The Ethereum Merge is upon us, and BitMEX’s CEO believes that it will trigger volatility in the market.
BitMEX CEO Alexander Höptner told Cointelegraph in a recent interview that the Ethereum Merge can trigger high volatility in the broader cryptocurrency market.
The Ethereum Merge is taking place this month, and the event will see the Ethereum network transition from a proof of work (PoW) to a proof of stake (PoS).
Höptner said in addition to checking all the boxes on standard company preparations ahead of big events, developers have to pay close attention to what might happen and ensure that their services remain operational. He said;
“You have to be just, let’s say, awake and see what happens. There’s a chance for high volatility. And so you have to make sure that your services are up and running. […] We don’t expect any major disruptions outside of volatility.”
There are talks within the Ethereum community about a possible fork as some elements want to continue using the PoW mechanism. The BitMEX CEO said a fork would be good if there is a strong community behind it. He added that a major risk for forks is the lack of support from cryptocurrency miners.
Many believe that the Merge will boost institutional adoption of the Ethereum blockchain. Höptner said the PoS is more attractive to institutions due to its environmentally-friendly nature. He said:
“I’m absolutely sure that this will further push for institutional adoption and also mass market adoption because […]nerally the current generation pays close attention to the whole efficiency, environmental development.”
He added that institutional investors are already in the cryptocurrency space, with most of them currently focusing on Bitcoin and Ether. The CEO said BitMEX doesn’t think we are in a bear market but rather in a market correction. He said;
“Beforehand, it was very overheated in the market. Money was too cheap, and this is now a slight correction, but we are very bullish on Bitcoin, very bullish on ETH, especially for proof-of-stake.”
The prices of most cryptocurrencies are down by more than 60% from the all-time high they recorded late last year.
Source link By Hassan Maishera