I am confused about how the PoS ETH 2.0 rewards impact the economy. If I understand everything I have read correctly so far, ETH 1.0 PoW will continue to run parallel until Phase 2.
So miners will continue to receive the same ETH 1.0 rewards until PoW is deactivated in Phase 2. While at the same time Stakers are receiving ETH 2.0 rewards between phases 0 & 2. Doesn't this mean when Phase 2 hits there is going to be a massive flood of extra ETH in the ecosystem when the two merge together? and potentially a price drop? Or are mining rewards being reduced to compensate for the ETH 2.0 PoS rewards?
While everyone is anticipating Phase 0 to boost the price of ETH I don't know why it would when it is essentially increasing the supply in a time bomb fashion.