Ethereum ‘merge’ clears path for ESG-minded corporate investors

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Ethereum is now much more cost effective to use than Bitcoin, the most popular coin in the crypto market.

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Rypto investors around the world heaved a sigh of relief this morning as one of the largest digital currencies, Ethereum, changed its switch to a proof-of-stake coin, clearing a path towards more investment from ESG-conscious corporate investors. Transition completed.

The transformation of the $200 billion-market-cap cryptocurrency promises to deliver enormous energy efficiency, making Ethereum more cost-effective to use than the market’s most popular coin, Bitcoin.

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According to estimates from Cambridge University, Ethereum is likely to make a more attractive proposition for investors expressing concerns about bitcoin mining, which has consumed 380 terawatt-hours of electricity over the past year. Last year, Tesla boss Elon Musk said the carmaker would stop accepting bitcoin as a means of payment for its vehicles, citing concerns over the amount of fossil-fuel-generated electricity used for the coin. Happened.

Conor Svensson, CEO and founder of Web3 Labs, said: “I believe Ethereum will overtake Bitcoin in the long run.

“If you are a corporate looking to invest in cryptocurrencies, given the ESG narrative, I think a lot of them would be a little hesitant to be exposed to bitcoin when it is another asset that generates large amounts of electricity. does not use.”

The market reaction to ‘Merge’ so far has been muted. Ethereum price rose 2.5% to £1,423 at the time of the merger, with gains diminishing in the next hour.

While the merger is formally completed, it may take some time for the full effects of the transition to be felt.

Sean Dickens, cryptocurrency expert at fintech firm Kinesis Money, said: “On the surface things may be good but behind the scenes you never really know. [But] If things start going wrong a lot of people will become aware.”

Credit: www.standard.co.uk /

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