{"id":7914,"date":"2022-10-18T13:35:27","date_gmt":"2022-10-18T13:35:27","guid":{"rendered":"http:\/\/cryptoheretostay.com\/?p=7914"},"modified":"2022-10-18T13:35:28","modified_gmt":"2022-10-18T13:35:28","slug":"apples-and-oranges-how-the-ethereum-merge-could-affect-bitcoin","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=7914","title":{"rendered":"Apples and oranges? How the Ethereum Merge could affect Bitcoin"},"content":{"rendered":"<script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script>\n<p>It\u2019s been a month since Ethereum said goodbye to an essential feature its blockchain shared with Bitcoin (BTC). Called the Ethereum Merge, the long-hyped upgrade was widely celebrated, with the blockchain ecosystem. However, for the mainstream audience or even for the average trader, it felt more like a Star Wars Day celebrated by sci-fi geeks than an early Christmas.<\/p>\n<p>As the Ethereum Merge occurred on Sept. 15, the most extensive blockchain ecosystem parted ways with the proof-of-work (PoW), the energy-hungry consensus mechanism that makes Bitcoin tick. The Ethereum blockchain now works on a more eco-friendly proof-of-stake (PoS) mechanism that doesn\u2019t require any mining activities, leaving thousands of miners worldwide scratching their heads. <\/p>\n<p>Price-wise, Bitcoin is yet to take a hit from the fundamental shift of its closest competitor. A whole month has passed since the Ethereum Merge, and the BTC price is still stuck between $18,000 and $20,000. <\/p>\n<p>However, the overarching mainstream narrative of \u201cBitcoin should contribute to the world, not destroy it by depleting energy resources\u201d is rekindled with Ethereum\u2019s significant switch to a system that keeps blockchain alive with minimal resource consumption.<\/p>\n<h2>Ethereum avoided a dead end<\/h2>\n<p>Cointelegraph reached out to industry insiders to get a clearer picture of the Ethereum Merge\u2019s impact on Bitcoin.\u00a0<\/p>\n<p>\u201cPoW was a dead end for Ethereum,\u201d says Tansel Kaya, a lecturer at Kadir Has University and the CEO of blockchain developer Mindstone, \u201cBecause an Ethereum network that doesn&#8217;t scale can not live up to its promise.\u201d<\/p>\n<p>However, the Bitcoin community is not happy with the way its biggest price competitor took, according to Kaya. The BTC community often criticizes PoS for being vulnerable to censorship, he remarked, adding:<\/p>\n<p>\u201cIf what [Bitcoin maximalists] say is true, Ethereum will either turn into a docile fintech network that is censored by governments, or a centralized structure like EOS, controlled by wealthy investors.\u201d<\/p>\n<p>Speaking to Cointelegraph, Gregory Rogers, CEO and founder of crypto-based gifting platform Graceful.io, noted that the Merge solidified the two distinct blockchains\u2019 positions in the market. \u201cEthereum remains the transaction chain of choice with its increased speed and reduced fees,\u201d Rogers said, adding, \u201cBitcoin is now the store of value of choice. They were already headed in this direction, but the Merge simply clarifies it.\u201d\u00a0<\/p>\n<p><strong><em>Recent:\u00a0What new EU sanctions mean for crypto exchanges and their Russian clients<\/em><\/strong><\/p>\n<p>From a price point, though, multichain marketplace UnicusOne founder and CEO Tashish Raisinghani believes that Bitcoin price will take a hit. \u201cThe crypto industry had a hard time because of macro-level challenges which resulted in the current bear market,\u201d he said, adding that the Merge would make Ethereum more sustainable compared to Bitcoin, \u201cWhich hasn\u2019t yet been able to recover from the Chinese mining crackdown in 2021.\u201d<\/p>\n<h2>PoW is unrivaled in network security<\/h2>\n<p>Addressing the energy side of the argument, John Belizaire, CEO of eco-focused data center company Soluna Computing, told Cointelegraph that even though Ethereum\u2019s switch to PoS could save energy, \u201cIt will also undermine the core decentralization aspect of cryptocurrency.\u201d\u00a0<\/p>\n<p>Although Bitcoin\u2019s PoW consensus mechanism is energy-intensive, it is also fundamental to the blockchain and \u201cis the best choice for any cryptocurrency that prioritizes network security.\u201d <\/p>\n<p>Co-locating flexible crypto mining centers with renewable energy plants can help stabilize the electric grid, solve renewables\u2019 wasted energy issue, and provide an abundant source of cheap energy to crypto miners, Belizaire added.