Speaking to Cointelegraph, Andy Long, CEO of Bitcoin miner White Rock, believes that the upcoming Ethereum Merger will increase mining difficulty and reduce profitability by forcing PoW miners to seek greener pastures like other PoW blockchains, thereby “sinking” other coins. :
“As GPU miners point their hardware at other chains their difficulty will increase causing lower returns and splitting the reward amongst more miners.”
Long added that the migration will likely force many crypto miners to give up and abandon their expensive mining rigs.
“Hashrate will flow to alternative GPU PoW coins, and many miners will simply give up and try to sell off their farms of cards,” he said.
“Some miners will try to sell their High-Performance Computing (HPC) or GPU cloud services and will likely fail since there’s too much capacity chasing a limited amount of demand,” he added.
Regardless of what happens after the Merge, Long says he is “not strongly opposed” and is interested to see “how market forces play out.”
“When I was building GPU farms in 2017 the Merge was cited as an imminent threat and would have been much more impactful then.”
“There will always be GPUs mining some GPU optimized chains, but I doubt we will return to the levels of revenue seen in ETH proof-of-work at its peak ever again.”
Ethereum is expected to switch to a proof-of-stake (PoS) mechanism between September 10-20 and is considered one of the most significant upgrades in the crypto market this year.
However, there are many cryptocurrencies that will continue on the path of PoW, including Bitcoin (BTC), Litecoin (LTC) and Bitcoin Cash (BCH), as well as Ethereum Classic (ETC), Monero (XMR), Zcash (ZEC). ) and Ravencoin (RVN).