Ethereum Roundup: Bill Miller Warns of Financial Inequality after PoS Transition, Soros Fund CEO Picks Ether over Bitcoin
Here’s a recap of the major events and developments around the Ethereum ecosystem:
Soros Fund Management CEO picks Ethereum over Bitcoin
CEO of Soros Fund Management, Dawn Fitzpatrick, has backed the premier altcoin ecosystem to see more traction than Bitcoin. Fitzpatrick cited the environmental concerns that the latter will continue facing into the future as Ethereum migrates to a more energy-efficient proof of stake consensus mechanism.
Speaking during a recent Bloomberg interview published on May 31, the George Soros fund manager noted that Ethereum also has an advantage as it’s likely to see more use case applications in the future.
Crypto is already mainstream
Explaining her case further, Fitzpatrick added that not just Ethereum but cryptocurrencies are here to stay. This evolution into this stage of tech has seen an entry into the mainstream, citing the fact that Fidelity Investments recently announced that users could allocate a portion of their 401 (k) accounts/ retirement benefits to crypto. This, she noted, is a sign of growing crypto adoption.
Notably, the Soros’ fund executive’s bullishness on Ethereum over Bitcoin hasn’t turned into practice, at least not according to the publicly available information. The George Soros fund has in the past revealed exploits into crypto but has only ever said it held Bitcoin and not any other crypto coins.
An inflated risk of global recession
The money manager also believes that the markets are overpricing recession risks, claiming that Americans are in “extraordinarily” good health and that the economy has some shock absorbers to cope with the recently hostile environment. She explained that the imminent risk of recession isn’t entirely a façade, but only the timing of it is up to question.
She also projected that a recession is in the cards but could be further out than people anticipate it to come.
Financial commentator Peter Schiff predicts an Ethereum breakdown below $1000
SchiffGold Investment Fund chair Peter Schiff has predicted that Ethereum could see a descent to May 2021 lows, pointing to a combination of two highly bearish patterns that suggest the same.
Schiff, who doubles as the CEO of Euro Pacific Capital, shared an Ethereum chart in which he noted an ominous double top with a head and shoulder on the right side that’s been seen with Bitcoin in a previously highlighted chart. He theorized that this adds to the fact that Ethereum has violated higher support and could tumble towards the lower yellow line.
Referencing that, Schiff predicts that the decline would reach the $1,000 mark, which he called the deepest point of expected decline. The ominous combination that the commentator was referencing is one he’s recently observed on Bitcoin’s intensely bearish patterns, foreseeing a long way down.
Bill Miller cautions of the potential increase of financial inequality with Ethereum’s move to PoS
Renowned crypto investor Bill Miller has faulted one change with Ethereum’s move to a proof of stake consensus. Speaking in a recent interview with The Investor’s Podcast, Miller noted that Ethereum’s migration would leave Bitcoin at an advantage over Ethereum as it won’t be plagued by financial inequality expected of the latter.
The financial inequality Miller is concerned about has to do with the centralization expected of a PoS chain, as decision-making would be stacked on those with the highest staking power. So, the more Ethereum locked on the Beacon Chain, the higher the influence an ETH holder would have on network decisions, as is not the case for Bitcoin/PoW.
He thus opined that Bitcoin’s lack of such issues makes it truly democratic. Miller’s Bitcoin optimism has been seen in the past, revealing back in January that he had half allocated his net worth to Bitcoin.
Miller also defined another of Bitcoin’s advantages as its utility in preventing economic breakdowns. He cited instances including countries such as Argentina, Ukraine, Lebanon, Afghanistan, and Nigeria, whose political situations have resulted in financial catastrophe. Bitcoin has served as an insurance policy against it.
To learn more about Ethereum visit our Investing in Ethereum guide.