Ethereum’s Merge to Reduce Demand for GPUs, says Morgan Stanley

Summary:

• According to a Morgan Stanley analyst, request for GPUs should trim with Ethereum transitioning into a proof-of-stake network.
• The crypto drawdown has further reduced the profitability of Ethereum mining.
• However, the Ethereum mining assemblage could task into alternatives specified arsenic Ethereum Cash and Ravencoin.

Ethereum’s modulation from a proof-of-work algorithm to proof-of-stake done the Merge of the Beacon Chain with the ETH mainnet could trim request for GPUs.

According to a probe note by Morgan Stanley’s equity strategist Sheena Shah, the little energy-intensive proof-of-stake volition trim request for GPU miners. In addition, the crypto drawdown successful the markets has besides resulted successful reduced profits for Ethereum miners, further eliminating the request for GPUs. The enactment said:

Bitcoin and Ethereum presently necessitate almighty computers for the mining process and devour a batch of vigor which governments and regulators are progressively acrophobic over. If Ethereum moves to utilizing Proof-of-Stake (PoS) it volition destruct the request for miners (reducing request for GPUs) and drastically trim vigor requirements.

Ethereum Miners Could Find Alternatives successful Ethereum Classic and Ravecoin – Bloomberg.

However, successful another analysis by Bloomberg successful mid-June, it was forecasted that Ethereum miners would astir apt support mining till the Merge occurs aboriginal this year. Furthermore, immoderate miners considered transitioning their Ethereum miners to excavation Ethereum Classic oregon Revencoin.

The squad astatine Ethereum Classic has already started enticing existing Ethereum miners by requesting that they program their migration to ETC earlier the Merge occurs. They further emphasized that Ethereum Classic was much than capable to grip the abandoned Ethash hashrate. They explained:

This Merge lawsuit volition disenfranchise the largest EVM’s Proof of Work mining ecosystem. Ethereum Classic is good positioned to sorb overmuch of this abandoned Ethash hashrate.

However, Ethash miners mightiness not recognize that Ethereum Classic operates a modified mentation of Ethash called ETChash.

The Ethereum Classic squad besides pointed retired that the Thanos Upgrade successful November 2020 slowed the hashrate of the DAG. This, successful turn, ‘has allowed GPU miners to run their instrumentality longer connected ETChash than Ethash.’ They added:

New ETChash miners volition find comfortableness successful knowing that Ethereum Classic made a semipermanent committedness to Proof of Work consensus done the network’s Die Hard Upgrade in 2018.

If you’re caller to the ETC mining ecosystem, you’ve recovered a semipermanent location connected Ethereum Classic. A battle-tested web wherever you tin decently program your mining business’ superior and operational expenditures astir a predictable monetary policy and unchangeable web that is widely integrated throughout the cryptoverse.