Ethereum merge delay could upset its chances of displacing Bitcoin

LAGOS (CoinChapter.com) — Ethereum the second-largest cryptocurrency by market cap has encountered several challenges in its bid to upgrade its system from a proof-of-work to a proof-of-stake.

The upgrade is expected to make the blockchain platform faster, cheaper, and more environmentally friendly. Additionally, it is theorized that the upgrade will also boost Ethereum blockchain helping it to surpass Bitcoin as the largest cryptocurrency.

However, delays in an overhaul of its underlying blockchain network among other factors have resulted in the upgrade postponement.  Recall, that a major change in the Ethereum blockchain was expected in June.

Tim Beiko, an Ethereum core developer disclosed that the merge will no longer happen in June. Beiko explained that there’s currently no firm date for the upgrade, but it’ll likely happen in a couple of months.

The delay and continued anticipation have resulted in frustration, skepticism, and anxiety among investors. Brendan Playford, founder, and CEO of Masa Finance indicated that the launch might continues to be extended. He said:

“It’s certainly plausible that Ethereum’s highly anticipated upgrade to a proof-of-stake system could be delayed again given that this transition is highly complicated and still uncertain as to whether it can actually deliver on its promise of lowering costs and increasing transaction speeds.”

As the time for the upgrade to have the desired effect is ticking fast Ether has promised to do better. Many investors and crypto watchers have also speculated that the merge will definitely happen this year.

Why Is Ethereum Upgrading To Proof-of-stake?

Ethereum’s transition to a proof-of-stake system is due to several factors mainly for the sustainability of the blockchain network.

Currently, Bitcoin and Ether are mined, or produced, using a proof-of-work (POW) method. This method consumed much energy, burning fossil fuels and causing environmental campaigns against crypto assets.

However, the proof-of-stake (PoS) method uses much less power. Rather than mining with millions of computers, PoS allows nodes that stake the most coins to validate transactions.

The upgrade will also cut traffic congestion on the blockchain network and reduce high transaction fees. Furthermore, it would help Ethereum defeat its crypto rivals such as Cardano and Solana and also outshine Bitcoin.

Bitcoin is the largest cryptocurrency by market value at over $804 billion. But Ether with a current market cap of more than $360 billion could displace it after the upgrade.

Additionally, switching to PoS should also reduce growth in the supply of ETH, invariably boosting the token price.

Why Ether Could Displace Bitcoin As Top Digital Asset

Although Bitcoin is the leading cryptocurrency, Ethereum on the other hand has arguably more relevance in the blockchain industry.

Unlike Bitcoin, Ethereum has more use cases as it is the leading network for smart contracts and decentralized finance (DeFi) projects. The network also powers the second largest digital asset as well as a range of other crypto trading and lending activity.

In addition to powering ETH, the Ethereum blockchain host most of the non-fungible tokens (NFTs) projects. Notably, due to the high number of platforms, apps, and services running on its network, Ethereum will always be a threat to Bitcoin’s dominance.