So now that we know that the merge is most likely going to start on September 13, I just wanted to write down the possibilities that I think could happen.
- What everyone thinks, the price goes up which most likely is not going to happen since we are still in a bear market and this event can't just conjure a bull market, or can it?
- The price is going to drop and not just a little bit making this another firesale, woohoo! You know the phrase: buy the rumour, sell the news.
- Ethereum price stays around the same point but gets more people attracted by adoption, which most likely will be investors who appreciate the 99.95% reduction in energy consumption.
- Nothing happens, people get disappointed as this has been announced for years and the price drops and we start all over again!
What do you think will happen? I think 3 or 4.
For those of you who want to know what exactly the Ethereum Merge is, I'll explain:
This Ethereum upgrade or "Merge," as it's being referred to, will change how new crypto transactions take place on the blockchain.
Currently the Ethereum blockchain, like the Bitcoin blockchain, runs on a proof-of-work model, which involves nodes - computers that are part of a large network - competing with one another to solve complicated math problems. The successful ones are then able to mine the next block of a transaction and create new coins.
The upgrade will transition Ethereum to the proof-of-stake model, which is a more energy-efficient and environmentally-friendly system. It entails nodes being selected via an algorithm that has a preference for nodes that hold more of a network's currency.
In other words, their "stake" in the network is rewarded over the computer power that's rewarded in the proof-of-work system.
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