The changeover of the Ethereum network from a proof-of-work (PoW) consensus is anticipated to result in a massive influx of idle ETH miners into the cryptocurrency market, severely disrupting all PoW currencies, as reported by Cointelegraph.
Andy Long, CEO of Bitcoin miner White Rock, told Cointelegraph that he thinks the imminent Ethereum Merge will drive PoW miners to seek out other PoW blockchains and “swamp” other coins, raising mining difficulty and decreasing profitability. “”As GPU miners point their hardware at other chains their difficulty will increase causing lower returns and splitting the reward amongst more miners.”
Long continued by saying that many crypto miners will probably be forced to give up and sell their pricey mining equipment due to the exodus. Long asserts that he is “not strongly opposed” and curious to observe “how market forces play out” regardless of what transpires following the Merge. One of the biggest changes in the cryptocurrency market this year will be Ethereum’s switch to a proof-of-stake (PoS) method between September 10 and 20, Cointelegraph noted.
However, numerous cryptocurrencies, such as Bitcoin (BTC), Litecoin (LTC), and Bitcoin Cash (BCH), as well as Ethereum Classic (ETC), Monero (XMR), Zcash (ZEC), and Ravencoin, are still planned to follow the PoW route (RVN).
White Rock Management is a digital asset technology business with headquarters in Switzerland that mines cryptocurrency using data centres in Texas and Sweden, as reported by Cointelegraph.
(With insights from Cointelegraph)