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Bitcoin price has once again fallen below the closely watched $20,000 per bitcoin level while Ethereum price remains over 60% below its all-time highs (despite a Binance bomb).
Now, an independent bitcoin and crypto researcher has warned of an impending bitcoin price crash that could follow Ethereum’s “meltdown” transition to energy-efficient proof-of-stake, in addition to a potential event of “black swan” in September.
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“Ethereum [upgrade] is not just about ethereum,” said Kyle McDonald Coindesk. “I think after the merger, investors and regulators are going to realize that [bitcoin’s] proof of work was never really needed and we are slowly going to see a huge crash in bitcoin price.”
The price of bitcoin hit an all-time high of nearly $70,000 late last year, but crashed along with tech stocks that had soared during the era of historically low interest rates and monetary stimulus.
“Bitcoin will never hit $69,000 again; now is the perfect time to sell all your bitcoin,” McDonald added, pointing to the “climate crisis” that is potentially exacerbated by bitcoin’s huge energy demands. “Bitcoin lacks the coordination like Ethereum to leave proof of work.”
Ethereum’s transition to proof-of-stake could reduce carbon emissions from the blockchain network by 99%, according to the Ethereum Foundation. The change, which is due to begin this week before being completed between September 10 and 20, will mean that the Ethereum network is secure and transactions are confirmed by Ethereum holders “throwing” their coins instead of relying on so-called minors.
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McDonald predicts that “bitcoin will likely be the first to be regulated” due to its reliance on the proof-of-work consensus mechanism. Others have previously suggested that regulators could target proof-of-work blockchains such as bitcoin because of its energy requirements.
Last year, Swedish financial and environmental regulators called on the European Union to ban bitcoin and cryptocurrency mining due to its environmental impacts.
“[Bitcoin] is not a reasonable use of our renewable energy,” the directors of Sweden’s top financial and environmental regulators wrote in an open letter.