Dion Seymour comments on the Ethereum ‘Merge’ in UKTN
Crypto Tax & Accounting Technical Director, Dion Seymour, comments on the environmental and tax implications of the Ethereum ‘Merge’, in UKTN.
Dion’s comments were published in UKTN, 16 September 2022, and can be found here.
“The merge has been long in development going back to 2016. The Ethereum Mainnet will now use a different consensus method than Bitcoin called Proof of Stake (PoS) rather than Proof of Work (PoW). The main outcome is that Ether will no longer need miners with their expensive and energy-hungry computers in the same way that Bitcoin does.
“The environment, quite rightly, is the main headline. The energy usage of Bitcoin exceeds that of many countries, and the merge could be an important step to lessening the carbon footprint of Bitcoin. It is important to note that this is a more finely balanced topic than it may first appear, but it cannot be ignored that PoS uses significantly less energy than PoW. Only time will tell if this will convince policy makers and other stakeholders that all cryptoassets are not created equally.