Ethereum researcher, Vivek Raman, is satisfied that Ethereum’s (ETH) upcoming transition to a proof-of-stake system will allow it to take over Bitcoin’s (BTC) place as probably the most distinguished cryptocurrency.
“Ethereum does have, simply from an financial perspective and due to the impact of the availability shock, a chance to flip Bitcoin,” mentioned Raman in an unique interview with Cointelegraph.
The Merge, a long-awaited improve that may full Ethereum’s transition from a proof-of-work to a proof-of-stake system, is set to take place in September. As well as, The Merge will rework Ethereum’s financial coverage, making the community extra environmentally sustainable and lowering ETH’s whole provide by 90%.
“After The Merge, Ethereum could have decrease inflation than Bitcoin. Particularly with payment burns, Ethereum shall be deflationary whereas Bitcoin will at all times be inflationary. Though, with each halving, the inflation charge goes down,” identified Raman.
Whereas Bitcoin will retain its perform as digital gold, in accordance to Raman, Ethereum will nonetheless have “a larger adoption space” as the bottom layer of the decentralized finance (DeFi) economic system.
The Merge received’t cut back Ethereum’s excessive transaction charges, which is nonetheless the principle subject stopping Ethereum from scaling. That is not a problem, in accordance to Raman, as Ethereum will depend on layer2 scaling options to help most customers’ exercise.
“Users need to learn that all of their activities should be on layer 2 and then layer 2s ultimately will use Ethereum as a base layer 1 for settlement and security and decentralization.”