Ethereum Proposal is Primed to Delay ‘Difficulty Bomb’ and Reduce Block Reward

John Medley

Earlier today, 14 Ethereum developers met over video conference to discuss changes to the proposed ‘difficulty bomb’ and block reward.

They agreed to support the EIP1234 that would decrease block reward from 3 ETH to 2 ETH as well as delay the ‘difficulty bomb’. The proposed EIP1234 would be added to the Constantinople upgrade, scheduled for October.

The postponement the difficulty bomb – a feature designed to increase the difficulty of mining rewards, making mining less attractive – has been received well by the community despite the fact it is considered a controversial topic - especially for miners invested heavily in hardware.

Many traders are in favour of the 2 ETH block reward as it reduces Ethereum’s inflation rate which is currently greater than that of Bitcoin.

It is thought that the reduced mining reward would constrain the supply, in turn reducing the selling pressure from miners. According to a Twitter thread from Eric Conner, the Ethereum network has paid $6.6 billion to miners over the past 365 days:

Some members of the community, however are not happy with the lack of discussion. Ethereum miners and investors who were present at the previous meeting regarding the Constantinople upgrade were excluded from today’s meeting. Some have seen this as a controversial decision, because the difficulty bomb and block reward reduction is likely to have a greater impact on miners than developers.

With over a month until the Constantinople upgrade, it remains to be seen whether the wider community of investors, traders, miners and developers will rally in support of EIP 1234.

Max Keiser: Bitcoin Dominates Altcoins in Cryptocurrency Debate

  • Keiser Report host Max Keiser claims that bitcoin continues to dominate altcoins and provide more investor security.
  • Keiser predicted bitcoin's market dominance and hash rate to reach 99 percent within the next five years. 

Max Keiser, host of the Keiser Report, claims that bitcoin has no cryptocurrency rivals and that most altcoins fail to live up to the standard set by BTC. 

Speaking in an appearance on London Real, Keiser dismissed the possibility of a new crypto-asset emerging and eating into bitcoin’s market dominance. 

He said, 

There’s no coin out there that can do what Bitcoin doesn’t do already or will be able to do shortly. What you’re buying with Bitcoin is security.

Keiser continued, arguing that hard forks of bitcoin such as bitcoin cash and SV lack security compared to the original BTC.

The avid bitcoin supporter also referred to several altcoins as being “pure exit scams,” intentionally designed to manipulate investors. 

He explained, 

They have huge ‘pre-mines’ that the founders are selling or dumping and making a lot of money. A lot of people are losing money, and they have no use case. So like a Ripple or an Ether, even, is an exit scam. It’s to be avoided. Those are the top coins.

Keiser predicted that bitcoin’s market share and hash power, sitting at 65% and 85% respectively, will continue to rise relative to the market. He claimed that within five years bitcoin will account for 99% of all cryptocurrency hashing power and market capitalization. 

Featured Image Credit: Photo via Pixabay.com