JPMorgan: Ethereum Miners Face an Abrupt Change Following the Merge
By Alice 17 Sep 2022


Ethereum Classic miners are likely to be among the main beneficiaries of the shift to proof-of-stake validation, the bank said.


Ethereum miners are facing an abrupt change after the network moves to a proof-of-stake (PoS) consensus mechanism from a proof-of-work (PoW) system and their role effectively ends, forcing them to seek alternative income streams, JPMorgan (JPM) said in a research report Wednesday.


This switch, also known as the Merge, is the first of five planned upgrades for the blockchain, and is provisionally expected to take place in September.


Ethereum mining is dominated by GPU (graphics processing units) rigs, which are more flexible than those used for bitcoin mining and can be more easily reconfigured to mine for other coins. GPU rigs can be used for mining compatible cryptocurrencies such as Ethereum Classic, Ravencoin and Ergo as well as for gaming, it said.


Ether (ETH) mining is popular because of its profitability, the bank said, and a shift to mining other cryptocurrencies could mean a hit to profits in the near term. In addition, the sudden influx of large mining pools to a different coin could squeeze margins for the incumbents, the report added. Those ether miners using ASIC (application-specific integrated circuits) equipment have few alternatives beyond Ethereum Classic.


Ethereum Classic (ETC) miners could be among the main beneficiaries of the switch, JPMorgan said. That’s because there’s likely to be a surge of secondhand mining rigs available from ETH miners that have decided to become validators on Ethereum 2.0.


There are signs this shift to Ethereum Classic is already taking place, with a noticeable increase in the hashrate since mid-July, the bank said. Some investors also view Ethereum Classic as a “hedge against any potential disruptions in the Ethereum blockchain during the shift from PoW to PoS,” according to JPMorgan.


The most likely outcome after Ethereum moves to PoS may be that miners distribute their rigs across different networks that support GPU mining, as well as other applications to get “salvage value,” the note said, adding that as the transition approaches, mining pools will likely transition relatively smoothly.


Bitcoin BTC
Brazilian Firms Break Crypto Purch
By Alice 06 Dec 2022
Brazilian Firms Break Crypto Purchase Records Agai...
Bitcoin Price Quotes Today
By Alice 06 Dec 2022
Bitcoin Price Quotes Today
Bitcoin Prices Today12.2
By Alice 02 Dec 2022
Bitcoin Prices Today12.2
A Brief History of Bitcoin Mining,
By Alice 01 Dec 2022
A Brief History of Bitcoin Mining, an Overview of ...
 What is Bytom? What is the mining
By Alice 24 Nov 2022
What is Bytom? What is the mining income of Bytom...
What is a wave mining field?
By Alice 23 Nov 2022
What is a wave mining field?
What Is POS mining? What Are The M
By Alice 23 Nov 2022
What Is POS mining? What Are The Main Differences ...
Elon Musk is Positive About The Fu
By Alice 18 Nov 2022
Elon Musk is Positive About The Future of The Cryp...
How About BAT? How To Mine BAT Att
By Alice 18 Nov 2022
How About BAT? How To Mine BAT Attention Coin?
Is There Any Profit in Lock-up Min
By Alice 17 Nov 2022
Is There Any Profit in Lock-up Mining? What is The...
The Difference Between Cryptocurre
By Alice 16 Nov 2022
The Difference Between Cryptocurrencies And Crypto...
How About PIVX Coins? How To Mine
By Alice 15 Nov 2022
How About PIVX Coins? How To Mine PIVX Coins?
ZkSync: A Glimpse into Ethereum's
By Alice 12 Nov 2022
ZkSync: A Glimpse into Ethereum's Future
Can Laptops be Used for mining? Wh
By Alice 10 Nov 2022
Can Laptops be Used for mining? Why is it not reco...
Mining And Currency Which is Good?
By Alice 08 Nov 2022
Mining And Currency Which is Good? Make Money By S...
When Mining Machine Mining Environ
By Alice 08 Nov 2022
When Mining Machine Mining Environment Temperature...
What Does It Mean To Mine Selfishl
By Alice 07 Nov 2022
What Does It Mean To Mine Selfishly? How Does This...
What is Quant (QNT)?
By Alice 03 Nov 2022
What is Quant (QNT)?
What is Ethereum Classic Mining? W
By Alice 02 Nov 2022
What is Ethereum Classic Mining? Why is The Ethere...
The relationship between NFT and b
By Alice 27 Oct 2022
The relationship between NFT and blockchain
Hot Products
Contact us
+12367095429
+8619357626805
+86 19357626805
Product consulting
Payment issues
Abnormal account
Top-up activities
WeChat
Code scanning
consultinf products
+12367095429
+8619357626805
+86 19357626805
Machine delivery
Product testing
Logistics service
Problem usage
WeChat
Code scanning
consultinf products
+12367095429
+8619357626805
+86 19357626805
Corporate clients
Business cooperation
Online message
WeChat
Code scanning
consultinf products
Pre Sale
After Sale
Key Customers
Clicky