With Ethereum’s transition to the Proof-of-Stake (PoS) algorithm, miners will have to seek alternative sources of income. This is stated in a JPMorgan report obtained by CoinDesk.
Analysts note that GPU-based Ethereum mining remains popular due to its high profitability. A switch by GPU miners after The Merge to altcoins such as Ethereum Classic, Ravencoin, or Ergo is expected to yield only meaningful returns in the near term.
Representatives of JPMorgan say that a sudden influx of large players into the ecosystems of alternative coins could sharply reduce mining profitability.
One of the main beneficiaries of the upgrade will be Ethereum Classic (ETC) miners, for whom a “plethora of mining devices” for this cryptocurrency will become available.
Experts have already noted signs of capacity shifting toward ETC mining. This is evident from the hash rate growth observed since around mid-July.
\”Some investors also view Ethereum Classic as a hedge against any potential problems for Ethereum during the transition from PoW to PoS,\” according to the report.
Experts have also allowed for a gradual dispersion of hash-power across various networks that support GPU mining.
Earlier, Ethereum developers successfully migrated the Goerli testnet to Proof-of-Stake, conducting a ‘final rehearsal’ before The Merge activation.
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