Mining Ethereum? Reasons Behind ETH Price And Expectations

Hello, welcome to Coined Times with Maria
Matic. If you are mining Ethereum,
or you mined or invested in Ethereum,
like many of my friends, you are
probably asking around what’s happening
with Ethereum, did we touch the bottom,
what the price is going to be,
what are the news around Ethereum.
So, there are couple of important
things around Ethereum and
as you know we are in the bear
market but certain issues
are only related to Ethereum, like ICOs.
Billions have been
raised by ICOs for the tokens
built on Ethereum. There is a
theory saying that ICOs have
been selling-off the Ethereum in
order to fund their operations
or maybe for malicious reasons
because there are a lot of
competitors to Ethereum which
raised money, which raised Ethereum.
So, they can manipulate.
Although just a couple of them
could manipulate, like EOS
which raised 4 billion dollars
worth of Ethereum etc..
Bitmex Exchange did a research
about ICOs and the funds they
raised and how much they sold so far.
And according to Bitmex, ICOs already
sold the majority of what they’ve raised,
and majority of that they
sold in December and January.
Although this doesn’t cancel the
issue and problem with ICOs
and it’s not just Ethereum’s
problem, it’s going to be a problem
of other Blockchain-As-A-Service
platforms which
are not yet developed
like Ethereum and not
popular as Ethereum,
but I’m sure they are
going to have those kind
of problems as well.
But at least it’s comforting
to know that a majority of the
funds which ICOs have raised
have already been sold. The
other thing which is also
putting pressure on Ethereum
price is miners selling-off
their rewards in order to pay
for the electricity and to fund
their operations. But according
to Ethereum Foundation, when
they go Proof of Stake,
they expect that there’s not
gonna be this selling pressure
by the miners anymore because
basically they are not
going to have electricity cost.
So this will kind of offer
relief, but the Proof of Stake
is so far away, we don’t
even know when it’s going to happen.
Casper protocol has
been delayed, I don’t know
how many times, and that is
the other issue. The other
issue is the Time Bomb. So,
Difficulty Adjustment Time Bomb
which was set up in order to
disincentive Ethereum miners
from mining on the Proof of
Work blockchain and to go to
Proof of Stake blockchain.
So basically this Time Bomb
is supposed to take us to the
“Ice Age”, which was supposed
to happen around 2021. But
last October we had an upgrade
and hard fork in order to
delay it for maybe one more
year, and now in October we are
going to have another upgrade,
Constantinople, which will
also delay the Time Bomb for
one more year, and also the
proposal, which said that
rewards should be reduced to 2
ETH per block, was accepted.
So basically, miners will
receive 2 ETH per 1 block,
which will reduce transaction
cost, transaction fees, so
basically it will be cheaper to
send Ethereum through the
network, to do transactions.
This proposal is also kind of
good for investors because,
investors prefer if there is
less future issuance, and
this is particularly important
because Ethereum does not
have a defined issuance, doesn’t
have a total supply like
many other coins have. So this
is also unresolved issue.
But we have this certainty in
the next 8 months, because
the next upgrade is supposed
to happen in 8 months. I
expect that this upgrade bring
certain elevation to the
price. I’ve read somewhere that
on the 9th October the hard
fork is going to happen on the TestNet.
However, I’m not
sure, because I lost that
article, if it’s true or not,
but it’s supposed to happen
on a MainNet in October or
beginning of November. So,
there’s also been a partnership
announcement with Hyperledger,
kind of alliance. I guess
they are planing to lobby
together, because I don’t see
other reason for this alliance.
They are basically
competitors. Let me know what
you think and I would really
like to hear what is your
opinion on the future price
movements. I think that, if
there’s no other large market
movement, this upgrade
might elevate the price.
Let me know what you think, see
you soon, have a lovely day, bye.

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