Altcoin News- The date range for “the merge,” as the event is being called, is September 15th to the 20th.
- Investors who are restricted from acquiring PoW-based crypto may be free to acquire ETH.
According to a Bank of America study, institutional investment in cryptocurrencies may increase after the forthcoming Ethereum Merge to Proof-of-Stake.
The environmental impacts of Proof-of-Work (PoW) systems like Bitcoin (BTC) have been a frequent target of criticism. Keeping thousands of nodes online consumes an enormous amount of power. Investing in assets that harm the environment is frowned upon by many financial institutions and private investors. Ethereum (ETH), on the other hand, has been preparing a transition to a Proof-of-Stake (PoS) consensus mechanism for some time.
Appealing Transition
The date range for “the merge,” as the event is being called, is September 15th to the 20th. In addition, the Bank of America (BAC) claims that after the transition is complete, there may be significant prospects for financial institutions and ETH.
The BAC claims that once the Ethereum blockchain switches, investors who are restricted from acquiring PoW-based cryptocurrencies may be free to acquire ETH. Many organizations find the crypto ecosystem too restrictive. So, now that Ethereum doesn’t need miners, a wide variety of financial institutions may start investing in the asset.
Analysts at BAC believe that the ability to stake ETH and deliver a higher-quality payout as a validator, or via a staking service, may also drive institutional adoption.
The financial institution said that Nexus Mutual, a decentralized insurance protocol, must generate a profit in order to compete with traditional insurance firms. Investments in corporate and government debt are common for insurance company reserves. It may be difficult to find instruments in the digital asset ecosystem that have the same level of risk and potential return, however. BAC notes that Ethereum staking may be the next best choice.
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Source: https://thenewscrypto.com/bank-of-america-suggest-wider-eth-adoption-after-merge/