Ethereum Merge is ready to happen in a number of days, and White Rock’s CEO believes it is going to result in different cash experiencing a rise in miners.
The Ethereum community is ready to transition from a proof-of-work (PoW) consensus to a proof-of-stake (PoS) mechanism later this month. The transfer is designed to improve the Ethereum blockchain to make it quicker, extra scalable, and scale back the price of transactions.
Nevertheless, Andy Lengthy, CEO of Bitcoin miner White Rock, advised Cointelegraph in a current interview that the transition is prone to flood the crypto business with out-of-work ETH miners.
Lengthy mentioned Ethereum miners could be on the lookout for greener pastures following the Merge occasion, and this may swamp different cash, rising mining issue and decreasing profitability. He added that;
“As GPU miners level their {hardware} at different chains, their issue will improve, inflicting decrease returns and splitting the reward amongst extra miners. Hashrate will stream to different GPU PoW cash, and lots of miners will merely surrender and attempt to unload their farms of playing cards.”
The CEO believes that the migration would probably pressure some cryptocurrency miners to surrender and abandon their mining rigs. He added that;
“Some miners will attempt to promote their Excessive-Efficiency Computing (HPC) or GPU cloud companies and can probably fail since there’s an excessive amount of capability chasing a restricted quantity of demand.”
In current months, GPU costs have been declining, correlating with the lower within the costs of Bitcoin and different cryptocurrencies. In consequence, some corporations are promoting their rigs beneath the record value, whereas sellers who maintained the conventional costs are struggling to dump mining rigs and playing cards.
Regardless of the upcoming Merge, Lengthy mentioned he’s concerned about seeing how the market forces play out in the long run. He mentioned;
“Once I was constructing GPU farms in 2017, the Merge was cited as an imminent risk and would have been far 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’s Merge occasion is slated to occur between September 10-20 and is taken into account one of the crucial important upgrades within the cryptocurrency market in 2022.