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. Many are in trouble, local media reported, quoting entrepreneurs and mining enthusiasts.
Cryptocurrency Miners Affected by The Merge, Vietnam Report Reveals
VN Express noted in a report that crypto miners in Vietnam have suffered huge losses with their mining rigs after switching to the second largest cryptocurrency by market capitalization to a more energy-efficient framework.
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. It significantly reduces the amount of energy burnt to validate transactions.
The shift to new consensus mechanisms means that powerful coin mining hardware is no longer needed to perform complex mathematical calculations and such equipment has become virtually useless.
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:
Given that most Vietnamese crypto miners were mining Ethereum, many are in trouble.
“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 the mining pools are closed, so the miners can no longer mine and have to shut down their rigs,” he explained. The largest Ethereum mining pool, Ethermine, has announced that it is shutting down its servers and has informed miners that their dues will be transferred within days.
Large crypto farms have been hit the hardest, according to a miner from Dong Nai. “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 a mining rig. I do not know how to recover from this,” shared an amateur miner from Binh Dinh. The man wanted to start minting other coins, but abandoned the plan to make a profit after anticipating that the electricity bill would be too high.
“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.