Kyle McDonald, an independent researcher, predicts that the bitcoin network may become “regulated,” causing its price to drop.
and advise to sell bitcoin now, This is because there is a much less energy-intensive method for validating transactions since the Ethereum blockchain, which is known as “Proof of stake or merger”Investors and regulators may feel that the energy-intensive method that both bitcoin and Ethereum now use, known as “proof of work”, was never really needed.
Speaking on CoinDesk TV’s “First Mover” show this Friday, McDonald cited the “climate crisis” and the massive energy use of bitcoin. He said that because “Bitcoin does not have the coordination of Ethereum to leave proof of work”, could be “the first to be regulated”.
Crypto electricity consumption has become a major bone of contention for environmental activists and governments, with McDonald’s saying bitcoin will never see “$69,000” again. The cryptocurrency was trading close to that mark last November.
When you go through a system with 10 million it’s all about generating random numbers as fast as possible Worldwide, for systems running on a few thousand computers that consume significantly less power, it will make a big difference. McDonald said. Graphics processing units or GPUs are used in cryptocurrency mining.
McDonald said the prospect of Ethereum reducing energy costs by 99.95% is “very realistic”.
Ethereum’s Switch, a software update called “The Merge,” is expected this month, and one of the expected benefits is that it won’t require multiple computers to keep the blockchain running.
To track the energy movement of Ethereum, McDonald’s created the Ethereum Emission Tracker, which takes a bottom-up approach but does not take into account the price of Ethereum or the price of electricity.
I’m starting with hash rate, then I look at the hardware and make a technical argument about how much power to use, Told.
However, one risk pertains to non-fungible tokens (NFTs), McDonald said. That is, “there is a good chance that some miners will temporarily switch to proof of work after the merger occurs.”
If miners change, there could be duplicate NFTs on the second chain for a short period of time, he said. If it does, it could “potentially undermine their values as well.”
But OpenSea, the world’s largest NFT marketplace, said it will only support proof-of-stake chains, adding that it is preparing for the transition to ensure “The process runs smoothly.“