JPMorgan: The Merge will be a blow to Ethereum miners

With the transition of Ethereum to the Proof-of-Stake (PoS) algorithm, miners will have to look for alternative sources of income. This is stated in the JPMorgan report, which was at the disposal of CoinDesk.

Analysts noted that ether mining on video cards is still popular due to its high profitability. Switching GPU miners after The Merge to altcoins like Ethereum Classic, Ravencoin or Ergo promises tangible income only in the short term.

JPMorgan representatives are confident that the sudden appearance of large players in the ecosystems of alternative coins is fraught with a sharp decrease in the profitability of mining.

One of the main beneficiaries of the upgrade will be Ethereum Classic (ETC) miners, who will have access to “many devices for mining this cryptocurrency.”

Experts have already noted signs of switching capacities to ETC production. This is noticeable in the growth of the hashrate, which has been observed since about mid-July.

“Some investors are also looking at Ethereum Classic as a hedge against any potential Ethereum issues during the transition from PoW on PoS,” the report says.

Experts also allowed for a smooth dispersal of power among various networks, which provide for the possibility of mining on video cards.

Recall that the Ethereum developers successfully transferred the Goerli testnet to Proof-of-Stake, having conducted a “final rehearsal” before activating The Merge.