He talks about how the US government could affect Ethereum, with potential sanctions being one of them. It turns out that the Treasury Department had sanctioned a virtual currency mixer, which has raised speculation about whether they could move against Ethereum.
However, according to Bons, the biggest threat to Ethereum comes from within regarding social slashing and unclear governance. He fears that the Ethereum network could soon be heading for disaster and multiple forks.
Justin Bons says that Ethereum could fall victim to social slashers. With the Merge, Ethereum will switch its consensus mechanism from Proof-of work to Proof of stake.
Justin believes that Ethereum's PoS chain will be censorship resistant. This would be an issue if the community decides to slash their staked Ethereum. He advocates using the slashing option only as a last resort because it could abridge many people's property rights.
The controversial former CEO of BitMEX, Arthur Hayes, once again spoke out in favor of Ethereum and assured that the arrival of The Merge would have positive implications for the digital currency, almost comparable to the effect that a Halving has on the price of Bitcoin.
Hayes's statements came to place in a new publication through his official blog, where the former director of BitMEX made a reflection based on some theories, specifically citing the "reflexibility" of George Soros, which postulates that there is a feedback loop between market prices and the expectations that its participants have for a given situation.
Under the expectations about the arrival of The Merge, Hayes argues that this phenomenon could positively impact the price of Ethereum due to the reflexive relationship between its price and its deflationary properties.
Hayes also noted that this reading could reverse if The Merge doesn't work. Still, given the progress the update has been making on testnets, he dismissed the idea, noting that this has been a notable boost for marketing both the digital currency and its futures.
Let's keep in mind that The Merge will be implemented on the Ethereum mainnet in the middle of next September, so there are high expectations among investors and developers about the positive repercussions of this event.
Both Hayes and other analysts have indicated that this would mean a complete change in the dynamics managed for the Ethereum economy since dispensing with the figure of the miners could significantly shorten the liquidity that reaches the exchanges, at the same time that there would be an increased interest in staking ETH and deriving rewards for escrowed funds.
Ethereum is the network with the largest number of decentralized applications and use cases, being home to a large volume of Defi projects and in the NFT sector.
Following the sudden FTX collapse, the ETH price plunged to the $1077 zone. However, now the Ethereum price appears to normalize and has even broken through the overhead $1,200 resistance.
So far, the freefall of the ETH crypto has ended. Currently, Ethereum is hovering between $1,229 and $1,283 with a market cap of $150B
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