TechFlow news, on January 12, according to Cointelegraph, the Bank of Italy simulated an extreme scenario in which the price of ether drops to zero, demonstrating how market risks associated with Ethereum's native token could translate into infrastructure and financial stability risks. In a new research paper titled "What If Ethereum’s Price Drops to Zero? How Cryptocurrency Market Risks Evolve into Infrastructure Risks," Bank economist Claudia Biancotti explored how an extreme shock to Ethereum's price would impact the cryptocurrency market. She argued that a portion of validators might rationally exit, slowing down block production and weakening Ethereum's ability to resist certain attacks and ensure timely transaction finality.
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