Kyle McDonald: Sell Bitcoin Now Because It Might Collapse After The Merge

Kyle McDonald, an independent researcher, predicts that the Bitcoin (BTC) network could get “managed,” causing the price to crash.

Speaking on CoinDesk TV’s “First Mover” program on Friday, McDonald’s advises everyone to sell BTC now.

The reason is that after the Ethereum blockchain switched to a significantly less energy-intensive transaction validation mechanism, Proof-of-Stake, investors, and regulators could realize that the energy-intensive method that both Bitcoin and Ethereum use today, called Proof-of-Work, was never needed.

Cryptocurrency’s energy consumption has become a major point of contention for environmental activists and governments, and McDonald’s said BTC will never see “$69,000 again.” He said the possibility of Ethereum cutting energy costs by 99.95% is “highly realistic.”

“When you’re moving from a system that is about generating as many random numbers as fast as possible with 10 million GPUs across the world to a system that’s running on a few thousand computers that are pretty low energy, it’s going to make a huge difference,” McDonald said.

A software update called The Merge of Ethereum is expected to happen this month, and one expected benefit is that it won’t take many computers to keep the blockchain running.

To track Ethereum’s energy movement, Kyle McDonald’s created the Ethereum Emissions Tracker, which takes a bottom-up approach, but doesn’t affect ETH or electricity prices, according to McDonald’s website.

“I’m starting with the hashrate, then looking at the hardware and making a technical argument for how much electricity must be used,” he said.

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

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