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Bank of Italy simulates Ethereum zero risk: Some validators may exit rationally
Summary: In a move to simulate extreme scenarios, the Bank of Italy has analyzed the risk of Ethereum's native token price dropping to zero, showcasing how market risks can transform into infrastructure and financial stability risks. In a new research paper titled 'What if Ethereum price drops to zero? How cryptocurrency market risks evolve into infrastructure ...
In a move to simulate extreme scenarios, the Bank of Italy has analyzed the risk of Ethereum's native token price dropping to zero, showcasing how market risks can transform into infrastructure and financial stability risks. In a new research paper titled 'What if Ethereum price drops to zero? How cryptocurrency market risks evolve into infrastructure risks,' the bank's economist Claudia Biancotti discusses how extreme impacts on Ethereum price could affect the cryptocurrency market. She believes that some validators may rationally exit to slow down block production speed, weakening Ethereum's ability to defend against certain attacks and ensure timely final settlement of transactions.
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