While the Ethereum Merge failed to move Bitcoin from a price point of view, the industry believes that we have yet to see the effects of its switch from PoW to PoS.

It has been a month since Ethereum said goodbye to an essential feature that its blockchain shared with Bitcoin.
BTC

to mark
$19,785

. Called Ethereum Merge, the long-touted upgrade was widely celebrated in the blockchain ecosystem. However, to the general public or even the average marketer, it felt more like a Star Wars Day celebrated by sci-fi fans than an early Christmas.

When the Ethereum meltdown happened on September 15, the larger blockchain ecosystem broke away from Proof-of-Work (PoW), the energy-hungry consensus mechanism that makes Bitcoin work. The Ethereum blockchain now runs on a greener proof-of-stake (PoS) mechanism that requires no mining activity, leaving thousands of miners around the world scratching their heads.

In terms of price, Bitcoin has not yet been affected by the fundamental change of its closest competitor. A whole month has passed since the Ethereum merger, and the price of BTC is still between $18,000 and $20,000.

However, the overarching dominant narrative of “Bitcoin should contribute to the world, not destroy it by depleting energy resources” is being revived with Ethereum’s significant shift to a system that keeps the blockchain alive with minimal resource consumption.

Ethereum has avoided a dead end
Cointelegraph reached out to industry experts to get a clearer picture of the impact of the Ethereum Merge on Bitcoin.

“PoW was a dead end for Ethereum,” says Tansel Kaya, a professor at Kadir Has University and CEO of blockchain developer Mindstone, “because an Ethereum network that doesn’t scale can’t deliver on its promise.”

However, the Bitcoin community is not happy with the way its biggest prize competitor has taken, according to Kaya. The BTC community often criticizes PoS for being vulnerable to censorship, he commented, adding:

“If what [Bitcoin maximalists] say is true, Ethereum will become a compliant fintech network censored by governments, or a centralized structure like EOS, controlled by wealthy investors.”
Speaking to Cointelegraph, Gregory Rogers, CEO and founder of the cryptocurrency-based gifting platform Graceful, noted that the merger strengthened the positions of the two different blockchains in the market. “Ethereum remains the transaction chain of choice with its increased speed and low fees,” Rogers said, adding, “Bitcoin is now the store of value of choice. They were already going in that direction, but the merger removes that just up

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However, from a price point of view, the founder and CEO of UnicusOne, the multi-chain marketplace, Tashish Raisinghani, believes that the price of Bitcoin will take a hit. “The crypto industry has struggled due to macro-level challenges that have resulted in the current bear market,” he said, adding that the merger makes Ethereum more sustainable compared to Bitcoin, “which has yet to recover.” of the cutback of Chinese mining in 2021.

PoW is unmatched in network security
Addressing the energy side of the argument, John Belizaire, CEO of environmentally focused data center company Soluna Computing, told Cointelegraph that while switching from Ethereum to PoS could save energy, “it will also undermine the core aspect.” Decentralization of Crypto Currency”.

Although Bitcoin’s PoW consensus mechanism consumes a lot of energy, it is also fundamental to the blockchain and “is the best option for any cryptocurrency that prioritizes network security.”

Co-locating flexible crypto mining hubs with renewable power plants can help stabilize the power grid, solve the problem of wasted power from renewables, and provide an abundant source of cheap power for crypto miners, Belizaire added.

The merger brought crypto miners together
Bitmain also lowered the prices of Antminers, its flagship crypto-mining units, to help miners return profits, it added:

Despite the merger, Ether
ETH

to mark
$1,491

Miners will not simply give up PoW mining just because Ethereum Classic
ETC

to mark
for 23.66 US dollars

It is no longer dominated by mining, according to Anndy Lian, author of the book NFT: From Zero to Hero. Lian told Cointelegraph that the EthereumPoW (ETHW) project, the result of a hard fork after

Source: CoinTelegraph

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