“The Merge” Is An Opportunity For Ethereum To Overthrow Bitcoin
Ethereum’s impending transition to a proof-of-stake consensus will change its monetary policy, potentially making ETH more scarce than Bitcoin (BTC).
Ethereum researcher Vivek Raman believes that ETH’s upcoming transition to proof-of-stake (PoS) consensus will allow it to take over Bitcoin’s position as the dominant cryptocurrency.
Raman said in an interview with Cointelegraph:
“ETH does have, just from an economic perspective and because of the effect of the supply shock, a chance to flip Bitcoin.”
The Merge, a long-awaited upgrade that will complete ETH’s transition from proof-of-work consensus to proof-of-stake consensus, will take place in September. Additionally, The Merge will transform and change ETH’s monetary policy, make the network more environmentally sustainable, and reduce the total supply of ETH by 90%.
Raman points out:
“After The Merge, Ethereum will have lower inflation than Bitcoin. Especially with fee burns, Ethereum will be deflationary while Bitcoin will always be inflationary. Although, with every halving, the inflation rate goes down.”
While Bitcoin will retain its functionality as digital gold, according to Raman, Ethereum will still have a “larger adoption space” as the base layer of the decentralized financial (DeFi) economy.
The Merge will not bring down ETH’s high transaction fees, which is still the main issue preventing Ethereum from scaling. According to Raman, that shouldn’t be a problem, as ETH will rely on layer-2 scaling solutions to support most user activity.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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Harold
CoinCu News
Author
Blockchain, Ethereum
“The Merge” Is An Opportunity For Ethereum To Overthrow Bitcoin
Ethereum’s impending transition to a proof-of-stake consensus will change its monetary policy, potentially making ETH more scarce than Bitcoin (BTC).
Ethereum researcher Vivek Raman believes that ETH’s upcoming transition to proof-of-stake (PoS) consensus will allow it to take over Bitcoin’s position as the dominant cryptocurrency.
Raman said in an interview with Cointelegraph:
“ETH does have, just from an economic perspective and because of the effect of the supply shock, a chance to flip Bitcoin.”
The Merge, a long-awaited upgrade that will complete ETH’s transition from proof-of-work consensus to proof-of-stake consensus, will take place in September. Additionally, The Merge will transform and change ETH’s monetary policy, make the network more environmentally sustainable, and reduce the total supply of ETH by 90%.
Raman points out:
“After The Merge, Ethereum will have lower inflation than Bitcoin. Especially with fee burns, Ethereum will be deflationary while Bitcoin will always be inflationary. Although, with every halving, the inflation rate goes down.”
While Bitcoin will retain its functionality as digital gold, according to Raman, Ethereum will still have a “larger adoption space” as the base layer of the decentralized financial (DeFi) economy.
The Merge will not bring down ETH’s high transaction fees, which is still the main issue preventing Ethereum from scaling. According to Raman, that shouldn’t be a problem, as ETH will rely on layer-2 scaling solutions to support most user activity.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Harold
CoinCu News
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