The host of the popular Coin Bureau YouTube channel is optimistic that the transition from Ethereum (ETH) to a proof-of-stakeconsensus mechanism will have a positive impact on the price of the second largest crypto asset market capitalization affect.
The pseudonymous host tells its 2.12 million YouTube subscribers that the effects of the merger will be felt in the long-term after more upcoming Ethereum upgrades like the Surge, the Rand, the Purge, and the Splurge are successfully rolled out.
“Well of course that [the merge] was a sell-the-news event and some were disappointed by the lack of fireworks on the day. But that was always to be expected.
Scaling benefits will only materialize with the increase. Then we can still look forward to the side edge, the purge and the splurge.
But right now, the predicted monetary changes are affecting ETH supply, emissions have dropped significantly and the inflation is tiny now.
While the effects of this will not be felt in the short term, it is something that is likely to have an impact over the longer term. It’s a much more compelling investment on that point alone.”
However, the Coin Bureau host says that the fact that a small number of companies are holding a disproportionate share of stakes in Ethereum post-merger is a major concern.
“After all, centralization is a problem. A situation where the top 5 staking companies control two-thirds of the ETH staking is not a good place.
Even more so when you consider that many of these validators are based in the United States. Whether they could be forced to follow the man’s instructions is an important question.”
Featured image: Shutterstock/Tithi Luadthong
Source: Crypto News Deutsch