Odaily Planet Daily reported that the Bank of Italy simulated an extreme scenario where the price of Ether drops to zero to demonstrate how market risks of Ethereum’s native token can translate into infrastructure and financial stability risks. In a new research paper titled “What Happens if Ethereum’s Price Drops to Zero? How Cryptocurrency Market Risks Evolve into Infrastructure Risks,” economist Claudia Biancotti discussed how extreme shocks to Ethereum’s price could impact the cryptocurrency market. She believes that some validators might rationally exit to slow down block production and weaken Ethereum’s ability to resist certain attacks and ensure timely final settlement of transactions. (Cointelegraph)
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