Finally, the Ethereum integration update and migration of the network to the proof-of-stake mechanism is in its final stages. However, according to some experts, a massive flood of idle Ethereum miners could cause severe disruption to the network of other minable digital currencies.
According to Cointelegraph, Andy Long, CEO of Bitcoin mining company White Rock, said that Ethereum’s integration update will force miners to look for new jobs in other proof-of-work blockchains. As a result of their widespread entry, the difficulty of the proof-of-work token network will increase and the profitability of their mining will decrease.
He further said:
By taking their hardware to other blockchains, miners with GPUs increase the difficulty of their network, reducing efficiency and splitting rewards among more miners.
Long added that the move will also likely force many Ethereum miners to quit and ditch their expensive mining rigs.
He said about this:
Hashrate will flow to proof-of-work networks whose digital currency can be mined with GPUs. Of course, many miners simply give up and try to sell farms full of graphics cards.
Some miners try to sell their high-speed computing (HPC) or cloud graphics processing services, but they will likely fail; Because there is a huge capacity and limited demand in this sector.
With the decrease in the price of Bitcoin, Ethereum and digital currencies in general, the price and demand for buying GPUs has also been decreasing. This incident has led to the sale of graphics cards below the price and sellers struggle with price inflation to empty their warehouses of mining rigs and graphics cards.
Regardless of what happens after the merger, Long says he’s not strongly against it, and is interested to see how market forces — supply and demand — play out.
When I was building GPU farms for cryptocurrency mining in 2017, mergers were considered a definite and early threat. [این بحثها] It was much more influential then. Although GPU mining will continue to exist on some GPU-compatible blockchains, I doubt we will ever return to the revenue levels we experienced during the heyday of Ethereum’s proof-of-work mining.
The Ethereum network is expected to move to the proof-of-stake mechanism between September 10-20 (19-29 September). The move is considered one of the most significant updates in cryptocurrency history.
However, there are still many proof-of-work cryptocurrencies on the market, including Bitcoin, Litecoin, Bitcoin Cash, Ethereum Classic, Monero, ZCash, and Ravencoin.