The Ethereum community’s transition from a proof-of-work (PoW) consensus is prone to flood the crypto trade with out-of-work ETH miners, inflicting extreme disruption to all PoW tokens.
Talking to Cointelegraph, Andy Lengthy, CEO of Bitcoin miner White Rock believes the upcoming Ethereum Merge will pressure PoW miners to search for greener pastures, equivalent to different PoW blockchains, and thus “swamp” different cash — growing mining problem and lowering profitability, stating:
“As GPU miners level their {hardware} at different chains their problem will enhance inflicting decrease returns and splitting the reward amongst extra miners.”
Lengthy added that the migration will possible pressure many crypto miners to surrender and abandon their costly mining rigs.
“Hashrate will movement to various GPU PoW cash, and plenty of miners will merely surrender and attempt to dump their farms of playing cards,” he stated.
“Some miners will attempt to promote their Excessive-Efficiency Computing (HPC) or GPU cloud companies and can possible fail since there’s an excessive amount of capability chasing a restricted quantity of demand,” he added.
GPU costs and demand have already been declining on account of falling Bitcoin (BTC) costs, resulting in some playing cards promoting for under the checklist worth and sellers struggling to dump their mining rigs and playing cards for inflated costs.
No matter what occurs after the Merge, Lengthy says he’s “not strongly opposed” and is to see “how market forces play out.”
“After I was constructing GPU farms in 2017 the Merge was cited as an imminent risk and would have been way more impactful then.”
“There’ll at all times be GPUs mining some GPU optimized chains, however I doubt we are going to return to the degrees of income seen in ETH proof-of-work at its peak ever once more.”
Ethereum is anticipated to transition to a proof-of-stake (PoS) mechanism between September 10-20 and is taken into account probably the most vital upgrades within the crypto market this 12 months.
Associated: Largest Ether mining pool Ethermine opens new ETH staking service
Nonetheless, there are nonetheless many cryptocurrencies set to proceed alongside their PoW path, together with Bitcoin (BTC), Litecoin (LTC), and Bitcoin Money (BCH), in addition to Ethereum Traditional (ETC), Monero (XMR), Zcash (ZEC) and Ravencoin (RVN).
White Rock Administration is a Switzerland based mostly digital asset expertise firm that mines cryptocurrencies via information centres situated in Texas and Sweden.
