to proof-of-stake, which will allow ETC to take ETH’s place in the crypto industry.
“The main conspiracy around Ethereum right now is whether ETH will switch to a PoS algorithm this year. Today, ETH is the most popular currency for GPU mining. However, the profitability of ETC in this sense is not much different. If ETH takes its principle Changing from PoW to PoS, its existing miners will be forced to look for other tokens, and ETC may be the first candidate. Anticipating this, the ETC team aims to show the community that despite years of demarcation, ETC is still The original Ethereum. And if ETH chooses to change the principles of network consensus, ETC is likely to claim to be the successor to Ethereum’s PoW mission. If these assumptions are correct, ETC rates are likely to increase in the near future,” Voskvitsov explained.
Post time: Jul-21-2022