The Ethereum 2.0 upgrade, also known as “The Merge,” is expected to be released at the end of June. Ran Neuner, founder and host of The Crypto Banter and CEO of OnChain Capital, describes this development as “the biggest news in crypto today” for the leading altcoin.
Bitcoin vs Ethereum
According to experts, developers have successfully tested the combination of Ethereum’s Proof of Work (PoW) and Proof of Stake (PoS) Blockchains, which means ETH staking It will allow it to produce yields of up to 10% to 15%. Ran Neuner states that “Merger” will significantly reduce the carbon footprint of Ethereum, adding:
PoW is a very high electricity consumption, very high equipment consumption way of mining cryptocurrency or proving transactions. And one of the biggest criticisms Bitcoin has faced.
The famous CEO also says that the supply of Ethereum will shrink over time. “The second thing that is very, very interesting right now is that Ethereum has an unlimited supply,” said Ran Neuner.
Bitcoin has a limited supply of 21 million, but Ethereum has an unlimited supply, which means you could theoretically keep minting ETH forever and Ethereum is not scarce.
“Bitcoin or leading altcoin? My money is in ETH”
However, as we have mentioned in the news of Kriptokoin.com, Ethereum also has another mechanism called the burning mechanism. A certain number of Ethereums are burned each time a transaction is completed. Ran Neuner notes that this will reduce ETH emissions, the amount of Ethereum created every day, by 90%.
‘The Merge’ will reward Ethereum holders with higher yields when the token is staked. Famous CEO, who said, “Today, the return of staking Ethereum is 3.9%,” and states that when the merger takes place, the returns of Ethereum will be between 10% and 15% per year.
In theory, if the burn rate exceeds the rate at which new ETHs are created, the Ethereum supply will shrink indefinitely until it approaches zero, although Neuner notes that it may take “thousands of years”. According to Ran Neuner, Ethereum is becoming deflationary, so now there is an energy-efficient, deflationary asset.
The famous CEO is investing more in the leading altcoin Ethereum compared to Bitcoin as it sees more growth. However, he doesn’t think the ‘Ethereum Flippening’, the theory that Ethereum’s market cap will surpass Bitcoin, will happen anytime soon. Ran Neuner says:
Flippening, that’s a bit of an assertion. For now, if you ask me, can you hold a gun to your head and invest in just one, Bitcoin or the leading altcoin? My money is in ETH.
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