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The move away from Proof of Work (PoW) consensus on the Ethereum network could flood the cryptocurrency industry with unemployed ETH miners, causing serious disruption to all PoW tokens.
Andy Long, CEO of Bitcoin miner WhiteRock, said in an interview with Cointelegraph that the upcoming Ethereum merge will allow PoW miners to join other PoW blockchains such as It says it will be forced to look for greener pastures, overwhelming other coins, making mining more difficult and less profitable. :
As GPU miners point their hardware to other chains, the difficulty increases, the returns decrease, and the rewards are distributed to more miners.
Long added that the shift will likely force many cryptocurrency miners to abandon their expensive mining rigs.
Hashrate will flow into alternative GPU PoW coins, and many miners will simply give up and try to sell off their farms of cards, he said.
There are miners trying to sell high-performance computing (HPC) and GPU cloud services, but they will probably fail because they have too much capacity to keep up with a limited amount of demand, he added.
GPU prices and demand have already declined as a result of falling Bitcoin (BTC) prices, with some cards selling below list price and sellers pushing mining rigs and cards at inflated prices. I’m having a hard time offroading with.
Regardless of what happens post-merger, Long said he is “not strongly against it” and is interested in “how market forces play out.”
Merge was listed as an imminent threat when we were building GPU farms in 2017, but it would have been more impactful back then.
Although there will always be GPUs mining GPU-optimized chains, I dont think the level of earnings seen in ETHs proof of work will return to its peak again.
Ethereum is set to transition to a Proof of Stake (PoS) mechanism sometime between September 10th and 20th, and is considered one of the most significant upgrades in the crypto market this year.
Related: Largest Ether Mining Pool Ethermine Launches New ETH Staking Service
However, Bitcoin (BTC), Litecoin (LTC), Bitcoin Cash (BCH), Ethereum Classic (ETC), Monero (XMR), Zcash (ZEC) and Ravencoin (RVN).
White Rock Management is a Swiss-based digital asset technology company that mines cryptocurrencies through data centers located in Texas and Sweden.
