Update Needed 📉

Update Needed

Cryptocurrencies have been looking for something that could spark a rally, after staying in the depths of the market for what’s been a couple of months now. That is, every crypto except Ethereum, which has seen its value almost double from lows in the last month. Ethereum has been riding the news regarding an expected software update that is meant to change the crypto landscape in a good way, compared to other software updates that are meant to fix hacks.

This is being referred to as the “Merge” in the crypto world, and it involves a major overhaul of the Ethereum system. According to founder Vitalik Buterin, the update should take place around September 15th, and this has been in the works for multiple years now. A big stress has been efficiency at Ethereum HQ, and according to the Ethereum Foundation, the update will reduce electricity consumption by more than 99 percent, which is mind-boggling and should do wonders for the climate. The merge that’s taking place is the combining of the current proof-of-work Ethereum blockchain with the proof-of-stake platform that they plan to use for the foreseeable future. This contains the benefits listed above, along with increased security and speed, but the execution and possible effects have some skepticism. There are billions of dollars worth of Ether in movement, along with thousands of applications built on the blockchain. The update would change things instantly and possibly lead to a lot of losses, but people believe that the developers at Ethereum have thoroughly vetted this out to prevent as many problems as possible. Mining companies are also set to struggle just because the system is changing, with proof-of-stake needing validators instead. According to experts, mining companies and even individuals who run Ether mining programs will lose a good chunk of revenue and most would have to become validators, which might be a tough process.

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

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