Why is Ethereum Hard to Dig (Does Ethereum Dig Less and Less)

Why is Ethereum Hard to Dig? Why is Ethereum Hard to Dig? Why is Ethereum difficult to dig? Let’s take a look at its mining machines and pools Firstly, the mining difficulty of Bitcoin is greater than that of gold

Second, Ethereum’s maximum computing power is 34.5PH/s (about US $13), which makes it difficult to trade or transfer Cryptocurrency when prices fluctuate. Due to the fact that Ethereum is not as valuable as other virtual assets, there is almost no room for the price of Bitcoin to rise. However, because the price of Bitcoin is fixed and growing, the quantity of Ethereum excavated is not large, which has led to a decline in the price of Ethereum and even a “death spiral”. If measured by the cost of mainstream mining machines in the current market, then Ethereum is more easily mined, especially for ordinary investors, which is more complex. The difficulty of mining Ethereum will increase over time; Another reason is that Ethereum cannot be effectively mined (such as BTC). 2、 How does ETH receive block rewards? Firstly, it should be noted that ETH needs to pay 2 transaction fees to become one of the only trusted verification nodes in the entire network. In this way, start each decimal point in the PoW consensus algorithm from 0 to 1. This process is called network upgrade. According to official data, approximately 1 million new transactions are generated and processed every four years. However, many people have expressed concerns about this issue, such as the low difficulty of mining with Ethereum. However, based on the current market situation, only about 20% of the time can these new scripts be used to generate new transactions, but this proportion is still too high. This creates a problem of high difficulty in mining. 3、 Why is Ethereum Easy to Dig? First of all, we must understand that miners must buy ASIC chips in order to make profits. They usually buy the Shenma M20 series or Ant S17Pro from Bitmain. Although many competitors have recently launched their own graphics cards, including TSMC A12, their power consumption is very limited. Moreover, such situations often occur with Ethereum, where users can only choose what they want to play with when they want to participate – CPU, memory, hard disk, and so on. Once a block is dug out, the entire network will experience congestion, and some smaller computers will also be affected, ultimately resulting in the dug out Ethereum not being able to continue working normally. 4、 How does ETH dig? The first generation blockchain system adopts the POW consensus mechanism. This is a distributed ledger technology based on POS algorithm, which is a new digital economy model composed of multiple shards to ensure the stability and security of the system as a whole network architecture. At the same time, Ethereum is also a blockchain system based on this technology, which has a decentralized feature: it allows anyone to create a smart contract without trusting a third party, and can achieve transactions without relying on intermediaries

Is Ether digging less and less?

Editor’s note: This article is from Caiyun Blockchain (ID: cybtc_com) and is authorized to be reprinted by Daily Planet

In the past 12 months, the mining activities on the Ethereum network have increased. However, according to ETH.TOP data, currently only about 9 million tokens of Ethereum have been mined – which means there are tokens worth over $2 million in circulation. If we compare these data as an indicator, then from January 2017 to the beginning of 2019, this number reached about 30 billion ETHs. Although this number is still on the rise, there is still some gap compared to the level in 2018. How much will Ethereum produce each year? Based on the current market value, Ethereum accounts for about 70% of the global Bitcoin computing power. As the price of Ethereum soared to a record high, its market share was also gradually declining. At the end of 2017, when the price of Ethereum reached a historical high of nearly $2, its P/E ratio was more than 10%. During the first and second quarters of 2018, ETH prices rose above $6, $1, and $10, respectively. However, despite the recent significant increase in Ethereum and the significant acceleration of its growth since May this year, there has still been no similar situation. So, is Ethereum digging less and less? For investors, they believe that holding Ethereum is no safer than holding Bitcoin

First of all, because of the high transaction costs in the Ethereum network, many people turned to the Cryptocurrency field and began to invest in projects such as Ethereum; Secondly, because some projects use a method called “pledge” for investment, they choose not to sell their assets but to directly purchase Ethereum Finally, due to the DeFi craze, many users have invested ETH in other protocols, such as decentralized exchange Uniswap. However, in the long run, this situation is unsustainable and very dangerous – as it may cause losses to ordinary investors and even affect their fund management.