Ethereum's Merge and the Collapse of Bitcoin
Ethereum blockchain is expected to switch to new drastically less energy consumption method for validating transactions called as the Proof of Stake (PoS).
As per Kyle McDonald, who is an independent researcher, speaking to Coindesk's TV predicts, Bitcoin may be regulated away which could cause the prices of Bitcoin collapse.
He recommends selling bitcoin now. The reason is Ethereum's new Proof of Stake model. This could lead the investors and regulators to realize that the 'proof of work' method used for both Bitcoin and Ethereum which is using intensive energy is not necessary anymore.
The Ethereum Foundation claims the much inticipated Merge from Proof of Work to Proof of Stake this September that will significantly reduce the blockchain's energy consumption by around 99.95%.
Now this claim does look to be unrealistic but according to McDonald it is possible. According to McDonald, considering the climate crisis and Bitcoin's huge energy consumption, Bitcoin does not have the model like Ethereum to move from Proof of Work, thus making it more vulnerable to be regulated away.
The crypto energy consumption is a matter of contention for the environmental activists and governments, and Bitcoin will never see $69,000 again, he further added.
Ethereum's software update The Merge is expected to happen this September, and one expected benefit is, it will not require many computers in running the network. According to McDonald, the claim of cutting around 99.95% of energy consumption is realistic.
This may not be something Bitcoin advocates would like to see or may not agree with the views of Kyle McDonald. But who knows the future and taking in consideration the unpredictability of the crypto market, this might happen.
I don't think this could happen overnight considering Bitcoin’s market cap, community, status and probably a few other things.
What are your thoughts about McDonald's views?
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It’s absolute bullshit this McD prediction excuse me. The Ethereum merge has not even happened, nor has ETH proven all the things promised and he is saying you should sell all your BTC? I am not a Bitcoin Maxi but this is really just to get attention and wild speculation. My view.
Hmm
I do not say or think it’s impossible that BTC might get „regulated away“ but it’s very unlikely (despite the critics of its energy usage). It’s unlikely because all the big ones (BlackRock, Institutionals, CEOs, SP500 Companies like Tesla) are already invested and promote it. More and more Banks worldwide are offering it to their customers as an investment diversification. Fidelity even made it possible to invest parts your 401k money into BTC.
If it was 2017/18 things would look different but we have 2022 now and BTC is quite well adopted by hundreds of million people.
Anyways, we will have to wait and see. What interests me even more is the way Hive will go! 😋
Expect the best, prepare for the worst :)
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One of the largest BS I have read in a long long time
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Lol
I don't think his prediction will play out. How will they regulate BTC? I don't think it's possible unless they get over 50% of the network and I don't think that will happen.
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