American investment bank and consulting firm JPMorgan made various statements about ETH. Accordingly, the consulting giant predicts that miners will switch from Ethereum to Ethereum Classic. As it is known, Ether will switch from Proof-of-Work to Proof-of-Stake mechanism with the Merge upgrade in September. Thus, validators rather than miners will secure the network.
“Miners are leaving the Ethereum network”
According to JPMorgan, Ethereum miners will face a sudden change after the network moves from a PoW system to a PoS consensus mechanism. With Ethereum’s Merge upgrade, the roles of miners will end. Therefore, miners have already started to migrate to a new altcoin project. Also known as Merge, this transition is the first of five planned upgrades for Blockchain. Also, it is scheduled for release in September. ETH mining is dominated by rigs that are more flexible than those used for Bitcoin mining. Also, these rigs can be more easily reconfigured to mine for other altcoins. Basically, the mentioned hardware is located in the Ether network as a GPU base.
GPU hardware also works on compatible altcoins like Ethereum Classic, Ravencoin and Ergo. As a result, mining rigs are likely to switch to these altcoins with Ethereum’s transition to PoS. The bank says that Ether (ETH) mining is popular because of its profitability. He then points out that the move to mining other cryptocurrencies could mean a blow. In addition, he says, the sudden influx of large mining pools to a different altcoin has the potential to squeeze margins for the established ones. These Ether miners using ASIC rigs have few alternatives beyond Ethereum Classic (ETC). JPMorgan says that ETC miners could be among the main beneficiaries of Ether’s PoS transition. He cites the increase in second-hand mining rigs likely to be obtained from ETH miners who decide to become validators in Ethereum 2.0 as the reason.
“ETC hash rate is getting bigger”
The bank states that there has been a noticeable increase in the hash rate since mid-July. He says that this hash rate spike is signs that a miner transition to Ethereum Classic is taking place. Some investors also see ETC as “a hedge against possible disruptions to the Ethereum blockchain during the transition from PoW to PoS.” The most likely outcome after Ethereum’s transition to PoS would be for miners to distribute their hardware across different networks that support GPU mining. As we reported as Kriptokoin.com, the Merge upgrade is expected to be seamless.
Ethereum Classic price on the rise
ETC, which has been moving at a fixed price for a long time, has been on the rise recently. Accordingly, the cryptocurrency has gained 12.56% in the last 24 hours. Behind the increase in value is largely the Ethereum Merge upgrade. The fact that miners switch to ETC before the transition to PoS seems to be fueling the rise in price.
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