- Hayes, co-founder of Bitmex believes that the Merge need not be deflationary.
- “Those who believe Ethereum will be deflationary should believe the reward for the validator will nullify the ETH emitted,” says Hayes.
- People don’t care whether ETH proof-of-work and ETH proof-of-stake: pointed out Hayes.
Arthur Hayes, co-founder of BitMEX crypto exchange believes that Ethereum doesn’t need to be deflationary after the Merge. In a recent interview with Laura Shin, a crypto journalist, Hayes made statements regarding the impending Merge. He brought Bitcoin (BTC) halving into the scenario to explain how it did not cause BTC to deflate but reduce inflation.
In a recently written blog, Hayes shares that the Merge will be unaffected by the Ethereum prices. According to the blog, Hayes stated:
Either the merge happens, or it doesn’t. That is the future event we are trading. The merge itself is unaffected by the price of ETH, and will succeed or fail solely based on the skills of the Ethereum core developers.
Furthermore, Hayes shared his prediction for the market if the Merge was going to end in a fork. He thinks that it will be tough for a forked version of Ethereum to thrive since it will lack adoption levels in the long run.
While clarifying the reasons for his belief, he said
The reason why Ethereum is valuable is that people use it, right? And the majority of people who use Ethereum are not very technologically savvy.
Hayes further noted that people don’t care about what consensus mechanism is used, be it Proof-of-work or Proof-of-stake, instead he said that they just need to buy some coin.
If there is a fork, then anyone holding ETH is positioned to receive an equal number of forked tokens. If that be the case, then Hayes says that this will present a perfect trading opportunity for investors. Hayes brought Bitcoin cash into the context as it went through a similar phase to this hypothetical scenario.But Bitcoin did not do well with the price performance vs asset supply during the fork.
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