• Bitcoin
  • Blockchain
  • Crypto
  • Metaverse
  • AltCoins
  • Business
  • Investment
  • Upcoming
What's Hot

Buy Love, Sell Fear

October 3, 2023

Elon Musk Calls Fiat Currency A Scam

October 3, 2023

US Government Frames Bitcoin Privacy As “Criminal”

October 2, 2023
Facebook Twitter Instagram
  • Bitcoin

    Buy Love, Sell Fear

    October 3, 2023

    Elon Musk Calls Fiat Currency A Scam

    October 3, 2023

    US Government Frames Bitcoin Privacy As “Criminal”

    October 2, 2023

    Bitcoin Is A Possession, Not Property

    October 2, 2023

    A Most Ridiculous World : The Politicization Of Energy

    October 2, 2023
  • Blockchain

    BlockJoy raises $12M to help cut operating costs for businesses running blockchain nodes • TechCrunch

    February 2, 2023

    Blockchain Futurist Conference — Canada’s biggest crypto conference returns for fifth year

    February 2, 2023

    WEMADE and Metagravity Sign Strategic Alliance MOU to Collaborate on Blockchain Games for the Metaverse

    February 2, 2023

    Will Polkadot’s [DOT] new parachain fix the blockchain?

    February 1, 2023

    BNB Chain Unveils 3rd Blockchain in BNB Ecosystem, Tether ‘Never Borrowed from Celsius’, Ripple Sold $226M Worth of XRP in Q4

    February 1, 2023
  • Crypto

    Crypto Donations Now Need An Appraisal

    February 2, 2023

    Bitcoin Shrugs Off Fed Rate Hike to Hit Six-Month High

    February 2, 2023

    Stock and Share Market News, Economy and Finance News, Sensex, Nifty, Global Market, NSE, BSE Live IPO News

    February 2, 2023

    Yates County cryptocurrency miner completes debt restructuring deal

    February 1, 2023

    How ‘King of Instagram’ Dan Bilzerian ‘made millions’ from cryptocurrency after bizarre poker deal

    February 1, 2023
  • Metaverse

    Facebook’s Metaverse Division Lost Nearly $14 Billion Dollars Last Year

    February 2, 2023

    Samsung Hints Metaverse Ambitions At Product Launch Event, Eyes Integrating Different Realities Into Premium Smartphones

    February 2, 2023

    Sanlam makes history with SA’s first media launch in the metaverse

    February 2, 2023

    Meta’s plans to expand metaverse are up and running again: Here’ how

    February 2, 2023

    RFOX VALT Launches AI-Enabled Metaverse Apartments for Sale

    February 1, 2023
  • AltCoins

    Altcoins Lead Post-Fed Crypto Rally as Risk Appetite Increases

    February 2, 2023

    CAKE, SHIB And These Alt-Coins Are Trending

    February 2, 2023

    Elon Musk Wants McDonald’s to Accept Crypto Payments. Dogecoin (DOGE), Bitcoin (BTC), and Snowfall Protocol (SNW) Benefit

    February 2, 2023

    Crypto Analysts are Saying These Altcoins Have Huge Potential – Here’s Why

    February 2, 2023

    Are Cryptos Bound to Retrace Amid Recent Pump?

    February 1, 2023
  • Business

    Ray Dalio Warns Money Is in Jeopardy, Favors Inflation-Linked Crypto

    February 2, 2023

    BIT Mining Limited Regains Compliance with NYSE Continued Listing Standards

    February 2, 2023

    Bithumb’s de facto owner arrested over alleged embezzlement

    February 2, 2023

    Crypto Custody Firm Copper Alerted to Security ‘Incident’ Over Christmas

    February 1, 2023

    Cathie Wood’s Ark Invest Says Bitcoin Could Hit $1.5 Million by 2030

    February 1, 2023
  • Investment

    The Investor’s Guide to Crypto Options Trading

    February 2, 2023

    Pune software engineer loses Rs 13 lakh to crypto investment fraud

    February 2, 2023

    Crypto Investment Products’ AUM Surges as Investor Confidence Returns: CryptoCompare Report

    February 2, 2023

    Crypto Investors Can Purchase Bankruptcy Put Options to Protect Funds on Binance, Coinbase, Kraken Crypto Exchanges

