Ethereum Merge hits graphic cards, but GPU-based mining is not dead

Ethereum Merge hits graphic cards, but GPU-based mining is not dead

Ethereum’s shift of its consensus algorithm from proof-of-work (PoW) to environment-friendly proof-of-stake (PoS) in an event called ‘The Merge’ earlier this week will result in sizeable graphic card (GPUs) dump and hit manufacturers such as Nvidia and AMD.

As The Merge has obviated the need to secure the blockchain network, GPUs are no longer needed on a mass scale and will go for a significant discount, experts said. However, this may not happen immediately as the GPUs can be deployed for a new Ethereum hard fork and mining other stablecoins.

“With the Merge on the cards for a long while now, I would imagine most miners would have planned ahead with alternative money-making schemes. But, once the flooding stops, it would revert to basically as it is now, unless the increased demand for GPUs drop, caused by more than just mining. Things like the extreme influx of using computers for entertainment and work purposes will continue as usual,” Raj Kapoor, Founder and CEO of India Blockchain Alliance, told Moneycontrol.

According to experts, there will be increased availability of second-hand GPUs that have been mined to bits.

With The Merge, the energy used to maintain the whole Ethereum network will drop by a huge 99.9 percent, which will result in a 0.2 percent decrease in world electricity use. However, not all ETH miners may want to give up their GPU exploits in favour of the more environmentally friendly PoS variant.

What is GPU-based mining?

The majority of crypto mining in the beginning, especially for Bitcoin and Ethereum, was done on basic CPUs for home computers but as demand increased so did the mining difficulty.

People then discovered that their GPUs were well suited to handle algorithms since these computer parts were actually intended to handle equations for 3D and physics rendering, which are identical to the equations in the blockchain algorithms.

Since GPU mining was far more efficient than using other types of mining gear, it signalled a major shift for the community.

While traditional CPUs were like blunt instruments when it came to mining cryptos, in contrast, GPUs were well-honed Samurai swords. They established a new benchmark since they were much more efficient than the previous technology.

EthereumPOW made for GPU miners

Despite Ethereum Classic already existing as a PoW alternative to the main ETH chain, a new hard fork called EthereumPOW (ETHW) was made for GPU miners.

A hard fork is a significant modification to the network protocol that makes previously invalid blocks and transactions valid, or vice versa. Simply put, a hard fork happens when nodes of the most recent version of a blockchain stop accepting older versions, leading to a permanent separation from the earlier network version.

The ETHW chain’s developers want to replicate the whole original ETH blockchain, including all of its currencies, NFTs, Dapps, and liquidity pools. However, the value of ETHW remains uncertain as there would be few Dapp operators and unlike Ethereum Classic, it is not backed by any stablecoin. Also, emulating the original Ethereum chain would be tricky since ETHW now contains the difficulty bomb, which will render GPU mining obsolete around 2023.

Even so, ETHW was able to secure the backing of BitMEX and Poloniex, two reputable crypto exchanges, as well as the inventor of TRON. Although ETHW has not yet been released as a token, its IOU worth is now trading around $9.09. IOU stands for ‘I owe you,’ which denotes that one party owes another one money.

Since the chain has not yet forked, the ETHW coin would derive from a possible Ethereum hard fork.

Mining for other cryptos

After The Merge, GPU miners will be looking elsewhere for opportunities, like mining some other coin which would still reward firms of graphics cards.

Ethereum is not the only coin that is mined decently on a graphics card. Beam and Ravencoin are actually similarly profitable at this time and though ETH mining has stopped, these will continue. While there will be increased competition to mine these coins, it would balance out eventually.

“Additionally, the companies that produce and distribute GPUs are already selling such items in bundles with other products to drive up their sales and profit margins,” Kapoor adds.

The much-anticipated GPU flood that would curb inflated pricing might be delayed since many GPU miners want to continue supporting Ethereum Classic, ETHW, or whatever PoW currency becomes more profitable.

Interestingly, in anticipation of the debut of the next generation, chip makers like Nvidia and AMD are now selling the majority of current-generation GPUs for less than the manufacturer’s suggested retail price (MSRP).

The impact of PoS can be reduced if PoW chains keep demand high

Anndy Lian, Chief Digital Advisor, Mongolian Productivity Organization, says that the ETH upgrade would be one of the big revenue misses by Nvidia and its stock has fallen nearly 20 percent since the previous quarter due to a slowdown in the gaming business and weakness in the global markets.

“The impact from the change to POS would be reduced if the forked PoW chains can keep their demand high, getting support from the big miners and backed by strong communities who believe that PoW is the core value. If this is executed properly with the support of Nvidia, this market push would surely put the listed company in a much better position,” Lian says.

