Ethereum blockchain is expected to switch to new drastically less energy consumption method for validating transactions called as the Proof of Stake (PoS).
As per Kyle McDonald, who is an independent researcher, speaking to Coindesk's TV predicts, Bitcoin may be regulated away which could cause the prices of Bitcoin collapse.
He recommends selling bitcoin now. The reason is Ethereum's new Proof of Stake model. This could lead the investors and regulators to realize that the 'proof of work' method used for both Bitcoin and Ethereum which is using intensive energy is not necessary anymore.
The Ethereum Foundation claims the much inticipated Merge from Proof of Work to Proof of Stake this September that will significantly reduce the blockchain's energy consumption by around 99.95%.
Now this claim does look to be unrealistic but according to McDonald it is possible. According to McDonald, considering the climate crisis and Bitcoin's huge energy consumption, Bitcoin does not have the model like Ethereum to move from Proof of Work, thus making it more vulnerable to be regulated away.
The crypto energy consumption is a matter of contention for the environmental activists and governments, and Bitcoin will never see $69,000 again, he further added.
Ethereum's software update The Merge is expected to happen this September, and one expected benefit is, it will not require many computers in running the network. According to McDonald, the claim of cutting around 99.95% of energy consumption is realistic.
This may not be something Bitcoin advocates would like to see or may not agree with the views of Kyle McDonald. But who knows the future and taking in consideration the unpredictability of the crypto market, this might happen.
I don't think this could happen overnight considering Bitcoin’s market cap, community, status and probably a few other things.
What are your thoughts about McDonald's views?