- The time range for “merging,” as the event is called, is September 15-20.
- Investors who are prohibited from getting Proof of Work crypto may be free to get ETH.
According to a study conducted by Bank of America, institutional investment in cryptocurrency may increase after the upcoming Ethereum Proof of Stake merger.
The environmental impacts of Proof of Work (PoW) systems such as Bitcoin (BTC) have been a frequent target of criticism. Keeping thousands of nodes online takes a huge amount of energy. Investing in assets that harm the environment displeases many financial institutions and private investors. On the other hand, Ethereum (ETH) is preparing to move to a file proof of stake (PoS) consensus mechanism for some time.
The time range for “merging,” as the event is called, is September 15-20. In addition, Bank of America (BAC) claims that after the transition is complete, there could be great potential for financial institutions and ETH.
BAC claims that once the Ethereum blockchain is switched, investors who are banned from acquiring PoW-based cryptocurrencies may be free to acquire ETH. Many organizations find the coding ecosystem too restrictive. So, now that Ethereum does not need miners, a variety of financial institutions may start investing in the asset.
Analysts at BAC believe that the ability to share ETH and offer high-quality payments as a validator, or via staking, could also lead to institutional adoption.
The financial institution said that Nexus Mutual, a decentralized insurance protocol, must generate profit in order to compete with traditional insurers. Investments in corporate and government debt are common to insurers’ reserves. However, it can be difficult to find tools in the digital asset ecosystem that have the same level of risk and potential return. BAC notes that staking Ethereum may be the next best option.
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