dailyhodl.com
The host of the popular Coin Bureau YouTube channel is optimistic that the transition of Ethereum (ETH) to a proof of stake consensus mechanism will positively impact the price of the second-largest crypto asset by market cap.
The pseudonymous host tells his 2.12 million YouTube subscribers that the impact of the merge will be felt over the long-term after other upcoming Ethereum upgrades such as the surge, the verge, the purge, and the splurge are successfully rolled out.
“Now of course this [the merge] was a sell-the-news event and some have been disappointed about the lack of fireworks on the day. But this was always to be expected.
Scaling benefits will not come until the surge. Then we have the verge, purge and splurge still to look forward to.
But at this very moment, the predicted monetary changes are having an impact on ETH supply, emissions have dropped considerably and inflation is now minuscule.
Now while the impact of this won’t be felt in the short term, it’s something that is likely to play out in the longer run. It’s that much more of a compelling investment based on this point alone.”
The Coin Bureau host, however, says that the fact that a small number of entities hold a disproportionate amount of the staked Ethereum following the merge is a major concern.
“Now all of this being said, centralization is a concern. A situation where the top-five staking entities control two-thirds of the staked ETH isn’t a great place to be.
And this is even more so the case when you consider the fact that many of these validators are based in the United States. Whether they could be forced to comply with orders from the man is an important question.”