Crypto Community Enters Controversial Debate About BTC Adopting PoS By CoinEdition

• The crypto community is debating whether it will follow along to adopt proof of stake.
• The founder of the Ethereum founder retweeted that after the merger, worldwide electricity consumption will decrease by 0.2%.
• the German bank (ETR:) researcher predicted Ether as an alternative to bonds or commodities for institutional investors.

The crypto community is entering a controversial argument over whether Bitcoin would follow Ethereum now that the long-awaited network upgrade is over.

The merger, a modification of the Ethereum (ETH) blockchain’s token creation and transaction ordering, occurred early Thursday. The process involves a transition to the proof-of-stake model, which involves setting up ETH as part of sorting transactions and minting currencies.

According to some estimates, the change will make Ethereum 99% more energy efficient, which will satisfy regulators and institutional investors who have long complained about how carbon-intensive crypto is. Vitalik Buterin, the founder of Ethereum, retweeted on Thursday that after the merger, worldwide electricity consumption will decrease by 0.2%.

“The merger will reduce worldwide electricity consumption by 0.2%” – @drakefjustin

— vitalik.eth (@VitalikButerin) September 15, 2022

On the other hand, verified handle punk6529 claimed that “the optimal outcome for cryptocurrency at large at this stage is Bitcoin using Proof of Work and Ethereum using Proof of Stake.” They believe it would be better to “experiment in parallel with the two largest ecosystems and have more ways to win.”

Deutsche Bank research analyst Marion Laboure said authorities could “progressively force the proof-of-work cryptocurrencies to cut down on energy use” if Ethereum’s new staking method proves to be more environmentally friendly.

She also predicted that the attractive returns provided in exchange for staking Ethereum tokens to facilitate transactions “could position Ether as an alternative to bonds or commodities for institutional investors.”

The proof-of-work mechanism rewards miners with Bitcoin tokens for approving legitimate transactions and rejecting fraudulent transactions. On the other hand, the staking option for Ethereum depends on individuals buying a large amount of Ether and then having faith that they will not damage the network.

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