In a recent report, FSInsight said that Ethereum's transition to a proof-of-stake (PoS) system will reduce token production and selling pressure from miners, so it may exceed the market cap of Bitcoin in the next 12 months. According to CoinGecko data, at the time of writing, Ethereum has a market value of $ 227 billion and Bitcoin has a market value of $ 459 billion.
In the report, which mentioned that if the merger is completed successfully, “the inflation rate of the supply will decrease” and “the selling pressure of the miners will be reset”, it was stated that the thoughts that the transition to PoS will allow Ethereum to scale better are wrong and that there will be no change in the basic layer of the network.
Sean Farell, Head of Digital Asset Strategy at FSInsight, stated that the main goal of the merger is to reduce energy consumption by 99.9% and allow more users to contribute to the production of blocks.
FSInsight also noted that while investors looking to mitigate risk following the merger could create selling pressure, "flow imbalances from a deflationary supply have the potential to be incredibly constructive for price."
Bitcoin Miner Riot Loses $366.3 Million
Bitcoin mining companies are reporting lower-than-expected revenue in their second-quarter 2022 financial reports due to the cryptocurrency collapse and environmental factors. Bitcoin mining giant Riot posted a net loss of $366.3 million in the second quarter.
Bitcoin miner Riot posted a net loss of $366.3 million for the second quarter of 2022, mainly with an impairment fee of $349.1 and an impairment fee of $99.8 million on Bitcoin reserves. Riot has secured $5.7 million in electricity credits for three months, selling power to the Texas grid over $9.5 million earned in July 2022. The statement made by the company is as follows:
"We consider our ability to sell electricity back to the grid at market-based spot prices, thereby reducing our operating costs, is an integral part of our overall strategy."
Riot mined 1,395 Bitcoin (BTC), down 0.7 percent from the previous quarter. Revenue also fell 8.7 percent to $72.9 million, with $46.2 million from crypto mining and $9.8 million from hosting services. In its statement, the company also stated that it was negatively affected by the decline in Bitcoin prices and increasing variable mining costs, but it increased efficiency by deploying a significant part of the next generation hardware.