14 million GPUs removed after The Merge, what happens to ASIC miners?

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2022-09-18 02:11:43

After the successful Ethereum Merge, a problem for miners is that many GPUs may become useless…

The GPU or Graphics Processing Unit is at the core of any mining, regardless of whether it’s running on a Proof-of-Work mechanism. Therefore, when Ethereum is about to move to Proof-of-Stake, existing GPUs are said to be worthless. Miners may have found a new terminal, but the reality is that a large number of GPUs could soon become “scrap”.

So what are miners supposed to do?

Ethereum has a total network hash rate of around 901,320 Gh/s and if we consider the case of miners using RTX3070 GPUs, each GPU can generate 60 Mh/s. As a result, more than 15 million GPUs are currently being used by Ethereum miners to mine new ETH, resulting in a large number of GPSs that will become unavailable once The Merge is completed.

On the plus side, Ethereum miners may have only 2 choices, or they can choose any other PoW chain with GPU or mine on a forked ETH PoW chain. If miners choose to switch to other chains, this could dent profits as only 7.99% of these GPUs can be handled by other blockchains, which amounts to around 1.2 million.

So if miners still want to move to other chains, they need to mine without any profit. Second, the newly forked ETH PoW fork chain is also unlikely to consume these massive GPUs after the merger.

This can lead to a shortage of GPU supply, where miners can sell GPUs at the current price and buy them back at a lower price in a few weeks. Another possibility, however, is that miners may not be participating in the open market and may instead be looking for other transport options.

However, the Ethereum network still needs 4 to 6 weeks to measure the impact as the absorption market will not “plunge” in the short term.

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