The former BitMEX boss believes that :
- the decentralized finance sector is a suitable alternative to the current financial infrastructure.
- Ethereum’s price could reach $5,000 after the merger.This would only happen if the network’s
- transition to a proof of stake is to be successful and the U.S. Fed no longer raises rates aggressively.
Mr. Hayes added that:
- Ethereum should still recover the $3,500 level without the Fed’s pivot.
- Ethereum will likely become more scarce after the merger, despite an increase in demand.
- The merger will also lead to a deflation of Ethereum.
Prior to 2020, Hayes was an avid critic of Ethereum. In 2018, he accurately predicted the digital asset’s double-digit price drop. However, he became a supporter of Ethereum after 2020.
Hayes also predicts that:
- if Ethereum’s transition to a proof-of-stake network is not successful and the Fed’s aggressive rate hikes do not abate, Ethereum will return to the “dark ages.”
- Ethereum miners are a group of Ethereum network players that can ruin the chances of a successful transition to the network PoS
- once Ethereum completes its transition to PoS, the miners’ equipment and facilities will be virtually worthless and their revenues will drop to zero.
Their only option is to find a value chain to mine that can offer them a similar marginal income as they currently enjoy on Ethereum’s proof of work (PoW). However, Hayes said he doubts this is possible given that there is no other PoW blockchain with a similar market cap to Ethereum.