Rypto investors around the world are holding their breath as one of the biggest digital currencies, Ethereum, begins its weeks-long transition to a proof-of-stake currency. The transformation of the $200 billion cryptocurrency promises to deliver huge energy efficiency, making Ethereum much more economical to use compared to the market’s most popular currency, Bitcoin. But the scale and complexity of the project means that one wrong move could prove disastrous for the currency’s future and send shockwaves through the wider crypto market. Dr Anna Becker, CEO of crypto algorithmic investment platform EndoTech, told the Standard: “If it happens and everything goes smoothly, we’re moving into a new era and it’s hugely exciting for the whole industry. But, as with many other projects, it can happen that obstacles will be encountered and it will not go as smoothly as we hope. “Ethereum is the infrastructure for a lot of companies to manage their blockchains, so if something goes wrong we have industry disruption … it’s going to be pretty disruptive for the industry to survive this time.” The price of Ethereum has risen 5% in the past five days as investors pin their hopes on the ability of the currency’s yield gains to make it a more widely accepted means of payment.
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Last year, Tesla boss Elon Musk said the automaker would stop accepting Bitcoin as a means of payment for its vehicles, citing concerns about the amount of fossil fuel-generated electricity used to mine the currency. Bitcoin mining has consumed over 380 terawatt hours of electricity in the past year, according to Cambridge University estimates, which represents more electricity than was consumed in the UK over the same period. “Ethereum is the new hope of the market, so we expect it to become a leading index and a leading coin with the market,” Becker said. “Cryptocurrency can become the currency used for everyday use, and then it will become extremely widespread.”
