Bitcoin Forum

Will Casper and Ethereum 2.0 increase the market value of ETH? 
Even take place of Bitcoin?🧐
My fresh and in-deed analysis for the current state of blockchain technology and cryptocurrency.

"If the developing progress happened like this, a boom in application on Ethereum would be possible, and Ethereum would become the world computer and financial settlement layer. The price of ETH depends only on how much the user needs to pay for miners. Due to the introduction of ETH2.0 sharding, the overall TPS would increase significantly, and the transaction fee for a single transaction would be a big decline, and the price of ETH may continue to fall.
If Ethereum develops in this direction, it may introduce a problem that the value of the mortgaged ETH may be less than the value of the DAPP running on the shard chain. At this time, miners have enough reasons to acts in a malicious manner and steal the value of DAPP by launching a double-spend attack or other ways."

"Of course, not the whole miners would definitely do evil. We also have many other ways to punish the evildoers. For example, the exchange freezes or refuses to accept the assets of the evildoers. Since the current status of the blockchain industry mixed centralized and decentralized. But the essence of this logic is that if the POS consensus and Slash models are adopted, the security boundary of the value of DAPP applications that can be carried on Ethereum is the market value of ETH itself."

"This may be a hidden problem for restricting the continued expansion of the DeFi economy on Ethereum. As for the security reasons, the market value of the overall DAPP cannot exceed the market value of ETH."


Written in a hurry, welcome to read the full article.
https://link.medium.com/FvfdBmJ7y5

TPS is not a big problem since it can be solved anytime but the problem is how to bring the hype for ethereum again and the main aim for ethereum 2.0 to decrease or even remove the inflation that has already become the main problem for ethereum since a long time ago.
I didn't expect big from this update but just bring more valuation to the ethereum will be enough.

"Even take place of bitcoin" , well no. In order for something like that to happen we are talking about around 7.4 or so increase in ethereum price, which comes down to around 1180 dollars or so for ethereum. Don't get me wrong I think 2.0 will make a lot of changes in ethereum and when it moves from proof of work to proof of stake there will be a lot more reasons to hold ethereum instead of selling it, right now there are tons of miners all around the world who make money from selling their ethereums, even if they don't sell all of it, they have to sell the part that costs them (the electricity mainly) but with proof of stake there won't be any of that and the more you stake the more you will stake later so there will be a reason to hold.

But even with all of that I doubt price would be above 1000 dollar threshold, maybe 500 dollar level at best.

I will not think about replacing bitcoin because it will never happen. But increasing the market value, this is more likely. Despite of the recent changes of the market, Ethereum has been performing well and it has reached to $170. The ETHs market was so good lately and you can think of it that it will show a better performance that the recent one but incomparable to the bull run performance.

 Well all coins had a bad day today in the past 24 hours, but it looks like things are going to be brighter in the future with people not really selling coins all that cheap anymore and halving is on the corner. What people are missing out that bitcoin halving does affect altcoins as well, and as ethereum is the biggest of the altcoins (or even labeled king of altcoins precisely) we can say that bitcoin halving will increase ethereum price as well.

 So right now we have both bitcoin halving which will increase bitcoin price, which in return if btc/eth price staying the same that would mean eth price in dollar would increase as well, plus on top of that there will be ethereum 2.0 which will in return increase just ethereum as well, so that is double increase in ethereum price in the next 12 months, plus this pandemic will eventually end and prices will go back to normal, so thats triple of what it is today. I think 1200 dollar could be too much, but 500-600 level is quite achievable if you ask me.

I will not get into discussion of whether Ethereum will grow more in market value or cap of bitcoin or not, i think we should not compare because bitcoin has its own positives and negatives and btc slso has a huge halving event this year which is expected to increase its value multifold. Personally after Eth 2.0 i expect the same and i think both the price of Eth and its market cap will increase tremendously.

I'm more concerned will the transition to the PoS finally solve the scaling issues than what will it to for the price of Ethereum. Of course, I would love if Ethereum could make 10x but let us focus on developing rather than on the price. Price increase will come if the devs manage to make a smooth transition to Ethereum 2.0

Thats next to impossible when you compare their market cap and volume. I love ethereum and its one of the best altcoin out there or yet the best. But with such popularity and tech wise? Bitcoin beats them to the ground. POS is a new system and lots of project are into it. But PoW for me still the best mechanism or consensus that works fine. Though, in terms of consumption it really outrun it, but thats not the reason why it is good but the ability to extend scalability on their best. Anyway, if ethereum transfer and migration can be seen successfully we can watch what would be the result but since its not yet happening better to observe first.

PoW is safer and there's also an advantage for PoS and that's making the rich people richer because they can simply invest, buy and let their money work for them. That's the algorithm that lies in PoS and that's why many are waiting for it to happen in Ethereum. But as for bitcoin, PoW makes the network more secure and better. Bitcoin and Ethereum are incomparable and they have their own advantages be it as an investment or preferred coin that's why I've said that I'm not thinking about the replacement because it's been said many times.

Fair assessment.
But making the rich people richer, is it a good thing for everyone?
How the rich make the poor accept POS no matter willing or unwilling?
After all, consensus must require the most recognition.

Asking if it's good for everyone, you can already define that it's favorable to the richer and not for everyone but that's the concept and consensus that may help Ethereum to thrive further.
Regardless of your financial stand, you have no choice but to accept the changes because it's the devs decision.