The Merge is Ethereums chance to take over Bitcoin, researcher says – Cointelegraph

Ethereum researcher, Vivek Raman, is convinced that Ethereums upcoming transition to a proof-of-stake (PoS) system will enable it to take over Bitcoins (BTC) position as the most prominent cryptocurrency.

Ethereum does have, just from an economic perspective and because of the effect of the supply shock, a chance to flip Bitcoin, said Raman in an exclusive interview with Cointelegraph.

The Merge, a long-awaited upgrade that will complete Ethereums transition from a proof-of-work (PoW) to a proof-of-stake system, is set to take place in September. In addition, The Merge will transform Ethereums monetary policy, making the network more environmentally sustainable and reducing ETHs total supply by 90%.

After The Merge, Ethereum will have lower inflation than Bitcoin. Especially with fee burns, Ethereum will be deflationary while Bitcoin will always be inflationary. Although, with every halving, the inflation rate goes down, pointed out Raman.

While Bitcoin will retain its function as digital gold, according to Raman, Ethereum will still have a larger adoption space as the base layer of the decentralized finance (DeFi) economy.

The Merge wont reduce Ethereums high transaction fees, which is still the main issue preventing Ethereum from scaling. That is not an issue, according to Raman, as Ethereum will rely on layer-2 scaling solutions to support most users activity:

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The Merge is Ethereums chance to take over Bitcoin, researcher says - Cointelegraph