More certainty for chip manufacturing companies

A Barron’s report quoted analysts led by Stephen Glagola at investment bank Cowen saying that The Merge will affect chip manufacturers whose graphics processing units have been employed in the process because Ethereum’s switch to PoS will eliminate the necessity for mining of Ether.

But a decline in mining is not necessarily negative, rather, it will provide companies manufacturing chips more certainty and eliminate the risk of demand that is blindsided by unstable crypto prices.

“For GPU suppliers Nvidia and to a lesser extent AMD, we view the upcoming Merge as a long-term positive for sentiment as it likely removes the risk of another painful crypto bang/bust cycle in the future,” said the Cowen team.

Source: https://www.msn.com/en-in/money/topstories/ethereum-merge-hits-graphic-cards-but-gpu-based-mining-is-not-dead/amp/ar-AA11Z7rn

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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TerraUSD price prediction: USTC is no longer a stablecoin but can it bounce back?

TerraUSD price prediction: USTC is no longer a stablecoin but can it bounce back?

Since its depeg from the US dollar, the TerraUSD cryptocurrency has gone through a “makeover”. Now known as TerraClassicUSD (USTC) and no longer a stablecoin, the coin is struggling to pick up, fluctuating between the $0.03 and $0.06 levels in July 2022.

Investor sentiment on the coin remains low, as concerns prevail about its trustworthiness following Terra Lana collapse, which caused some investors to lose over 90% of their funds. What do experts have to say, and what other factors shape TerraUSD price prediction?

What is TerraUSD?

TerraUSD (USTC; previously UST) is an open-source blockchain that hosts a number of decentralised applications (dApps) and developer tools within its ecosystem.

Originally, TerraUSD was an algorithmic stablecoin, a cryptocurrency that aims to maintain a 1:1 peg with the reserve currency they back – in UST’s case, the US dollar – through algorithms.

TerraUSD launched in September 2020 in partnership with Bittrex Global and was co-founded by Do Kwon, who is also the founder of Terraform Labs, a software development company behind the creation of the TerraLuna and TerraUSD sister coins.

Terra had a dual-token system that used the stablecoin and LUNC (previously LUNA), the protocol’s native staking token, to create and stabilise UST. LUNC was also used for governance and in mining. UST coins were minted by burning LUNC tokens and could also be swapped for LUNC.

According to its whitepaper, UST was meant to have the features of a “price stable cryptocurrency that combines the benefits of both fiat and bitcoin”. This meant that, ideally, UST had to be worth $1 at all times. However, on 9 May 2022 after several years of holding its value against the US dollar, the stablecoin collapsed, or de-pegged.

The token ended up losing over 80% of its value in less than a week and has never managed to recover from the massive drop. In addition, the cryptocurrency’s de-peg had a whirlpool effect on the cryptocurrency market, dragging down other cryptocurrencies including LUNC (previously LUNA) and BTC.

Following UST’s crash, Kwon proposed forking Terra to a new chain that would entirely cut out UST and focus on decentralised finance (DeFi) applications built on the Terra blockchain. The proposal saw the creation of a new layer-1 Terra blockchain without its algorithmic stablecoin. Meanwhile the old blockchain was renamed from Terra Luna (LUNA)  to Terra Classic (LUNC) and the new blockchain would be called Terra (LUNA).

On 25 May 2022, the proposal was passed. Two days later Terra started to operate from a new blockchain. The UST token was rebranded and is currently known as TerraClassicUSD (USTC).

USTC is a decentralised stablecoin pegged to the US dollar and built on the Terra Classic blockchain. Stablecoins aren’t supported on the new LUNA blockchain launched after the cryptocurrency fork. Instead, USTC is supported by LUNC, whose purpose is to maintain the stability of Terra’s stablecoins.

The total supply of USTC tokens exceeds 10bn, with over 9.828bn tokens currently in circulation, according to data provided by CoinMarketCap,as of 14 July. The USTC cryptocurrency currently has a market capitalisation of over $337.9m and is ranked 87th biggest token.

The aftermath of the TerraUSD collapse

UST lost its peg to the US dollar on 9 May 2022 when the token dipped by 84.5% falling from past $0.9 highs on 8 May to $0.154 by 13 May.

On 25 May, UST saw its first tiny gains when Terra announced that its community voted to pass the proposal for the forking of the blockchain, gaining around 67.5% of its value and surging to $0.09463 from $0.05648 lows four days earlier.

This also meant that after 25 May, UST no longer existed. USTC replaced UST but was no longer a stablecoin.

USTC/US chart, November 2020 – July 2022

However, a positive run did not last long as the token’s value continued to decline and by 8 June had reached its lowest point of just $0.009796 – a 99% decline since its 8 May $0.9964 high.

