thecoinrepublic.com
- The Merge is the upcoming upgrade on the Ethereum Blockchain.
- It will shift the consensus algorithm from PoW to PoS.
- This move will make the Ethereum blockchain energy efficient.
BitMEX CEO Bullish on Ethereum
Arthur Hayes, the co-founder of BitMEX, a popular trader and cryptocurrency enthusiast, recently talked about the most anticipated upgrade on the Ethereum blockchain. In an interview with a news website, Hayes said that “He was long on Ethereum blockchain, as its issuance is anticipated to drop after the upgrade. Depending on the asset’s supply dropping and demand for it remaining, the value may rise.
Hayes highlighted that the blockchain’s post-merge issuance cut might be a considerable upward catalyst, to the point it may prove to be much more powerful than the present macro environment, which are looking for risk assets — involving cryptocurrencies and stocks — down-surged as central banks globally turn hawkish to taking a step against inflation
The Merge is anticipated to reduce the daily emission rate of Ethereum to 1,600 ETH, from nearly 13,000 ETH every day. Taking into consideration the network burn of Ethereum a substantial portion of transaction charges, some even recommend that crypto assets may become deflationary in the upcoming years.
He believes that if DeFi plunges with issuance as well, then the demand is more than the supply, therefore the value has to increase. BitMEXX co-founder thinks that the trade is a no-brainer as Ethereum will go through organizational changes. He also said that he bought call options of Ethereum with 3,000 USD strike price.
It is noteworthy that Arthur Hayes is popular for his admiration for ETH over the previous few months, suggesting that the asset may reach 10,000 USD levels at some point. Additionally he said that the upgrade’s effect on the industry might be stronger if the Merge didn’t come after the heavy downfall in the market. He says that this may be a “sell the news” scenario that witnesses the asset’s value rise up to 20% after the arrival.