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Ethereum Merge may force crypto mining to surge in other PoW platforms

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The Ethereum Merge is soon to come and it may spell utter disaster for crypto miners who may give up their mining rigs. 

The Ethereum merge will entail a transition of the Proof of Work (PoW) consensus system  to a Proof of Stake (PoS) and will cause a major hiccup to other coins running on the PoW consensus. 

CEO of Bitcoin miner White Rock suggests that the Ethereum Merg will be a signal to PoW miners to look for a new opportunity elsewhere, and “swamp” PoW coins, increasing the amount of difficulty, and inversely affecting profitability from mining in these other platforms. 

“As GPU miners point their hardware at other chains their difficulty will increase causing lower returns and splitting the reward amongst more miners.”

“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.

Prices in GPUs have been on a steady decline, likely due to the harsh times the crypto market has fallen on recently. At this point, it is becoming increasingly more difficult for traders to get rid of their mining rids amid the dropping prices in GPUs. 

Long says that he 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.”

The Ethereum Merge is set for a date between September 10 and September 20. It is touted as being the most pivotal upgrade on the crypto stage in 2022.

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