Ethereum, the blockchain that powers ether (ETH), is the second-largest cryptocurrency in terms of market cap and worth nearly $200 billion. It will try to switch consensus mechanisms (how computers agree to determine the state of a network’s state) from proof–of-work to proof–of-stake.
What effect will the “the Merge” transition, also known as bitcoin ( Bitcoin ) have on the dominant cryptocurrency?
Most experts predict nothing will happen to Bitcoin immediately
Ethereum will have the greatest impact. Ethereum must first execute the Merge successfully. This is the most important step. Failure to execute the Merge would be catastrophic for Ethereum. This negative outcome is unlikely because of the amount of testing that the network has gone through over the last months.
However, the Merge will likely have a minimal impact on Bitcoin’s immediate future. Experts agree that any price movements resulting from the Merge on Bitcoin will likely be temporary. Since its inception, Ethereum’s move to proof-ofstake was a priority.
“Proof of-stake… was an important topic that was discussed from the beginning, and it’s now being implemented.” “It’s been a long process,” stated Ethereum co-founder Anthony Di Iorio during an interview on CoinDesk’s “First Mover” show.
It is reasonable to suppose that the Merge’s ripple effect has been at least partially incorporated into market prices.
“Certainty is starting to increase that the Merge will actually happen… so every single day you’re pricing in it in a little more,” stated Alex Miller CEO of Hiro. This is a Bitcoin-focused development shop affiliated with the Stacks Foundation.
Many people believe that Ethereum will one day surpass Bitcoin in market capitalization. This event is being called “the Flippening.