full image - Repost: Algofam thoughts on Ethereum Fork? (from Reddit.com, Algofam thoughts on Ethereum Fork?)
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Curious what everyone's thoughts are on the Ethereum PoS fork supposedly happening September 15th. The third test-net fork was successful yesterday, so looks likely it will go off without a hitch from a technical standpoint.My question is, what will it do to the perceived value of Ethereum, and how will it effect the TVL?I think from a psychological and economical perspective the PoW model is a major driver of the perceived value of both Ethereum and Bitcoin. People want to own expensive things, and if it takes a lot of time, energy, and technology to mine a coin, people will be willing to purchase those coins for a higher amount because of the work that went into creating them.From my perspective, this somewhat clumsy switch to PoS could be a disastrous move for the value of Ethereum. I'm not saying I think they shouldn't do it. I'm all for a greener blockchain. But so much of the TVL of Ethereum in particular is tied up in the OpenSea-ish "art & collectable" NFT market. And if it's one thing the art & collectable market likes, it's rarity and proof of work. Why do you think Algo NFT's haven't (and in my opinion will never) taken off in value? It's because they are so cheap and easy to mint.Ever try opening an OpenSea acount, and minting or selling NFT's. The transaction and account validation fees alone could cost hundreds of dollars. But that's the point. The cost gate-keeping of helped to drive up the value and TVL of etheruem.If the currency that this market is based on suddenly becomes that much easier to produce, will the TVL drop significatly?My guess is yes. I'm short on Ethereum bigtime here.Meanwhile, I'm long on Algorand for the exact opposite reason. The utility, speed, and affordability of the network are exactly what have defined it from inception. Years ahead of Etheruem in that regard.I think Etheruem is probably here to stay, but in the short term (2-3 years) I see a potential total collapse of the Ethereum market.
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