- As The Merge approaches, the chief investment officer of Valkyrie Investments, the crypto asset management firm’s Bitcoin (BTC) flight to safe He says he turns to assets (a financial market phenomenon that occurs when investors sell investments they perceive as high-risk and buy safer investments).
In a new interview with Bloomberg Technology, Valkyrie CIO Steve McClurg said that Ethereum (ETH) will launch in September. Proof of Stake He said that as he prepares to move to the consensus mechanism, the crypto-asset manager is exiting all positions in the second-largest digital currency.
McClurg has secured the funds of Valkyrie, which has nearly $1 billion in assets under his management, in addition to Bitcoin. Avalanche (AVAX) and Zilliqa (ZIL) He said he transferred it to other smart contract blockchains such as
“Currently, Bitcoin is a commodity for most of our funds. flight to safe Some of the more established Proof of Stake methods are also excellent options. For example Avalanche and Zilliqa…
So, until we see this consolidation in some of the safer and larger crypto protocols sometime in mid-September, we’re totally walking away from anything that currently has a lot of exposure to ETH. ”
McClurg says that Ethereum’s upgrade to a proof-of-stake consensus mechanism could come with downsides that could pose huge risks for investors.
“I don’t think the transition to proof-of-stake is a perfect thing for Ethereum in the short term. But it may work in the long run.
However, the Ethereum network is actually Proof of Work as more secure. What has truly made Bitcoin the most secure network for a long time is the existence of proof-of-work, essentially where you have computers or verifiers all over the world that decentralize transactions. When you switch to proof-of-stake, these transactions will basically only be in the hands of a few people.”
The CIO also claims that the platform needs to prove itself on the security of Ethereum after the Merger so that investors holding large amounts of funds on the network can feel safe.
“However, Ethereum [nasıl] security will have to see how this will turn out/work. Because if you really have a million dollars plus NFTs, you rely on the Ethereum network to store them, and this platform is changing right now, I think that chain might not be a great place to be right now.”
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.