The expert explains how Ethereum’s transition to the green blockchain will affect bitcoin

Dan Held, head of marketing at Kraken, believes that Ethereum’s transition to the Proof-of-Stake (PoS) algorithm will cause more problems in the cryptocurrency industry. Held believes that the network’s transition to a «green» blockchain will be a strong argument in the hands of environmentalists against bitcoin, which uses the energy-consuming Proof-of-Work (PoW) consensus mechanism.

«I am sure that the upcoming Ethereum merger will significantly increase the pressure on bitcoin because of its energy consumption. Environmentalists will point to Ethereum and say: „This blockchain uses very little energy, unlike bitcoin.“ At the same time,they will not explain to anyone what the proof-of-work algorithm and the proof-of-stake algorithm are,» Held said.

The top manager highlighted some security issues due to the upcoming Ethereum merger. According to him, the network could theoretically be controlled by companies that own the largest stakes in it and block «unwanted» protocols by government order. This could result in a «catastrophic failure» that would jeopardize the entire network. The Bitcoin community does not want to take such risks, Held said, and therefore remains on the PoW algorithm.

Held added that many companies are now reviewing their ESG (environmental, social, and corporate governance) policies, a set of principles for moderate energy consumption that they use to build their businesses.