At the time, the blockchain was celebrating the launch of Terra 2.0  and its one-week anniversary, noting that many dApps had returned to the platform and were “up and running”. However, investors were not as bullish on the cryptocurrency as its price continued to fluctuate between the $0.06 and $0.09 levels.

According to Kwon, the platform has also been struggling with a lot of “misinformation”, which could have further contributed to USTC’s bearish price in June.

In mid-June, Kwon was accused of having cashed out $2.7bn in the months leading up to UST’s collapse, however, the entrepreneur denied all allegations.

“This should be obvious, but the claim that I cashed out $2.7bn from anything is categorically false,” Kwon said in a tweet.

“To reiterate, for the last two years the only thing I’ve earned is a nominal cash salary from TFL [Terra Form Labs], and deferred taking most of my founder’s tokens because a) didn’t need it and b) didn’t want to cause unnecessary finger pointing of ‘he has too much’.

“Hope that’s clear – I didn’t say much because I don’t want to seem like playing victim, but I lost most of what I had in the crash too.”

By 29 June 2022, the token had managed to surge to $0.0811 following the announcement that SafePal Software and Hardware Wallet had started to support Terra 2.0 and LUNA tokens.

Some big news followed on 6 July 2022 when Soil Protocol, a non-fungible token (NFT) infrastructure built for Terra 2.0, announced its launch. The platform allows people to develop NFT projects without having to write smart contracts. Since reaching $0.0811, USTC fell back to $0.03443 on 14 July.

Analyst outlook on USTC

“The collapse of UST gave a wake-up call for many,” said Anndy Lian, chief digital advisor at Mongolian Productivity Organisation and the author of Blockchain Revolution 2030, told Capital.com.
“It has also helped many understand more about stablecoins and how they are designed to hold a steady value pegged to a fiat currency, and that not all stablecoins are stable by default.”

According to Lian, cryptocurrencies are in dire need of a set of rules that will help and lobby crypto rules on a global level.

“It is important to impose strong regulations before it poses more severe financial risks as the market grows bigger over time. I must emphasise again, that the regulations must be made independently and catered to the fast-moving crypto environment, not copy existing rules to crypto.”

Raullen Chai, CEO and co-founder of IoTEX, noted that very few people are bullish on LUNA and USTC.

“Since people are already losing faith in LUNA and UST (and even all algorithmic stablecoins), it is unlikely that they will survive this bear market,” he told Capital.com.

Chai said he remains optimistic about other areas of cryptocurrency markets in the long run, including “store-of-value coins such as Bitcoin and Ethereum”, and “MachineFi that is about connecting the real world into the crypto world or Web3 to address real problems and provide users with real value”.

Lian added that because USTC is still listed on several tier-one exchanges such as Binance, FTX and Kucoin, it means there are people who are still hopeful that the cryptocurrency can make a comeback. However, he urged investors to pay more attention towards projects that are building on the Terra blockchain.

Chai warned that “all cryptocurrencies are vulnerable to crashes as are all stocks.”He added:

“In crypto, as in any other business, the strongest projects with real development and solving real-world problems will always have a better chance of surviving an extreme bear market. In crypto, bear markets have a positive side which is the flushing or purging of bad projects.”

TerraUSD price prediction: 2022-2030

Despite recent bearish price action, algorithm-based forecasting service WalletInvestor gave a bullish TerraUSD price prediction.

As of 14 July, the site called USTC is “an awesome investment”. According to the website’s future USTC price prediction, the token could reach $0.376 in 2023 and jump to $1.671 by 2027.

DigitalCoinPrice supported the positive TerraUSD price prediction, but projected a much slower pace of growth in the following years. Its TerraUSD price prediction for 2022 showed that the cryptocurrency could average at $0.0515 by the end of the year.

The website’s TerraUSD price prediction for 2025 suggested that the coin could average at $0.0729, surpassing the $0.10 barrier by 2028, averaging at $0.12 in that year. Its long-term TerraUSD price prediction for 2030 indicated that the cryptocurrency could average at $0.19 during the year.

Note that price predictions can be wrong. Forecasts shouldn’t be used as a substitute for your own research. Always conduct your own due diligence. And never invest or trade money you cannot afford to lose.

 

 

Original Source: https://capital.com/terrausd-token-terraclassicusd-price-prediction

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Cryptos crumble but VCs remain gung-ho on future prospects

Cryptos crumble but VCs remain gung-ho on future prospects

Venture capitalists (VCs) have poured billions into crypto and blockchain startups this year, especially into the Web3 and Ethereum layer-2 scaling solutions space, despite apparent overall bearish sentiments.

