What Would Be The Ethereum Merge Impact On Cryptocurrency Miners
August 07 2022 - 5:30AM
NEWSBTC
Miners of both Bitcoin and Ethereum are still thriving regardless
of the crypto winter. The revenue generated by Ethereum miners
surpasses that of Bitcoin miners, according to the 2022 record. The
growth of the miners is quite surprising given the increase in the
cost of electricity. But all that might come crashing down very
soon. There’s growing concern that the upcoming merge will put ETH
miners out of their jobs. This can be traced to the effect of the
asset’s merge on the operational mechanism of the network. Related
Reading: TA – Polkadot Price Shows Strength, Eyes $10 Ethereum
Miners Records High Revenue Drawing from Arcane Research
information, it was recorded that in 2022, Ethereum mining has
realized a revenue of up to $11 billion. This figure is a bit
higher than that discovered in Bitcoin mining. According to the
research, Bitcoin miners have realized about $10 billion within the
same period. The research data pattern is not different from that
of last year. At the time, Bitcoin mining generated up to $17
billion. But, again, the revenue figure generated was about $1
billion lower than that of the ETH miners, which was $18 billion.
Bitcoin mining had been recording higher revenue compared to that
generated through Ethereum mining. This was recorded as of 18
months back. Since then, the turn of events has been steady in
favor of ETH miners. The higher gain in ETH mining revenue is a
result of its ecosystem versatility. However, there is about to be
a change that could cost the jobs of Ethereum miners. That has to
do with the upcoming Ethereum Merge. This event aims to see the
successful merging of Beacon Chain and Ethereum Mainnet. Achieving
this objective will trigger the move of the ETH network to
Proof-of-Stake (PoS). Impact Of Ethereum Merge On Miners Ethereum
miners know that the Merge completion will end ETH mining. Also,
all transactions performed on the ETH network will be taken up by
validators. Moreover, based on the status-quo of the PoS
blockchain, these validators will be rewarded for every effort they
make. There is an option for ETH miners to migrate to Bitcoin
mining, but there is also a problem with the idea. That has to do
with the mining systems of both assets. While Ethereum miners use
GPUs to perform their mining process, Bitcoin miners, on the other
hand, use ASIC. This is where the problem of compatibility sets in.
At the end of the Merge, ETH miners will have just one option: to
receive a little of their previous amount before the merge. Also,
they will no longer have possession of their GPUs, as they will
sell them off. Related Reading: Crypto Market Trades Sideways As
The Inflation Fear Kicks In, What’s Ahead? Going further, AntPool
has announced its $10 million investment in ETC. the mining
platform believes that ETH will be mineable even after the merge is
completed. Furthermore, Chandler Guo, a Chinese miner, has revealed
his thoughts about creating another version (a forked version) of
the Ethereum network. This will be called ETHPoW as it will sustain
the Proof-of-Work mechanism of the digital currency blockchain
after the merge. Featured image from Pixabay - Chart from
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