Ethereum Merge will ‘engulf’ other coins with miners: White Rock’s CEO

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Ethereum Merge is set to take place in a few days, and White Rock’s CEO believes it will lead to other coins experiencing an increase in miners.

Ethereum is planning to ditch its proof-of-work (PoW) system this month in exchange for a more efficient proof-of-stake (PoS)model. The primary benefits of the change are an upgraded blockchain that can handle bigger loads faster and at a lower cost.

However, in a recent interview with Cointelegraph, Andy Long- CEO of Bitcoin miner White Rock- says that. The transition is likely to cause an influx of out-of-work ETH miners into the crypto industry.

Long says that after the Merge event, Ethereum miners would go to different coins. And this will lead to more issues like an increase in mining difficulty and fewer profits. He adds that;

“GPU miners will earn less money as they split their resources among different chains. The hashrate, or computing power devoted to mining, will flow towards coins that use an alternative proof-of-work algorithm. Many miners will be forced to abandon their operations entirely.”

The CEO believes that the migration would likely make some cryptocurrency miners stop mining. He adds that;

Many miners will attempt to sell their cloud-based High-Performance Computing (HPC) or GPU services are likely to fail. Because there is an excessive amount of capacity relative to the limited demand.

GPU prices have been decreasing recently. And this has been happening at the same time as the prices of Bitcoin and other cryptocurrencies.

Some organizations are selling their rigs below the advertised price. While vendors who kept the usual pricing were having trouble selling mining rigs and cards.

Long says that he is curious to see what the market will do in the future, especially after the Merge. He states;

“When I was creating GPU farms in 2017, people were already saying that the Merge would be a huge issue, and it definitely would have been more impactful then. Some GPUs will always mine chains that are optimized for them, but I highly doubt we will ever see the revenue levels from ETH proof-of-work mining again.”

The Ethereum Merge event is set to occur between September 10th and 20th, 2022. And it will be one of the most significant upgrades in the cryptocurrency market that year.

The Ethereum network is moving from a proof-of-work consensus algorithm to a proof-of-stake one. To reduce energy consumption and make the network more sustainable

According to Long, Ethereum’s new Proof of Stake (PoS) consensus algorithm could be “detrimental” to the business of Ethereum ASIC miners.

He says: “The Ethereum network is moving from a proof-of-work consensus algorithm to a proof-of-stake one. To reduce energy consumption and make the network more sustainable. This will be detrimental to our business as Ethereum ASIC miners will no longer be needed.”

It remains to be seen how Ethereum’s transition to PoS will affect Long and his company.

But, if Ethereum miners are no longer needed. It could have a major impact on the Ethereum mining industry and the companies that have built their businesses around it.

About the Ethereum Merger

Ethereum and Ethereum Classic have come to a merger agreement where Ethereum will absorb Ethereum Classic.

This has caused some controversy in the Ethereum community. As Ethereum Classic was created as a fork of Ethereum after the DAO hack. The merge is set to occur around January 2019.

Ethereum miners will no longer be needed when the network transitions to proof-of-stake.

What does this mean for Ethereum miners? For the Ethereum miners that will no longer be needed, it could mean having to find a new job or source of income.

Companies that are built around Ethereum mining could also be affected, as they will no longer have a reason to exist.

The Ethereum community is divided on this issue, with some people feeling that Ethereum should remain as is. And others feel that the Ethereum Classic chain should be absorbed. Only time will tell what will happen.