Bitcoiner Dan Held: Ethereum merger will ‘pressurize Bitcoin power consumption’

 

 

Some bitcoiners have been reluctant to say that the Ethereum merger will have any impact on their crypto assets of choice, but Dan Held is not counted among them.

Kraken’s head of growth marketing and a prominent Bitcoin influencer, who today calls himself the “most exclusive” in Bitcoin (rather than the full “maximalist”), said in the last episode of Decrypts gm podcast that the upcoming Ethereum merger is likely to intensify the attention of environmentalists who deny Bitcoin’s energy consumption.

“I think it will put pressure on Bitcoin power consumption, because they will point to Ethereum and say, ‘Hey, this blockchain’ – I’m speaking from a layman’s perspective here – ‘Blockchain doesn’t use a lot of energy at all, you’re consuming a lot. And that’s it. They won’t understand. Proof of stake in exchange for proof of work or something else.”

The merger will see the Ethereum network switch from a Proof of Work consensus model to a Proof of Stake. expected to happen On or about September 15.

Shift to the new consensus model Should Reducing the power consumption of the Ethereum network by 99%, according to the Ethereum Foundation. But despite the additional pressure that Bitcoin could bring from environmental critics, Held said he has yet to hear a credible reason why Bitcoin would abandon Proof of Work.

First of all, he referred to some of them Security issues surrounding the merger. Many users have indicated Dominance of some major interest groups To secure the network and the fact that government regulators may force them to block transactions from sanctioned entities Like Tornado Cash It is a major area of ​​interest and questions the idea of ​​Ethereum decentralization.

“If there is a catastrophic failure of the Ethereum protocol due to these trade-offs, yes, yes for sure, you reduce your power consumption by 99% but then the protocol fails,” Held said. “I’m not saying it will. I’m saying it opens up Ethereum to some technical attack vector that the Bitcoin community doesn’t want to do. That’s why they’re sticking with proof of work.”

Held added that one of the policy elements that he believes is working in favor of Bitcoin is the broader reassessment of ESG (Environmental, Social and Governance) policies. It’s an umbrella term that has been applied to everything from investment products, government policies, and corporate valuations.

Part of that surrounded the SEC’s attempt to do so Define the term and regulate how it is applied to investments. But even more pressing in the ESG turmoil is Europe’s uncertainty about whether the continent will have enough energy to see it through the winter.

As of Monday afternoon, Russia, which supplied Europe with 40% of Europe’s natural gas last year, has cut off supplies to the continent indefinitely in response to what it calls “punitive economic sanctions,” according to Russian media. Interfax.

“I think we’re seeing a kind of global decline in anti-waking energy,” Held said. “So it comes at a very, very opportune time for Bitcoin, when Europe is on the verge of a freeze due to its incredibly stupid ESG policies… I think, yes, global warming is human-caused, and global warming is there. I think the politically charged ESG requirements might help. or not help solve the problem.”

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