    February 1, 2023

    Ethereum price forecast for February, including Morgan Stanley comments By Investing.com

    February 1, 2023
  • Upcoming

    S&P 500 rises to the highest level in five months Thursday as Meta leads a tech comeback

    February 2, 2023

    Looking For Something Different From Nubank and C6 Bank? Try Lanistar! – Sponsored Content

    February 2, 2023

    NYDFS Releases Guidance For BitLicensees And Limited Purpose Trust Companies On Asset Custody In The Wake Of Cryptocurrency Insolvencies – Financial Services

    February 2, 2023

    This Supreme Court Case Will Reverberate Throughout the Compliance and ESG World | NAVEX

    February 2, 2023

    Ethereum (ETH) Could Reclaim $2,000, Trader Says

    February 1, 2023
investorstoday.press
investorstoday.press
Home»Upcoming»What Is the Ethereum Merge? How Will It Affect Crypto Prices?
Upcoming

What Is the Ethereum Merge? How Will It Affect Crypto Prices?

maikdezana@icloud.comBy maikdezana@icloud.comAugust 26, 2022No Comments7 Mins Read
Share
Facebook Twitter LinkedIn Pinterest Email
Ads by Money. We may be compensated if you click this ad.Ad

Enter Your ZIP Code and Start Consolidating Your Debt

The crypto industry is getting excited for a big event known as “the Merge” — which proponents say could boost prices in the long run and significantly change the future of cryptocurrency.

The Merge is an upgrade to the Ethereum blockchain, the technology that fuels the second largest cryptocurrency and other technologies in the crypto ecosystem like non-fungible tokens (NFTs). It’s expected to take place in September.

There’s been a boom in crypto investing in recent years, with the value of the overall market more than doubling at one point last year as people piled their money into bitcoin, ether, dogecoin and other cryptocurrencies. Whether you are super into crypto and following every latest development in the space or you own a bit of crypto via a platform like Coinbase or Venmo, if you’ve heard about the upcoming so-called Merge you may be wondering what this actually means for you.

Here’s everything you need to know about the Ethereum Merge, including what the upgrade means for crypto prices, the environment and more.

What is the Ethereum Merge?

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.

When will the Ethereum Merge happen?

After many delays, the process is expected to begin on Sept 6 with the actual Merge happening around Sept. 15, according to post published Wednesday by the Ethereum Foundation.

Why is the Ethereum Merge happening?

Proponents say that the transition will allow the Ethereum network to reduce its energy consumption by around 99%.

The proof-of-work model, which is what the Bitcoin network uses, requires far more energy than the proof-of-stake model. The negative impact on the environment of crypto transactions has been top of mind for many cryptocurrency critics and advocates alike, and Ethereum’s shift to the less-energy-intensive proof-of-stake is viewed as a significant advance.

It will also set the groundwork for other aspect’s of the network’s roadmap, like making transactions more efficient.

What does the Ethereum Merge mean for you?

If you hold crypto assets, there likely isn’t any action you have to take. But this could offer a more environmentally-friendly option for those interested in crypto, and there could be some impact on crypto prices.

What does the Ethereum Merge mean for your ether holdings?

If you hold ether — the native cryptocurrency of the Ethereum blockchain and the second most popular cryptocurrency after bitcoin — you do not have to do anything, according to the Ethereum Foundation. But watch out for scams. If an application, crypto exchange or crypto wallet sends you instructions or recommendations, be sure to verify the notices are actually coming from those platforms, the Ethereum Foundation wrote in its blog post.

“If you are a user and you just want to send some Eth from one person to another or use a DeFi application, it really doesn’t have any kind of material change for you,” says Chris McCann, a partner at Race Capital.

If you are socially conscious investor who is feeling hesitant about the environmental impact of crypto, this could be good news for you.

“There is a lot at stake for this new event,” says Eliézer Ndinga, director of research at 21Shares, which provides cryptocurrency exchange-traded products. He described the Merge as “a huge step forward, especially for the retail investors more conscious about global warming and climate change” who want to invest in more environmentally-friendly assets.

What does the Ethereum Merge mean for ether’s price?