According to a report compiled by financial services and investment management firm Galaxy Digital, Venture Capitalists (VCs) have invested over $10 billion in crypto startups in the first quarter of this year.

Just earlier this week, VC giant Andreessen Horowitz announced the close of a $4.5bn crypto fund that focuses on Web3 startups.

Also, a group of former executives from Binance, one of the largest global cryptocurrency exchanges, announced a $100-million venture fund called Old Fashion Research earlier this week, to bring greater crypto adoption to growing markets like Latin America and Africa.

Singapore-based VC firm NGC Ventures also launched a $100-million fund dedicated to high potential Web3 projects and metaverse economies.

According to experts, blockchain and not crypto, is the underlying reason for these investments, with crypto being one of the use cases of the blockchain. The possibilities of new use cases, Web 3.0, and accelerated adoption of blockchain technology – all add to the uptick in investments with scale, growth, and returns all on the horizon.

Roderik van der Graaf, Founder of Lemniscap, says the high degree of market volatility that crypto markets are currently experiencing can elicit fear among some investor categories and undercut overall ecosystem sentiment in the short run. However, VCs generally view the market landscape with a wider aperture and execute a consistent, measured approach to building their portfolios. Usually, a foundational market thesis guides their investment rationale.

van der Graaf, the founder of the investment firm specializing in crypto and blockchain technology, added that market downturns do not undermine this thesis in the short term, and in fact, can actually serve as a long-term cleansing force, recalibrating the market equation with fundamentals rather than unfounded collective psychology.

Some of the best projects will emerge during these testing times, and Lemniscap will continue to back high-potential startups as they evolve into high-performance protocols and platforms, said van der Graaf.

Jenny Zheng, Business Development Lead for Bybit NFT Marketplace and co-founder of Blockcast Ventures, said VCs invest more during a down market and grow them in the bull market because in an upward market everything is overpriced, especially, in the crypto world.

“When it goes up, it is like 100 times, when it goes down, it could be down by 99 percent, so the entry point is much more important compared to the traditional finance world,” he says.

Zheng further says that in crypto, there are always new things coming out, from ICO IEO IDO INO to Gamefi, Defi, and NFT. “Following the new trends and getting involved at an early stage is the key. VCs are following the trends too. Defi, Gamefi, and NFTs are the top choices and they are here to stay for many years to come,” according to him.

Sam Kim, CEO of Sukuma Ventures and founder of Gochapaa, a crypto wallet based in Kenya, says the main reason for VCs pouring investments into blockchain companies is because of investors’ enthusiasm to search and deploy fresh capital into innovative technologies and frontier markets where the innovation adoption is still at its infant stage.

“Despite the growing concerns in capital markets from the hawkish sentiment of the US Fed and ongoing conflict in Ukraine, the search for growth is never-ending,” Kim says.

Anndy Lian, Chief Digital Advisor to Mongolian Productivity Organisation, says other asset classes are also not doing well and some of them might take a much longer time for recovery. Crypto, on the other hand, has been proven to recover relatively faster.

“Secondly, blockchain and crypto are still the talking points in the tech industry. The future growth is very promising. I see with my own eyes that traditional fintech companies are rebranding themselves into crypto, jumping onto the bandwagon,” he says.

Lian says the number of projects will surely increase given the huge influx of new money with NFTs and Game-fi continuing to be their favorite options.

“We are not only talking about investors putting their money into companies in the big old economies. Investors are heavily pouring into Cambodia and Kenya too for instance. We are seeing good innovation at work in the crypto space,” Lian says.

Raj Kapoor, the chief advisor of crypto advisory firm Acryptoverse, says those enjoying the party are blockchain technology upstarts, trading platforms, Web3, and even the metaverse.

“Founders are now in a position to pick and choose investors because so much capital is looking to invest in these companies. As a result, founders can take advantage of investors that offer more than just money,” Kapoor says.

Jawad Nayyar, co-founder of Pakistani fintech firm PropTech, says over the last five years, NFTs and cryptocurrencies have gone from a Ponzi scheme to a gambling tool and a highly volatile asset to now finally being recognized as a legitimate virtual assets of value.

“In times of monetary expansion, high inflation, and a huge currency devaluation, the private sector now considers cryptos as a hedge against such economic adversaries,” Nayyar says.

As seen in the early stages of Web3, not all experiences make sense or will work with brand longevity, said Michael Gaizutis, founder and CXO of design agency RNO1. However, by taking that next step and investing in great design partners, investors will feel more confident and users will feel more central to the concepts they take part in, he added.

 

Original Source: https://www.moneycontrol.com/news/world/cryptos-crumble-but-vcs-remain-gung-ho-on-future-prospects-8600621.html

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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