What will happen to mining profitability after the Ethereum Merge? #Ethereum #EthereumMerge #eth

Quick thread 🧵

There is currently A LOT more hash rate on Ethereum then all other GPU mineable coins combined!

So, the assumption is when Ethereum mining ends, all of that hash rate will have to move from Ethereum to these other coins.

And when that happens all other coins will become unprofitable to mine because there will be so much hash rate on the networks for those coins that the mining rewards will drop drastically.

BUT is this assumption correct? Why would people mine a coin if it's not profitable. So most likely what will happens is that some people are gonna have to shut off their mining rigs because the low rewards will not make sense. 

Once this happens hash rate will start dropping and the market will find a sweet spot in where people will start making profits again.

One more thing to take into account. Not all hash rate currently on ethereum will be able to move to other coins. That is because a big chunk of the hash rate that is on Ethereum right now is made up of ASICS. And we know that these are optimized to only mine one coin. 

So one portion of the hash rate will not be able to move to another coin and will have to shut down but we currently don't know how big that part is.

Profits are going to drop. And in the end the miners who pay less energy or have more efficient gpu's will be more competitive and stay in the game.

You can read the unrolled version of this thread here: https://typefully.com/arman_eker/FRkeg8e