Crypto prices have been through the wringer this year. After an impressive few years that included record-high prices last November, cryptocurrencies like bitcoin and ether have seen significant drops more recently alongside other financial assets, like stocks. Bitcoin is down around 55% from the beginning of the year, as is ether.

But this Merge could shake up the price of ether, which has been outpacing bitcoin during much of cryptos’ recent recoveries.

“ETH has been outperforming bitcoin largely due to news about the upcoming merge,” Ben Weiss, CEO of cryptocurrency ATM company CoinFlip, tells Money via email. “If it goes smoothly, the merge will be an incredible technical feat.”

Crypto investors are well-acquainted with volatility, and they should be ready for more ups and downs.

“Some price volatility going into a key catalyst of such grave importance is reasonable,” Alex Tapscott, managing director of Ninepoint Partners’ digital asset group, told Money via email.

Fans of crypto — and the Ethereum network specifically — are hoping that the move will help boost ether’s price. A successful merge “should put a strong bid under the price of ETH and help it resume its upward trend,” Tapscott added.

Katie Talati, the director of research at investment firm Arca, told CoinDesk, “This is an event that a lot of people are undercounting, especially based on current price appreciation” of ether. “We’re gonna look back on this in a year from now and [realize] we were at the [market] bottom there.”

There is some perception that this change will unlock more growth potential in Ethereum, says Stéphane Ouellette, CEO and cofounder of FRNT Financial. But the long-term assessment of the value of the move will “likely be judged by the subsequent years of development on the blockchain and the applications and technologies which emerge,” he adds.

In other words, while the Merge is likely a positive thing for Ethereum and its believers overall, investors may have to stick around instead of benefiting from a price jump right away. (This is what financial advisors actually recommend — investing for the long haul, rather than speculating and trying to strike it rich quick.)

The Merge really sets the groundwork for other advancements hoping to be made on the Ethereum network in the future, McCann says. Long term, this could be a “positive catalyst” for ether, he adds.

Ads by Money. We may be compensated if you click this ad.AdAds by Money disclaimer

Join Public and gain the tools and confidence to start trading cryptocurrencies, stocks and other top markets.

Public helps you manage your cryptos with confidence 24/7. Buy and sell your assets commission-free today!

Start Investing in Crypto

Offer valid for U.S. residents 18+ and subject to account approval. There may be other fees associated with trading. See Public.com/disclosures.

What about bitcoin’s price?

While Ethereum is the star of the show when it comes to the Merge, it’s not necessarily the only crypto that could benefit.

“A successful merge will likely boost the price of all crypto assets,” especially ether and other projects associated with it, Tapscott says.

But bitcoin prices, he adds, could also rise as “investors in general gain more confidence in the asset class.”

Ads by Money. We may be compensated if you click this ad.AdAds by Money disclaimer

Enter Your ZIP Code and Start Consolidating Your Debt

More from Money:

What Is Ethereum?

7 Best Crypto Wallets of August 2022

5 Best Crypto Exchanges of August 2022

cryptocurrency news
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
maikdezana@icloud.com
  • Website

Related Posts

S&P 500 rises to the highest level in five months Thursday as Meta leads a tech comeback

February 2, 2023

Crypto Donations Now Need An Appraisal

February 2, 2023

CAKE, SHIB And These Alt-Coins Are Trending

February 2, 2023

Looking For Something Different From Nubank and C6 Bank? Try Lanistar! – Sponsored Content

February 2, 2023
Add A Comment

Leave A Reply Cancel Reply

Top Posts

Subscribe to Updates

Get the latest crypto news

Advertisement
Demo
Top Insights

Buy Love, Sell Fear

October 3, 2023

Elon Musk Calls Fiat Currency A Scam

October 3, 2023

US Government Frames Bitcoin Privacy As “Criminal”

October 2, 2023
Get Informed

Subscribe to Updates

Get the latest creative news from FooBar about art, design and business.

Categories
  • AltCoins (1,399)
  • Bitcoin (2,057)
  • Blockchain (1,384)
  • Business (1,378)
  • Crypto (1,365)
  • Investment (1,383)
  • Metaverse (1,361)
  • Upcoming (1,319)
Facebook Instagram
  • Contact Us
  • privacy policy
  • about us
© 2023 Designed by investorstoday.

Type above and press Enter to search. Press Esc to cancel.