Vietnamese miners complain about the loss of business as they transition Ethereum to a consensus mechanism that does not require the energy-intensive computing they were offering They have expressed. Many are troubled, local media reported, quoting entrepreneurs and mining enthusiasts.
Cryptocurrency Miners Hit By The Merge, Vietnam Report Reveals
Crypto miners in Vietnam are now suffering heavy losses as mining rigs shut down after the second largest cryptocurrency by market cap switched to a more energy efficient framework, VN Express noted in a report.
This week, Ethereum (ETH) changed its protocol from proof-of-work (PoW) to proof-of-stake (PoS) in an upgrade called “The Merge,” completed on Thursday. This greatly reduces the amount of energy consumed to validate transactions.
The move to the new consensus mechanism meant that powerful coin minting hardware to perform complex mathematical calculations was no longer needed, making this type of equipment largely useless.
As a result, “goodbye Ethereum,” “no more chances,” and “sell off the rigs” are now the most common phrases seen in online groups of Vietnamese crypto miners, the English-language news edition wrote this weekend, adding.
Given that the majority of crypto miners in Vietnam were mining Ethereum, many are in trouble.
Ngoc Can, administrator of a social group on crypto mining, said, “We all knew this day was coming and we have been preparing for it, but some of us were hoping that “The Merge” would happen later and a little more mining We hoped we could do it.
“All mining pools have been closed, so miners can no longer mine and have to turn off their rigs,” Can explained. Ethermine, the largest Ethereum mining pool, announced that it was shutting down its servers and informed miners that their outstanding balances would be transferred within a few days.
According to Don Nye’s miners, large crypto farms have been hit the hardest.” I started mining 4 years ago and expanded my farm after breaking even. I have not recouped my new investment and it is almost impossible to sell it,” he said, revealing that many of his colleagues have also collapsed.
“I spent my family’s savings on mining equipment. I don’t know how to recover from that,” confided an amateur miner from Binh Dinh. The man wanted to start mining other coins, but gave up on the project, estimating that electricity costs were too high to make a profit.
“Many Vietnamese crypto miners also hope that Ethereum will be split into new branches that will still allow for a PoW mechanism, but that prospect is unclear at this time.” The article concludes.
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