Crypto investors hold their breath as $200 billion at risk in Ethereum merger
Rypto investors around the world are holding their breath as one of the biggest digital currencies, Ethereum, begins its weeks-long transition to a proof-of-stake coin.
The transformation of the $200 billion market cap cryptocurrency promises to deliver huge energy savings, making Ethereum much more cost-effective to use compared to the market’s most popular coin, Bitcoin. But the scale and complexity of the project means that a single misstep could prove disastrous for the future of the coin and send shockwaves through the entire crypto market.
Dr Anna Becker, CEO of algorithmic crypto investment platform EndoTech, told The Standard: “If this happens and all goes well, we are entering a new era and it is extremely exciting for the whole world. sector. But as with many other projects, there may be times when we run into obstacles and things don’t go as well as we hoped.
“Ethereum is the infrastructure for many companies to run their blockchains, so if something goes wrong we will have the industry shut down…it will be quite difficult for the industry to survive this period. “
Ethereum’s price has risen 5% in the past five days as investors pin their hopes on the ability of the coin’s efficiencies to make it a more widely accepted means of payment.
Last year, Tesla boss Elon Musk said the automaker would stop accepting Bitcoin as payment for its vehicles, citing concerns about the amount of fossil fuel-generated electricity used to extract the room.
Bitcoin mining has consumed more than 380 terawatt hours of electricity over the past year according to estimates by the University of Cambridge, which is more electricity than was consumed in the UK over the past year. same period.
“Ethereum is the market’s new hope, so we expect it to become a leading index and a leading coin with the market,” Becker said.
“Cryptocurrency can become the currency used in everyday life, and then it will become extremely widespread.”
#Crypto #investors #hold #breath #billion #risk #Ethereum #merger #Crypto