The Ethereum merge is set to take place in the next few days, and White Rock’s CEO believes it will lead to other coins experiencing miner growth.
The Ethereum network plans to move from a Proof of Work (PoW) consensus to a Proof of Stake (PoS) mechanism later this month. The move is designed to upgrade the Ethereum blockchain to make it faster, more scalable, and less costly for transactions.
However, Andy Long, CEO of Bitcoin miner WhiteRock, said in a recent interview with Cointelegraph that the shift will likely result in a flood of unemployed ETH miners into the crypto industry. .
Long said Ethereum miners would be looking for greener pastures following the merge event, which would overwhelm other coins, increase mining difficulty and reduce profitability. I would. He added it.
As GPU miners point their hardware to other chains, the difficulty increases, the revenue drops, and they distribute the rewards to more miners. They would simply give up and try to sell off their farm of cards.”
The CEO believes the shift will likely force some cryptocurrency miners to give up and abandon their mining rigs. he added it.
Some miners try to sell high-performance computing (HPC) or GPU cloud services, but they may fail because they have too much capacity to keep up with a limited amount of demand.
Over the past few months, GPU prices have fallen, which correlates with the price declines of Bitcoin and other cryptocurrencies. As a result, some companies are selling their rigs below list price, while sellers who have maintained normal prices are struggling to offload mining his rigs and cards.
Despite the imminent merger, Long said he would be interested to see how market forces play out over the long term. He said;
When I was building a GPU farm in 2017, Merge was listed as an imminent threat and would have had a much greater impact than it did then. GPUs will always be there, but I don’t think we’ll ever get back to the revenue levels we saw with ETH’s proof of work at its peak.”
The Ethereum merge event is scheduled to take place September 10-20 and is considered one of the most important upgrades in the cryptocurrency market in 2022.