To compare – Ethereum’s mining had its memorable day on July 30, 2015, when 39,000 coins were produced. Now, the creation of new ETH coins on a daily basis is in constant decline, drastically since December last year, when a drop of 20,000 ETH coins was recorded. On Saturday, February 10, the number of mined coins was really disappointing, only 13 370 ETH. And the mining rewards went equally down, difficulty went up, more than ever.
Ethereum, like other leading cryptocurrencies in the last couple of months, found itself in a massive crisis, considering that the second-ranked cryptocurrency by the coin market cup has made enormous efforts to maintain its vice championship position. It was not easy. It still not. For the last few days, Ethereum miners are confronted with the lowest mining rewards ever, which can be caused by the increased difficulty of mining.
In the summer of last year, a leading team of Ethereum developers agreed to increase the difficulty of mining ETH coins, called the “difficulty bomb” that should be postponed until the launch of several times delayed Constantinopole hard fork. The goal of this movement is to improve the ‘Proof of work’ mining, necessary for obtaining a reward, which automatically leads to a decrease in the daily intensity of the mined ETH coins.
ETH Ice Age
A future fork will be tracked by a difficulty bomb, which will require the use of more substantial computer power for the same rewards as ever. This pushes miners to invest more, and thus prevent inflation, which goes to the investors’ benefit. It also reduces the risk that miners will take ETH by using the PoS (Proof of Stake) algorithm. PoS serves to pay dividends to investors for just having a “stake” in coins on the network, and the amount depends on how much coins they have inserted.
In the same light of favoring ‘staking,’ the Ethereum development team plans to perform Constantinople and implement ‘thirdening’ that will reduce mining rewards from three to two coins. However, many miners remain on the network, hoping that a hard fork, which has been delayed several times, will be again moved to an unknown date in the future. Current miners could have the most significant benefits of mining coins at this time, judging that the inevitable time of hard fork is undoubtedly coming.
Hard fork delay is an excellent opportunity for current ETH miners
And if it managed to maintain its position on the market somehow, Ethereum experienced severe crashes and shocks in the past year. ETH development team is working hard to stabilize and maintain a leadership position in the crypto world. However, the question arises whether the ICO-related predicaments and the reduced demand for ERC-20 based tokens can have longer-term implications for the second-largest digital currency.