Cryptocurrencies on the road to sustainability: Ethereum paving the way for Bitcoin

Amid the current climate emergency and global energy crisis, regulators have started to consider their op-tions to limit the power demand of cryptocurrency networks. One specific way crypto-asset communities can limit their environmental impact is by avoiding or replacing the energy-intensive proof-of-work (PoW) mining mechanism. Ethereum, the second largest crypto-asset by market capitalization, had its PoW re-placed with an alternative known as proof-of-stake during an event called The Merge on September 15, 2022. In this perspective, the likely range of electricity saved due to this change is estimated, while the lim-itations in assessing these figures are highlighted. Lastly, the challenges and opportunities in replicating The Merge on other cryptocurrencies such as Bitcoin are discussed.