The Ethereum Merge is one of the most anticipated events in the cryptocurrency space this year. As such, cryptocurrency companies are keeping an eye out for any setbacks as the newly upgraded Ethereum network comes to life.
In an interview with Cointelegraph, Alexander Hoptner, Cryptocurrency exchange CEO BitMEX, shared how his platform is preparing for The Merge, discussed the potential for institutional adoption after the transition to proof of stake (PoS) and gave his opinion on Bitcoin (BTC) and Ether (ETH).
According to Höptner, in addition to checking all the boxes of the company’s standard preparations before big events, the most important thing is to pay close attention to what might happen and make sure your services work. He explained:
“You have to be, let’s say, awake and see what happens. There is a possibility that there will be a lot of volatility. And so you have to make sure that your services are up and running. […] We don’t expect any major disruption outside of volatility.”
When asked about possible proof-of-work (PoW) forks, the BitMEX executive commented that a hard fork will be good as long as it is supported by a strong community. Höptner highlighted that one of the main risks of hard forks is not having enough support from miners.
Another topic addressed during the interview is the issue of institutional adoption after the upgrade. With major players increasing their services aimed at institutional investors, the CEO of BitMEX believes that a PoS-based Ethereum is more attractive to organizations, as it addresses the environmental narrative that institutions are primarily concerned with. He said that:
“I’m absolutely sure that this will further drive institutional adoption and also mass market adoption, because also the current generation generally pays a lot of attention to all efficiency, to environmental development.”
The executive also noted that large financial players are already making inroads into the crypto space, primarily investing in BTC and ETH. He said that many institutions are already proposing 1-2% crypto in their investment portfolios, and Höptner believes this will continue to increase.
Contrary to popular belief that the market is currently in a bear market, the BitMEX CEO shared his team’s belief that what the industry is currently witnessing is not a bear market, but rather a slight correction that is often seen in traditional finance. Said:
“The market was very overheated beforehand. Money was too cheap, and this is now a slight correction, but we are very bullish on Bitcoin, very bullish on ETH, especially because of proof-of-stake.”
Overall, Höptner believes that the Ethereum Merge is a positive development in the industry, reiterating that his team is bullish on the value of ETH. The CEO also highlighted that Ethereum has a very strong community, and that ETH has the potential to outperform BTC. “I think it can definitely, let’s say, overtake Bitcoin in relative growth,” he said.
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