Ethereum (
$0.00 ) researcher, Vivek Raman, is convinced that Ethereum ( $0.00 ) ’s (ETH) upcoming transition to a proof-of-stake system will enable it to take over Bitcoin (
$110,171.00 ) ’s (BTC) position as the most prominent cryptocurrency.
“ Ethereum ( $0.00 ) does have, just from an economic perspective and because of the effect of the supply shock, a chance to flip Bitcoin ( $110,171.00 ) ,” said Raman in an exclusive interview with Cointelegraph.
The Merge, a long-awaited upgrade that will complete Ethereum ( $0.00 ) ’s transition from a proof-of-work to a proof-of-stake system, is set to take place in September. In addition, The Merge will transform Ethereum ( $0.00 ) ’s monetary policy, making the network more environmentally sustainable and reducing ETH’s total supply by 90%.
“After The Merge, Ethereum ( $0.00 ) will have lower inflation than Bitcoin ( $110,171.00 ) . Especially with fee burns, Ethereum ( $0.00 ) will be deflationary while Bitcoin ( $110,171.00 ) will always be inflationary. Although, with every halving, the inflation rate goes down,” pointed out Raman.
While Bitcoin ( $110,171.00 ) will retain its function as digital gold, according to Raman, Ethereum ( $0.00 ) will still have “a larger adoption space” as the base layer of the decentralized finance (DeFi) economy.
The Merge won’t reduce Ethereum ( $0.00 ) ’s high transaction fees, which is still the main issue preventing Ethereum ( $0.00 ) from scaling. That is not an issue, according to Raman, as Ethereum ( $0.00 ) will rely on layer2 scaling solutions to support most users’ activity.
“Users need to learn that all of their activities should be on layer 2 and then layer 2s ultimately will use Ethereum ( $0.00 ) as a base layer 1 for settlement and security and decentralization.”
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