Staking May Cause a New “Ether Rally”
By Marko Vidrih on The Capital
Adam Cochran, a partner at MetaCartel Ventures and director of strategy at DuckDuckGo, on his Medium blog outlined a few arguments as to why Ethereum 2.0 could be the biggest economic shift in society.
According to Cochran, staking will lead to a shock in the air. A stable reward of 3–5% will attract capital from large investors until about 30% of the total supply is blocked in staking. This shock of the offer will create FOMO among retail investors who are not interested in technical details and “just want to be in the game.
In addition, unlike the 2017 bull rally, when transferring fiat to crypto exchanges was a problem, FOMO will only grow, since it is much easier for newcomers to buy a cryptocurrency for fiat.
“At the time Coinbase had only ~5M users, and you couldn’t buy crypto via fiat on exchanges like Binance.
Now cash onramps are everywhere (thanks to @sendwyre and @simplex) and Coinbase has 30M+ users, all verified and ready to go,” Cochran writes.
Also, the infrastructure of Ethereum will be much better adapted to high loads: With the release of Ethereum 2.0, the developers plan to significantly increase the data transfer speed and, consequently, its commercial and consumer attractiveness. High transaction fees and delays in decentralized applications will disappear even in a very active market.
Author: Marko Vidrih
Featured image credit: Pixabay
