Merger is Ethereum's chance to take over Bitcoin, researcher says
Ethereum's impending transition to a proof-of-stake consensus mechanism will transform its monetary policy, potentially making ETH rarer than gold. Bitcoin.
Cointelegraph YouTube SubscribeEthereum researcher Vivek Raman is confident that Ethereum (ETH)'s upcoming transition to a proof-of-stake system will allow it to take over Bitcoin's (BTC) position as a crypto- most important currency.
“Ethereum has, purely from an economic perspective and due to the effect of the supply shock, a chance to topple Bitcoin,” Raman said in an exclusive interview with Cointelegraph.
[embedded content]The Merge, a long-awaited update that will complete Ethereum's transition from a proof-of-work to a proof-of-stake system, is set to take place in September. Additionally, The Merge will transform Ethereum's monetary policy, making the network more environmentally sustainable and reducing the total supply of ETH by 90%.
"After the merger, Ethereum will have lower inflation than Bitcoin. Especially with the fee cuts, Ethereum will be deflationary while Bitcoin will still be inflationary. Although with each halving, the inflation rate decreases “, stressed Raman.
While Bitcoin will retain its function as digital gold, according to Raman, Ethereum will still have “wider adoption space” as the foundation layer of the decentralized finance (DeFi) economy.
The merger will not reduce Ethereum's high transaction fees, which remains the main issue preventing Ethereum from growing. This is not a problem, according to Raman, as Ethereum will rely on Layer 2 scaling solutions to support most user activity.
"Users need to learn that all of their activities must be on Layer 2, and then Layer 2s will eventually use Ethereum as their base Layer 1 for settlement, security, and decentralization."
Watch the full interview on our YouTube channel and don't forget to subscribe!
Ethereum's impending transition to a proof-of-stake consensus mechanism will transform its monetary policy, potentially making ETH rarer than gold. Bitcoin.
Cointelegraph YouTube SubscribeEthereum researcher Vivek Raman is confident that Ethereum (ETH)'s upcoming transition to a proof-of-stake system will allow it to take over Bitcoin's (BTC) position as a crypto- most important currency.
“Ethereum has, purely from an economic perspective and due to the effect of the supply shock, a chance to topple Bitcoin,” Raman said in an exclusive interview with Cointelegraph.
[embedded content]The Merge, a long-awaited update that will complete Ethereum's transition from a proof-of-work to a proof-of-stake system, is set to take place in September. Additionally, The Merge will transform Ethereum's monetary policy, making the network more environmentally sustainable and reducing the total supply of ETH by 90%.
"After the merger, Ethereum will have lower inflation than Bitcoin. Especially with the fee cuts, Ethereum will be deflationary while Bitcoin will still be inflationary. Although with each halving, the inflation rate decreases “, stressed Raman.
While Bitcoin will retain its function as digital gold, according to Raman, Ethereum will still have “wider adoption space” as the foundation layer of the decentralized finance (DeFi) economy.
The merger will not reduce Ethereum's high transaction fees, which remains the main issue preventing Ethereum from growing. This is not a problem, according to Raman, as Ethereum will rely on Layer 2 scaling solutions to support most user activity.
"Users need to learn that all of their activities must be on Layer 2, and then Layer 2s will eventually use Ethereum as their base Layer 1 for settlement, security, and decentralization."
Watch the full interview on our YouTube channel and don't forget to subscribe!
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