Could The Merge Lead to a Bitcoin Collapse? By Investing.com


© Reuters

Investing.com – Many investors believe that the Network Merge Update scheduled for September this year could herald the start of a sustained uptrend in the price of , raising the question of what will become of it in relation to Bitcoin, the world’s first cryptocurrency in terms of price. capitalization.

However, according to renowned analyst Kyle McDonald, the consequence of Ethereum’s transition from a PoW method to a PoS method could highlight the massive energy consumption of the Bitcoin network, which could thus be “regulated”, leading to a collapse in the market. price of .

He therefore advises to part ways with Bitcoin for the time being, predicting that when the Ethereum blockchain adopts a “proof-of-stake” validation method, investors and regulators may find, in contrast, that the energy-intensive method currently used by the Bitcoin and Ethereum, the “proof of work” method, is not essential to the functioning of the cryptocurrency market.

Speaking on CoinDesk TV’s ‘First Mover’ show on Friday, the analyst discussed the ‘climate crisis’ and bitcoin’s massive energy use, which has been brought to light in the current energy crisis.

He explained that “Bitcoin does not have the coordination like Ethereum to leave proof of work” and therefore could be “the first to be regulated”.

In this context, Mr. McDonald said he hopes Bitcoin never sees “$69,000” again, its all-time high in November 2021.

The analyst also felt that it is “very realistic” to think that the Merge upgrade will cause Ethereum to reduce its power consumption by 99.95%.

“When you go from a system of generating as many random numbers as quickly as possible with 10 million [unidades de processamento gráfico] around the world, for a system that runs on a few thousand computers with sufficient energy efficiency, the difference will be huge”, said Mc Donald.

From Investing.com France

Source link

About Admin

Check Also

Don’t run out of internet! Find out how eSIM can be your ally when traveling internationally | video

When you go on an international trip, one of the concerns is how you will …

Leave a Reply

Your email address will not be published. Required fields are marked *