What effect will the Atrium Network update have on the bitcoin stock model?

Some experts say that completing the upgrade of Atrium to the second version and changing the network mechanism to a model that is not available could make Atrium a more attractive digital currency for bitcoin investors. However, an important point that has received less attention is that with the transfer of Atrium to the stock-proof model, this digital currency may be banned or restricted in some countries. But why such a change in the mechanism of this Chinese blockchain network could have such consequences?

According to Kosala Hemachandra, founder and CEO of the popular MyEtherWallet portfolio, one of the main benefits of changing Atrium’s network mechanism to prove shares to investors in this digital currency is that they can do without them. Bet on it without an initial price and make more profit.

He said:

Many bitcoin owners enter the Atrium market after changing the network mechanism so that they can share and profit from their tokens.

The transfer of the Atrium network to the equity-proof consensus mechanism is taking place at a time when more institutional investors are entering the digital currency industry and most are investing only in bitcoin.

Also read: gluing or sock; Complete training + introduction of digital currency

In addition, pressure is mounting on groups who say the Bitcoin consensus-proofing mechanism is energy-intensive and non-environmentally friendly. As a result, once the Atrium network is upgraded, pro-environmental financial institutions are likely to take a greater interest in Atrium.

The exact time to upgrade Atrium to the inventory check model has not yet been determined, but comments from network developers suggest that this is likely to happen in the second half of 2022 or even early 2023.

As you probably know, the implementation of this update has been delayed many times so far. Until recently, atrium mergers were expected to take place between May and June.

Although the timing of the update is unclear, founder Ether Walt is confident that Atrium will become more popular with profitable investors as the mechanism changes.

He said:

Atrium is definitely becoming more attractive and profitable; Because this will be the largest Chinese bloc, which, in addition to offering solutions for equity participation, also has an attractive return. Of course, bitcoin will always play an important role in China’s blockchain ecosystem.

Ben Caselin, head of digital currency exchange research and strategist at AAX, says that once the Atrium network merges, investors who care about the environmental, social and governance issues of the digital currency may think Atrium is more better than a little. Kevin.

However, he added that once institutional investors understand the benefits of bitcoin and the consensus model of proving work, their thinking and preferences can easily change.

According to Kazlin, an important point to consider when transferring the atrium is the legislator’s opinion on it. In the United States, the Securities and Exchange Commission has previously said there is little interest in digital currency-based financial products with specific interest rates. This had a negative effect on the performance of the credit platforms BlockFi and Celsius, which paid interest to their creditors. For example, the Celsius Protocol was forced to stop paying interest to its new US consumers due to pressure from that legal entity.

Read also: What is Atrium 2.0? ; Everything you need to know

Uncertainty about Atrium’s legal status in the future may scare some investors. This is especially true for institutional investors, who have a lot of capital for this digital currency market.

Therefore, technically bitcoin will continue to be useful as the most decentralized digital currency available, whether Atrium updates are successful or not.

He explained:

Continuing to accumulate bitcoins over the years may be the best way forward. This is because, despite the beliefs or hopes of most market participants, bitcoin and the digital currency market in general often waver against their expectations.

He added:

Atrium prices could reach $ 10,000 or more by the end of this year. However, if the price of bitcoin does not rise to $ 120,000, Atrium will not achieve its goal. It can be said that the price trend of Bitcoin and Atrium is still interdependent and this dependence has not yet been eliminated.

The publication What is the impact of updating the Atrium Network to the bitcoin stock proof model? appeared first for currency.

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