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RE: Basic Guide: Mining Ethereum with RX400/RX500 GPUs

in #mining • 8 years ago

Thanks for sharing! I recently discovered really interesting story explaining why Ethereum Classic may surpass Ethereum. It would be interesting to find out what would be your opinion on this subject matter. Here it is:

As an early Ethereum supporter, I've come to the difficult conclusion that Ethereum Classic will eventually surpass Ethereum in market capitalisation in and around the Casper transition.

Why?

I've empirically discovered (for myself) that the economics of PoW are fundamentally different than PoS.

Ethereum will excise all it's miners during the Casper transition and this will collapse its internal crypto-economy that drives its current market-cap.

Since Ethereum Classic intends to maintain PoW (even if hybridized), it will not suffer the marketcap excision of (2).

During (2), the miners will likely migrate en masse to Ethereum Classic (rather than forking) resulting in the transitive transfer of the lost ETH value into ETC (via the crypto-economics of mining).

On the basis of (1), (2), (3) and (4) and assuming nothing else environmentally changes, it's clear that this value transfer will occur. I've personally re-positioned my own holdings based on this reasoning (which was a painful decision, since I was one of those blockchain developers who berated ETC during the DAO fiasco).

Is there anything that could change this inevitable outcome?

Unlikely. Suppose that dapps like Augur or Swam City become massive successes. The demand-side liquidity they induce should offset the downside from (1)-(4), except that:

Any dapp success or innovation on Ethereum can (and most likely will) be duplicated on Ethereum Classic, since it's all open sourced.

The only scenario I see that can keep Ethereum beyond Ethereum Classic is the promise of mass scalability from Casper & Sharding. This means a dapp that cannot be computed on the Ethereum Classic network. Though this could happen (assuming casper + sharding were astounding technical successes), this scenario is far ahead into the future and all of the above still needs to occur before then.

On this basis, Ethereum Classic is likely to surpass Ethereum during the Casper transition. What are your thoughts on this?

8 years ago in #mining by
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     8 years ago 

    First and foremost, I think what you read makes a lot of sense. I am not an expert in this field, but I will share my layman perspective/opinion. The 2 perspectives are:

    1. As a small time investor: I look at this much like investing in the stock market... so generally what the technology had achieved, what is in the roadmap, and who is supporting it by funding it and/or innovating with it. With Enterprise Ethereum Alliance backing it and the ongoing innovation such as UN using Ethereum to distribute funds in a large scale test, I will likely bet on ETH.
    2. As a hobby miner: I do not and never will have enough stake to play when the transition happens. I think of it as ETH growing up to become a big boy's game. As a small boy, the logical course of action would be to switch to ETC or other altcoins so that GPU mining may remain as profitable as possible.
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