Only Bitcoin’s PoW works, Ethereum is doomed after switching to PoS
- Saylor insists that proof-of-work is the only way to create a digital commodity.
- ETH’s price has dipped after the Merge, while BTC’s price shows more momentum.
On Saturday, famous Bitcoin advocate, Michael Saylor, stated that Bitcoin is becoming stronger despite the Ethereum Merge. According to Saylor, proof-of-work (PoW) is the globally accepted and proven way to create a digital commodity.
Completing the Ethereum Merge means that the Ethereum network no longer operates as a proof-of-work consensus mechanism but is now governed by proof-of-stake. The Merge of the Ethereum mainnet to the beacon chain happened two days ago (September 15, 2022).
Before it happened, the Merge was the hottest topic of discussion across the crypto space and even the traditional finance community. While speaking at a conference in Australia on Saturday, Saylor shared his insights on what happens to Bitcoin following the Ethereum Merge.
One of the biggest advocates of Bitcoin said the software update of the Ethereum blockchain serves to boost the outlook for the world’s largest cryptocurrency https://t.co/9deukFBHRn
— Bloomberg (@business) September 17, 2022
Saylor said Bitcoin would keep getting stronger after the Merge. He added that PoW is the most proven way of creating a digital commodity. Saylor had previously called Ethereum a “security.” following Ethereum’s switch, Bitcoin now controls 95 percent overall market share of tokens operating under the PoW consensus mechanism.
“I foresee that Bitcoin will only become stronger. It won’t be weaker. PoW is the best way worldwide to establish a digital commodity.” One major criticism of Bitcoin and other PoW networks is their high carbon footprint. However, Ethereum’s switch to a PoS means its energy consumption has reduced by 99.5 percent as PoS is less energy intensive.
Earlier in the week, SEC chief, Gary Gensler, claimed that Ethereum’s switch to PoS means it’s now “a security” based on the Howey test. Saylor also claims that Bitcoin mining is the cleanest and the most efficient use of electricity industrially. Furthermore, Bitcoin miners are switching to more sustainable energy sources to enhance the network’s energy efficiency.
The Microstrategy CEO added that Bitcoin has enabled the monetization of unused methane gas and natural gas energy sources. Nevertheless, Microstrategy continues to increase its Bitcoin holdings. On September 10, the company filed with the sec to purchase more BTC.
According to the filing, Microstrategy would sell $500 million worth of MSTR stocks to fund this purchase. Currently, the firm’s total Bitcoin holdings are 129,699 BTC. Interestingly, Microstrategy only holds 14,589 BTC, while its subsidiary Macrostrategy holds the remaining 115,110 BTC.
BTC price vs. ETH price after the Merge
Many industry analysts forecasted that Ethereum would become the leading digital asset ahead of Bitcoin after the Merge. But that hasn’t happened yet. Instead, ETH’s price has dropped following the Merge. Ethereum’s price has dropped to its support at $1,430 and risks dropping to $1,000 if it keeps falling.
ETH is down 1.64 percent in the last 24 hours and currently trades at $1,434, according to the latest Coinmarketcap data. Conversely, BTC’s price has been gaining more momentum since the Merge. Bitcoin is up 0.73 percent in the last 24 hours and trades at $19,886.
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