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Ethereum merge to “flood” other coins with miners – Mining CEO

Published on

January 6, 2023
Read Time:1 Minute, 57 Second

The Ethereum community's transition from a Proof-of-Work (PoW) consensus is more likely to flood the crypto business with unemployed ETH miners, inflicting extreme disruption to all PoW tokens.

Chatting with Cointelegraph, Andy Lengthy, CEO of bitcoin miner White Rock, believes that the upcoming Ethereum merge will drive PoW miners to search for greener pastures like different PoW blockchains, thus "flooding" different cash - what will increase mining problem and reduces profitability, in response to the assertion :

"If GPU miners level their {hardware} at different chains, their problem will improve, leading to decrease returns and a reward sharing amongst extra miners."

Lengthy added that the migration will possible drive many crypto miners to desert and abandon their costly mining rigs.

“Hashrate will circulation into different GPU PoW cash and plenty of miners will simply quit and attempt to promote their card farms,” he stated.

"Some miners will attempt to promote their high-performance computing (HPC) or GPU cloud providers and can possible fail as an excessive amount of capability chases restricted demand," he added.

GPU costs and demand have already declined as a result of falling Bitcoin (BTC) costs, inflicting some playing cards to promote under record value and sellers struggling to dump their mining rigs and playing cards at inflated costs.

No matter what occurs post-merger, Lengthy says he is "not strongly opposed" and to see "how market forces play out."

"After I was constructing GPU farms in 2017, merger was labeled as an imminent risk and would have had much more impression on the time."

"There'll all the time be GPUs digging down some GPU-optimized chains, however I doubt we'll ever get again to the earnings seen on the ETH Proof-of-Work at its peak."

Ethereum is anticipated to modify to a Proof-of-Stake (PoS) mechanism between September tenth and twentieth and is seen as one of the vital important upgrades within the crypto market this yr.

Associated: Largest ether mining pool Ethermine launches new ETH staking service

Nevertheless, there are nonetheless many cryptocurrencies that may proceed their PoW journey, together with Bitcoin (BTC), Litecoin (LTC) and Bitcoin Money (BCH), in addition to Ethereum Basic (ETC), Monero (XMR), Zcash (ZEC) and Ravencoin ( RVN).

White Rock Administration is a Switzerland-based digital asset know-how firm that mines cryptocurrencies via information facilities in Texas and Sweden.

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Azeez Mustafa
Azeez began his FinTech career path in 2008 after growing interest and intrigue about market wizards and how they managed to become victorious on the battlefield of the financial world. After a decade of learning, reading and training the ins and outs of the industry, he’s now a sought after trading professional, technical/currency analyst and funds manager – as well as an author.
Last Updated : January 6, 2023
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