The market can be pretty good for sorting out good ideas and trashing dumb or outdated ideas. When a great new idea makes its mark on the market, that’s called “disruption” because someone’s getting knocked over. The day the car was invented was pretty crappy for the carriage driver’s guild. The Pony Express only existed for a year and a half before the telegraph put it out of business.
In other words, when you create something new and brilliant, and the market recognizes that, anyone clinging to an older, weaker business model is going to get left behind.
Sometimes, those has-beens get so entitled that they have the nerve to demand the rest of the world stop right where it is so that they can keep their cushy setups.
And here’s where we come to Ethereum (ETH) miners, who are going to find themselves looking pretty irrelevant come this autumn. That’s thanks to the “Merge,” where the Ethereum mainnet will pivot to proof-of-stake (PoS) validation and leave the miners who perform proof-of-work (PoW) validation behind.
Those miners are (understandably I guess), not cool with the idea. But it’s left investors with a couple of issues to grapple with in the meantime…
Look Who’s Pushing for the ETHW Fork
Justin Sun – the Ponzi-schemer who brought us the TRON “algorithmic stablecoin” dumpster fire – is charging hard to for a “consensus fork” off of Ethereum’s PoS update. He’d like to see a parallel, PoW Ethereum exist forever – a token they’re calling ETHW.
And let me be clear – ETHW doesn’t exist yet. It’s still vapor. You can speculate on a version of it (on Poloniex, of course) but it’s not concrete.
Of course, that platform is going to be obsolete from day 1, so that’s a “great” start right there.
Now, I’m not surprised to see Justin Sun involved in such a terrible idea. I’ve been screaming for months about what a terrible idea the TRON “ecosystem” is – the only difference between it and the TerraLuna disaster this spring is Sun managed to recapitalize his Ponzi scheme in time.
If Justin Sun is anywhere near a project, run the other way. That’s exactly what I plan on doing if this hard fork actually goes through. If Sun and his allies actually succeed in getting this fork over the finish line, I plan to sell any ETHW tokens immediately.
I mean, I won’t turn away free money, even from Justin Sun. But I’ve got 100% of my liquid net worth in digital assets, and I don’t make “bets.” I won’t put a single damn satoshi, deci, or nickel at risk for Justin Sun and a bunch of ETH miners – and neither should you.
The whole thing, if it does manage to come into existence, smacks of a retail trap. But the most telling thing about this initiative take me back to my earlier point about technological progress.
Who are Justin Sun’s biggest allies in trying to fork Ethereum?
Is it Ethereum developers? No, they’re the ones trying to bring ETH to proof-of-stake and rightly so. Is it the network users or ETH investors? No, because in the long run they stand to cash in on a more efficient ETH platform.
No, Sun’s efforts are supported by ETH miners, who’s function will be obsolete with proof-of-stake validation. One of the big advantages of proof-of-stake is that it saves money on fuel and semiconductors used in mining computers.
These miners already have a lot of semiconductors. I guess Pony Express horses were expensive too, but if you can’t provide what users need and want, then too bad. They have no business trying to hold Ethereum back just so that they can get paid. And ultimately they won’t hold Ethereum back – Vitalik Buterin himself basically said the ETH mainnet will be just fine even if ETHW manages to whine itself into existence.
And by that same token, Justin Sun’s promise to feature his own Algorithmic stable coin feature on the forked PoW network just comes off like a “what’s the point?” greatest-hits album.
Luckily, most people don’t seem to be taken in by this nonsense. First day speculative trading volume for Sun’s ETHW project on his Poloniex exchange was $3.6 million, compared to one-day volume for ETH itself at over $16 billion.
That’s with all the hype of the attempted split behind the PoW offshoot. It looks like the market isn’t interested, and this could be a huge sign that PoS will only get more popular going forward. If it can meet the needs of users, than more power to it. Meantime, should any ETHW tokens find their way into your wallet, pocket profits.