<\/p>\n<h2>The Merge united crypto miners<\/h2>\n<p>Bitmain also brought down the prices of Antminers, its flagship crypto mining units, to help miners get back into profits, he added: <\/p>\n<p>Despite the Merge, Ether (ETH) miners won\u2019t simply forgo PoW mining just because Ethereum Classic (ETC) is not minted via mining anymore, according to Andy Lian, author of the book <em>NFT: From Zero to Hero<\/em>. Lian told Cointelegraph that the EthereumPoW (ETHW) project \u2014 the result of a hard fork after the Merge \u2014 is working hard and the miner community is more united than ever.\u00a0<\/p>\n<p>\u201cThese various factors helped the miners offset their operating costs in this bear market, keeping them alive.\u201d\u00a0<\/p>\n<p>Joseph Bradley, the head of business development for Web3 service provider Heirloom, likened Bitcoin to \u201ca global risk asset that is correlated to TradFi markets.\u201d Bradley told Cointelegraph that, although Ether may be traded similarly, it still has neither the market depth nor the size that Bitcoin has. \u201cDo we expect the world to become more or less chaotic in the coming years?\u201d he asks rhetorically, answering:\u00a0<\/p>\n<p>\u201cMost people would lean towards more chaotic. Security will matter during this time. Bitcoin will become even more important. Expensive energy will create innovation with miners \u2014 They will most likely move toward positioning Bitcoin mining as an extension of the electrical grid itself.\u201d<\/p>\n<h2>Bitcoin and Ethereum: \u201cApples and oranges\u201d<\/h2>\n<p>Not everyone agrees that the Ethereum Merge will have an impact on Bitcoin, though. Martin Hiesboeck, head of research at crypto exchange Uphold, dismissed a direct comparison between Ethereum and Bitcoin as \u201capples and oranges.\u201d\u00a0<\/p>\n<p>Hiesboeck told Cointelegraph that Ethereum is basically a \u201ccompany controlled by venture capitalists,\u201d that\u2019s why the transition to proof-of-stake aims to improve its economic and environmental credentials:<\/p>\n<p>\u201cBitcoin doesn\u2019t need to do that. Bitcoin is not a brand. Bitcoin is a computer network. Its output represents money. Nobody owns it. There is no brand. No CEO.\u201d\u00a0<\/p>\n<p>Khaleelulla Baig, the founder and CEO of crypto investment platform Koinbasket, supported Hiesboeck\u2019s argument, telling Cointelegraph that the Merge won\u2019t have any meaningful impact on Bitcoin as these assets serve different purposes.\u00a0<\/p>\n<p><strong><em>Recent:\u00a0How decentralized exchanges have evolved and why it&#8217;s good for users<\/em><\/strong><\/p>\n<p>Bitcoin\u2019s purpose is \u201cto prove itself as a superior store of value to fiat currencies,\u201d according to Baig. The PoW mechanism goes well with the purpose of Bitcoin, \u201cAs it helps the network maintain the scarcity of 21 million BTC via its difficulty adjustment rate,\u201d he added.<\/p>\n<p>Bitcoin as a PoW and Ethereum as a PoS network are making significant contributions to the crypto-asset ecosystem by competing with their best features. Tansel Kaya summarizes: \u201cHaving two distinct approaches rather than one is more suitable for the spirit of decentralization.\u201d<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cointelegraph.com\/news\/apples-and-oranges-how-the-ethereum-merge-could-affect-bitcoin\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>It\u2019s been a month since Ethereum said goodbye to an essential feature its blockchain shared with Bitcoin (BTC). Called the Ethereum Merge, the long-hyped upgrade was widely celebrated, with the blockchain ecosystem. However, for the mainstream audience or even for the average trader, it felt more like a Star Wars Day celebrated by sci-fi geeks [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":7915,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[2],"tags":[],"class_list":["post-7914","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/7914","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7914"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/7914\/revisions"}],"predecessor-version":[{"id":7916,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/7914\/revisions\/7916"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/7915"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7914"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7914"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7914"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}