Kyle McDonald, an independent researcher, believes that the Bitcoin network may be “regulated away,” causing the price of bitcoin to collapse.
McDonald recommends selling bitcoin now. The reason is that after the Ethereum blockchain switches to a dramatically less energy-intensive method of validating transactions, known as “proof-of-stake,” investors and regulators may realize that the energy-intensive method that both Bitcoin and Ethereum use now, called “proof-of-work,” was never really necessary.
Speaking on CoinDesk TV’s “First Mover” program on Friday, McDonald cited the “climate crisis” and Bitcoin’s massive use of energy. He said that because “Bitcoin doesn’t have the coordination like Ethereum to leave proof-of-work,” it could be “the first to be regulated away.”
Crypto’s significant energy consumption has been one of the most damaging aspects of cryptocurrencies, and McDonald said bitcoin will never see “$69,000 again.” The cryptocurrency traded close to that mark last November.