prices at the moment are not inspiring much confidence. However, the long-awaited network upgrades slated for this year and beyond could be a major boost for the crypto asset and its adoption.
Blockchain is a digital ledger that’s used for storing data on several servers across the world in a decentralized, trustless… More 2.0 not only heralds in a highly anticipated change in consensus mechanism; a raft of scalability solutions that could unlock the full potential of the network are also in the digital pipeline.
Ethereum Economic Cases
Partner at Metacartel Ventures, Adam Cochran, has taken a deep dive into the economic potential of Ethereum and how the next iteration of the platform could be a game-changer.
ETH 2.0 is only a few months away, and could prove to be the largest economic shift in society for a few key reasons.
Here is my 7 economic cases for how ETH will preform with the ETH 2.0 rollout. pic.twitter.com/fxIqu07xAb
— Adam Cochran (@AdamScochran) April 17, 2020
One possible reason is that large investors known as ‘rent-seekers’ may switch to Ethereum once Proof of work and proof of stake are both ways of achieving trustless and distributed consensus on the blockchain. Many… More is running. Stable returns of around 3-5% are eyed by these types of investors due to the scale of their principle.
If large quantities of ETH are purchased to make similar or better returns on staking, then the supply shock would drive up prices. This price surge, according to Cochran, could initiate a second round of staking investments as returns are multiplied.
The two events above would cause a retail fear of missing out event, pushing markets even higher. Retail investors are usually late to the party, but their actions could add to the market momentum as they did in 2017.
Additionally, there are far more fiat on-ramps now than there were three years ago, and better regulation has added…