‘Green ETH’ narrative to drive investment and adoption, says pundits

According to co-founders and fund managers, the shedding of Ethereum’s energy-intensive proof of work (PoW system) is expected to lead to Ether (ETH), “flowing into institutional world.”

According to the Ethereum Foundation, Ethereum transitioned to a Proof-of-Stake (PoS), consensus mechanism on September 15. This is expected to reduce energy consumption by 99.95%.

This upgrade has effectively eliminated the need for Ethereum to rely on miners or energy-guzzling mining equipment to validate transactions and create new blocks. Validators now “stake” their ETH.

“The merger will reduce the worldwide electricity consumption by 0.2%.” – @drakefjustin
— vitalik.eth (@VitalikButerin) September 15, 2022

Charlie Karaboga, the CEO and co-founder at Block Earner, an Australian fintech company, stated that the transition to PoS would “drive future money to be more web-based” in a statement to Cointelegraph.

He stated that Ethereum would be “the settlement layer that all will accept and trust — especially since the spotlight shines brighter than ever at the question of sustainability in cryptomining.”

Markus Thielen, chief investment officer of IDEG, stated that he has been in talks with central banks and sovereign wealth funds to help them build their digital assets portfolios. However, direct investment was often “voted down because of energy concerns.”

He said that this is less of an issue now that Ethereum has moved to PoS.

“While there has been strong demand, the missing link was an underlying zero emissions, financial infrastructure. This last pillar is solved with Ethereum moving to PoS.

Apollo Capital’s Henrik Andersson told Cointelegraph ESG was a major factor in institutional investment decisions over the past few years.

Andersson stated that he believes that ETH’s 99.95% energy consumption reduction would significantly improve its ESG score. This would make it “more attractive for institutional investors” in the long-term.

Jason Yanowitz, Blockworks’ co-founder, told his 92,900 Twitter followers that “Green ETH”, which is a combination of crypto mining and PoW, will be the “best narrative” crypto has ever seen.

Related: How blockchain technology can be used to save the planet

Yanowitz pointed out that the “Bitcoin’s bad for the environment” narrative had been “so influential” up until now and has “probably had the greatest negative effect on the asset’s performance.”

Yanowitz stated that ESG mandates are now mandatory for most large institutions.

“Fidelity and BlackRock, Goldman, etc. Regardless of whether they like it or not, they now need to consider the environmental impact of their portfolios.”

Yanowitz said that Ethereum has now forgotten about this, and that the Merge will make Ethereum greener. This makes Ethereum attractive to large corporations that have ESG mandates.

This will be the most narrative crypto and ETH we have ever seen. It will flow into institutional markets, where investors will purchase ETH to fulfill their ESG mandate.

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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