Ethereum (ETH) Transition to Proof of stake Known as Marge (PoS) may lead some of the present Bitcoin (BTC) One industry insider claims to be the holder of a portion of the capital transferred to ETH. On the other hand, while ETH yields are attractive, some say that regulatory scrutiny means more uncertainty awaits Ethereum investors.
Once the merge is complete, “users can place bets and there is no upfront cost,” said Kosala Hemachandra, founder and CEO of the popular ETH wallet. MyEtherWalletEmphasized as a major benefit for ETH investors in comments to Cryptonews.com..
Hemachandra said he believes that “many Bitcoin holders” will move to Ethereum to bet their tokens and earn yields on their investments.
The transition of the Ethereum network to the proof of stake consensus mechanism occurs when more and more institutional investors are involved in the cryptocurrency situation and so far most have been exposed only to BTC.
But of Bitcoin Proof of work The (PoW) consensus mechanism uses too much energy and is not environmentally friendly. Financial institutions that send virtue signals may be more interested in Ethereum.
It is worth noting that the firm schedule for Ethereum’s transition to PoS is not generally known. Therefore, the best estimate of when the merge will take place is based on comments from the main developers of the project. Late 2022 or early 2023..
Estimates of when the long-awaited Ethereum merge will occur have been postponed many times in the past, and the event was expected to occur until recently. Sometime between May and June This year.
Despite the unclear timeline, MyEtherWallet Hemachandra said he is confident that Ethereum will become more popular with yield-seeking investors.
“ETH will definitely be more attractive and profitable as it will be the largest blockchain to offer staking solutions and attractive returns,” Hemachandra said, Bitcoin “blocks. It always plays a role in the chain ecosystem. “
ETH is “excellent” from an ESG perspective, but preferences can change
Meanwhile, according to Ben Kaselin, head of cryptocurrency research and strategy. AAXDue to the merger, in the eyes of certain investor groups, “ETH may be considered” superior “to BTC when surrounded by ESG. [Environmental, Social, and Governance] perspective. “
However, Caselin added that the story can change easily, adding that “institutional preferences can change” as Bitcoin and PoW become more understood.
An important thing to keep in mind about the transition to assets that generate ETH yields is how regulators see it, Caselin said. In the United States Securities and Exchange Commission The (SEC) has already stated that it is not very keen on yields and interest-bearing products, which has a negative impact on platforms such as: BlockFi When Celsius ((((CEL), According to Caselin.
Therefore, regulatory uncertainty regarding the future of ETH can scare some potential investors, especially those that allocate large amounts of capital.
As a result, Bitcoin (probably the most decentralized cryptocurrency) can benefit from a technical point of view, regardless of whether the merge is successful or not, Caselin said.
“”[C]Continue to accumulate [BTC] It may be the best way to actually move forward during these years.Despite everyone’s beliefs or expectations, Bitcoin and the wider crypto market are often disappointing, “Caselin said. Cryptonews.com..
ETH “can actually rise to over US $ 10,000 by the end of this year, but it is unlikely to reach that without it. [BTC] It’s at least over US $ 120,000, “Caselin added, adding that BTC and ETH are” still working relatively consistently until one day. “
At 14:02 UTC on Friday, BTC traded at $ 40,293, down almost 6% in a day and up more than 1% in a week. ETH fell more than 5% in a day, remained almost unchanged in a week and traded at $ 2,993.
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