Paolo Ardoino Doubts Ethereum’s Prospects After The Merge

The Merge will not solve Ethereum’s core problems, and the cryptocurrency cannot yet be compared with Bitcoin. This view was expressed to The Block by Paolo Ardoino, the chief technology officer of Bitfinex and Tether.

In his words, Bitcoin is a form of money. Ethereum, in its development, has become stuck in an intermediate position between that status and a platform.

“ETH cannot compete with Bitcoin on the monetary front, because there is no fixed supply, and, in fact, it is still not a world computer, […] too slow to be scalable,” Ardoino says.

Activated on the morning of September 15, The Merge transferred the network of the second-largest cryptocurrency to the Proof-of-Stake consensus algorithm. The large-scale upgrade is designed to reduce the network’s energy consumption by more than 99% and pave the way for other important updates.

“The Merge will not fix the issue of transaction fees or make the network more decentralized. The event has focused enormous attention on Ethereum, but what comes next?”, — Ardoino asked.

He noted that the upgrade does not address the blockchain’s scalability issues and does not touch on layer-2 solutions.

The Merge does not change the situation of an asset that “is a driver of the main themes of the crypto industry, including true decentralisation,” according to the Bitfinex CTO.  

“The thing is that Bitcoin is the only asset with a solid immutable narrative. Ethereum still does not live up to digital gold, because its narrative continues to adjust,” Ardoino stated.

As reported, Glassnode analysts concluded that after The Merge Ethereum will become deflationary and its circulating supply will begin to shrink.

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