Ethereum researcher Vivek Raman believes that Ethereum’s (ETH) upcoming transition to a proof-of-stake system will permit it to take over Bitcoin’s (BTC) place as probably the most outstanding cryptocurrency.

“Ethereum has an opportunity to flip Bitcoin purely from an financial standpoint and due to the impression of the provision shock,” Raman stated in an unique interview with Cointelegraph.

The Merge, a long-awaited improve that can full Ethereum’s transition from a proof-of-work to a proof-of-stake system, is scheduled to happen in September. As well as, The Merge will change Ethereum’s financial coverage, make the community extra environmentally sustainable and scale back the entire provide of ETH by 90%.

“After The Merge, Ethereum could have decrease inflation than Bitcoin. Particularly with payment burns, Ethereum can be deflationary whereas Bitcoin will at all times be inflationary. Though the inflation charge falls with every halving,” Raman identified.

Whereas Bitcoin will retain its operate as digital gold, in response to Raman, Ethereum will nonetheless have “a wider acceptance house” as the bottom layer of decentralized finance (DeFi).

The merger is not going to scale back Ethereum’s high transaction charges, which continues to be the primary downside stopping Ethereum from scaling. In response to Raman, that is not an issue as Ethereum will depend on Layer2 scaling options to assist most customers’ actions.

“Customers must study that every one their actions ought to happen on Layer 2, after which Layer 2s will finally use Ethereum as the bottom Layer 1 for settlement, safety and decentralization.”

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