- The crypto community argues whether Bitcoin will follow Ethereum to adopt proof-of-stake.
- The founder of Ethereum founder retweeted that post-merge, worldwide electricity consumption will reduce by 0.2%.
- Deutsche Bank researcher predicted Ether as an alternative to bonds or commodities for institutional investors.
The crypto community enters a contentious argument about whether Bitcoin would follow Ethereum now that the long-awaited network upgrade is over.
The Merge, a modification to the Ethereum (ETH) blockchain’s token creation and transaction ordering, happened early Thursday. The process implies a switch to the proof-of-stake model, which entails putting up ETH as part of sorting transactions and minting currencies.
According to some estimations, the change would cause Ethereum to become 99% more energy efficient, which will significantly satisfy regulators and institutional investors who have long complained about how carbon-intensive crypto is. Vitalik Buterin, the founder of Ethereum, retweeted on Thursday that post-merge the worldwide electricity consumption will reduce by 0.2%.
"The merge will reduce worldwide electricity consumption by 0.2%" – @drakefjustin— vitalik.eth (@VitalikButerin) September 15, 2022
On the other hand, verified handle punk6529 argued that “the optimal outcome for cryptocurrency at large at this stage is Bitcoin using Proof of Work and Ethereum using Proof of Stake.” They believe it will be better to “experiment in parallel with the two largest ecosystems and have multiple pathways to win.”
Deutsche Bank research analyst Marion Laboure said authorities “may progressively compel the proof-of-work cryptocurrencies to cut down energy use” if Ethereum’s new staking method proves more environmentally friendly.
She also predicted that the attractive returns given in exchange for staking Ethereum tokens to facilitate transactions “may position Ether as an alternative to bonds or commodities for institutional investors.”
The proof-of-work mechanism rewards miners with Bitcoin tokens for approving legitimate transactions and rejecting fraudulent ones. On the other side, the staking option for Ethereum depends on individuals purchasing a large amount of Ether and then having faith in them not to harm the network.