There is a key point in the space. There are two dominant proof of work-based coins. Some of the largest exchanges and miners in the space have not been able to change the rules of the consensus.
As soon as Q2 2022, the biggest change could come.
Graphics card miners will no longer be useful for adding blocks to the ether ledger when it transitions from a proof of work to proof of stake protocol.
The transition has been pushed back many times since it was discussed in the community. A proposal to push the December 2021, difficulty bomb, was discussed during the October 15th meeting.
Given the specialized nature of Ethereum mining, it would be our bet that those miners will leave the market completely.
The difficulty bomb increases mining difficulty at a certain block height and causes a hard fork. The community expects the transition to proof of stake to occur around June 2022, when the difficulty bomb is expected to occur.
The transition will be very bad for miners who are currently mining. These miners will have to change their graphics cards to mine other coins that are more profitable with their equipment, and those coins are less profitable to mine, in addition to being less profitable to mine. If the transition to PoS occurs, the graphics card market will be flooded with cheap used chips from miners.
The high risk that their machines will become obsolete overnight is what this means for the miners. Their cash flows would immediately dry up and their resale value would plummet. A large majority of capital is going into the mining of the virtual currency, specifically.
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