In this video, I discuss how Ethereum moving to Proof of Stake basically guarantees that it will become a government-captured coin, thus betraying the whole ethos of being a cryptocurrency.
After the Merge, Ethereum will be controlled by large, centralized validators who are regulated and thus under the control of OFAC and the US government. We have recently seen with Tornado Cash, how ready these validators are to bend the knee to government pressure.
If Coinbase refuses to censor transactions, it will lose its government license.
If Coinbase censors a transaction, Vitalik has vowed to slash their stake, thus hurting all retail investors who use Coinbase as their staking service.
The high capital requirements (32 ETH) and technical complexity needed to run a validator ensure that small holders of ETH will either not stake (and thus get diluted) or will stake with larger entities, thus leading to more and more centralization of staking power.
This is why Bitcoin uses Proof of Work. PoW is much less prone to government control and capture.
Not investment advice! Consult a financial advisor.
I am not being paid or otherwise compensated by any company or cryptocurrency project that I mention in my videos.
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#ethereum #merge #proofofstake
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