Miners in Vietnam have expressed grievances over the loss of business following Ethereum’s transition to a consensus mechanism that does not require the energy-intensive computing they were providing. Local media quoted entrepreneurs as well as mining enthusiasts to report that many are facing difficulties.
Report: Cryptocurrency miners hit by The Merge. Vietnam Report
Vietnam’s crypto miners have suffered heavy losses with their mining rigs now shut off after the second-largest cryptocurrency by market capitalization 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) with an upgrade called “The Merge,” which was completed on Thursday. This significantly lowers energy required to verify transactions.
Migration to the new consensus mechanism has meant that strong coin minting hardware will no longer be required to do complex mathematical computations, and such equipment is almost obsolete.
As a result, “goodbye Ethereum,” “no more chances,” and “sell off rigs” are currently the most seen phrases in online groups of Vietnamese crypto miners, the English-language news edition wrote this weekend, adding:
Many of the cryptominers in Vietnam were already mining Ethereum.
“We all knew this day will come and we have been prepared, but some hoped ‘The Merge’ would happen later so we could mine some more,” Ngoc Can, administrator of a social group on crypto mining, has been quoted as saying.
“All mining pools have closed down, so miners can no longer mine and have to turn off their rigs,” Can explained. The largest Ethereum mining pool, Ethermine, announced it’s shutting down its servers and informed miners their unpaid balances will be transferred within days.
According to Dong Nai, large crypto farms were the worst hit. “I started mining four years ago and expanded my farm after breaking even. I haven’t recouped my new investment and it is almost impossible to sell it,” he said, revealing that many of his colleagues have collapsed, too.
“I spent my family’s savings on the mining rig. I don’t know how to recover from that,” an amateur miner from Binh Dinh shared. After realizing that electricity costs would prohibit him from making a profit, he decided to give up his dream of minting coins.
“Many Vietnamese crypto miners also expect that Ethereum will be split into a new branch that still allows PoW mechanism, but that prospect is uncertain at this point,” the article concludes.
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