Impact on Bitcoin | Switch of Ethereum | Experts Prediction

The Merge of ethereum is now one of the most burning issues which is being discussed everywhere. The researchers and analyst of blocks in technology are giving different types of predictions about the impact of this Merge. Today I am going to discuss about the impact of this event on its rivals like Bitcoin.

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What is Merge?

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Merge is the title of the event of ethereum blockchain to be switched from Proof of Work to Proof of Stake. This shift of consensus mechanism is going to be happened this month. Though it is a very complex and multi-step critical process, but this upgradation or change of the second largest cryptocurrency is intended for boosting the speed to make it more faster and also for making it more energy efficient and sustainable.

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How Ethereum will be benefited by the Merge?

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The most interesting feature of work of stake is its efficient working capacity in terms of speed and energy savings. After the event March ethereum will be able to complete about 01 thousand transactions per second. Besides it's energy consumption will become very low that will help the world to protest climate crisis.

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Probable impacts on Bitcoin

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As the second largest cryptocurrency of the world, Ethereum has to prove its competency against the other major cryptocurrencies like Bitcoin. So any change in Ethereum is supposed to facilitate or retarden the pace of other major cryptocurrencies. Now the uprising question is: What would be the impact of Merge of Ethereum to the valuation of Bitcoin?

Some experts are predicting that Bitcoin may lose its value due to the switch off ethereum that will cut off it's energy consumption by 99.95% than the previous Proof of Work system.

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An independent researcher and analyst, Mr. Kyle McDonald mentioned in a recent program about the Merge that:

When you’re moving from a system that is about generating as many random numbers as fast as possible with 10 million [graphic processing units] across the world, to a system that’s running on a few thousand computers that are pretty low energy, it’s going to make a huge difference.

Environmental aspects has a great impact on the crypto trading as the energy consumption by the crypto technology is becoming a vital issue on the debate against it. So some or many investors may be influenced to give up or sell Bitcoin type cryptocurrencies which is validated by the energy-intensive proof-of-work method. The successful transformation of Ethereum will prove that Proof-of-work method was not really essential at all.

Pic: Bitcoin Mining

Mr. McDonald predicted with a lot of confidence that Bitcoin will not reach at 69K USD rate again that was reached last November and he also suggested investors to sell it immediately.

I don't want to conclude such specific predictions like him, but it is not ignorable. We have to wait more for getting the result how Bitcoin faces the challenge and either it can overcome the problem or not.

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Thanks a lot.

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I am Tariqul Islam
a crypto lover..
Very much optimistic about the entire life.