The move of Ethereum to Proof-of-Stake, the famous Merge, is eagerly awaited and of interest to the crypto community. For one of the largest banks in the world, the latter will not benefit.
A merger that doesn’t solve all the problems?
The merger is expected for September, or even August at best, so it will allow the Ethereum blockchain to change its consensus mechanism. Not transferring more work and mining proofs to the proof of question, which is especially more ecological. This move should allow Ethereum improve its scalability and solve these recurring congestion problems. These problems in particular have led to significant increases in gas costs.
For Morgan Stanley, this long – awaited change will not have the expected effects, especially in scalable terms. According to the banking giant, this would only affect the power consumption of the blockchain, at most. A great position as a consensus emerges rather than the benefits of this merger for Ethereum.
End of mining and its consequences
So the end of proof of work on the second largest blockchain in terms of capitalization led to the end of mining. According to Morgan Stanley, this will result in less demand for graphics cards that made it possible then to mine ether.. A fall in demand has already been noticed and many miners are already reselling their equipment at various resale locations.
Morgan Stanley recalls that thestrong demand for graphics cards disrupted the gaming industry and equipment prices rose. According to the bank, the Nvidia giant is not as vulnerable to this decline in demand as it was in 2017-2019. AMD and Nvidia, the two graphics card giants, claimed that the worst-case scenarios were expected for the fall in demand for cryptocurrencies.
So the transfer of Ethereum will have an impact on equipment in terms of graphics cards. As for its uses, Morgan Stanley is more skeptical. However, this is not the majority scenario in the crypto sector. Many people see The Merge as a major change in the history of Ethereum.
Crypto-assets are a risky investment.