ETH2.0 aka The Alt Coin Hash Bomb

Creating this thread to gauge sentiment and hear predictions.

As we all know, ETH2.0 aka Proof of Stake [POS] is coming. Whether it's early/mid/late next year or later. It will happen. The question on everyone's mind is "What are the consequences?".

Question: How many TH/s will be freed up after POS?

• After POS, GPU's no longer serve a purpose for ETH
• The network hashrate for ETH is roughly 900 TH/s as of 12/20/2021
• Excluding BTC, ETH roughly controls 80% of all network hash rates according to Nicehash. The other 20% are spread out among all the other altcoins
• Let's assume that 50% [=450 TH/s] of ETH network hashrate came from ASICs built specifically for the ETH algo and thus can not transition to another coin. That means 450 TH/s [900 TH/s * 50%] come from discrete GPUS

Takeaway: 450 TH/s will be freed up after POS

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Question: What will miners do after POS and what are the consequences of that?

• There are still coins requiring POW
• Miners will still want to make a profit after POS
• Miners will switch their rigs towards the most profitable coin at that moment
• Miners will switch off their rigs when they no longer make a profit
• When more miners join a coin, the difficulty of mining it will increase proportionally
• Miners receive fewer coins/rewards as difficulty increases
• At some point, an equilibrium will be reached
• Miners will jump as a coin becomes unprofitable to mine

Takeaway: Miners will flood their hashpower into the altcoin market after POS

Takeaway: POW alt coins will see difficulty spikes in rapid successtion

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Question: What will happen when all altcoins become unprofitable all at the same time?

This is the key question is I would like to revolve our discussions on. What will happen when suddenly the entire alt market collapses. Some will say that another altcoin will rise up in ETH's place and will also see their prices rise. The problem is that is extremely unlikely which we will see in the next question:

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Question: How much must an ALT coins price be in order to proportionally keep up with the influx of network hashrate?

Takeaway: I can't do math right now. I'm going to assume the rise in price needed will not be possible to keep up. [i.e. a coin can not reach and sustain $100 Trillion market cap. It will collapse]

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Conclusion

Miners will be devastated after POS. They will all turn towards alternatives in a bid to continue generating profit. Miners will collectively push all altcoin difficultly at the same time. An equilibrium will be reached where all altcoin will be in an equilibrium of 0% profits. Miners realize they no longer make money. Many miners decide now is a good time to sell their GPUs. They'll be a rush to exit.

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Putting my stock hat on: Millions of used GPUs will hit the market as miners go through firesales of equipment as everyone rushes to exit at the same time. Analyst will decrease forecasts of Nvidia, who makes 50% of revenue via GPUs. Nvidia stock will go down.

The reality is that Miners are a part of but not the biggest part of why there is a shortage. [The biggest being simple demand for GPUs]. Nvidia isn't losing that much business when Miners flood the GPU market. The sheer demand for GPU's will keep MSRP high.

I will purchase stock during this time and I expect earnings will beat expectations

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Discuss!