Ethereum 2.0 Could Be the Greatest Economic Shift Ever: Venture Capitalist


Ethereum 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 Classic (ETC)

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.

One possible reason is that large investors known as ‘rent-seekers’ may switch to Ethereum once proof-of-stake 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…

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