“The Merge” – Ethereum’s impending transition to a proof-of-stake consensus potentially makes ETH more scarce than Bitcoin.
Ethereum researcher Vivek Raman believes that Ethereum (ETH)’s upcoming transition to proof-of-stake (PoS) consensus will allow it to take over Bitcoin (BTC)’s position as the dominant cryptocurrency. most on.
Raman said in an exclusive interview with Cointelegraph: “Ethereum does indeed have, only from an economic perspective and due to the effects of a supply shock, an opportunity to topple Bitcoin”.
The Merge, a long-awaited upgrade that will complete Ethereum’s transition from proof-of-work consensus to proof-of-stake consensus, will take place in September. Additionally, The Merge will transform Ethereum’s monetary policy, make the network more environmentally sustainable, and reduce the total supply of ETH by 90%.
Raman points out: “After The Merge, Ethereum will have lower inflation than Bitcoin. Especially with the burning of fees, Ethereum will deflate while Bitcoin will always be inflationary. Although, after each halving, the inflation rate will decrease”.
While Bitcoin will retain its functionality as digital gold, according to Raman, Ethereum will still have a “larger adoption space” as the base layer of the decentralized financial (Defi) economy.
The Merge will not bring down Ethereum’s high transaction fees, which is still the main issue preventing Ethereum from scaling. That shouldn’t be a problem, according to Raman, as Ethereum will rely on layer2 scaling solutions to support most user activity.
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