Ethereum Is Ready to PUMP | Get ready for something big

Ethereum Is Ready to PUMP | Get ready for something big

ever to happen just 3 months away. What event? Well, find out in about 10 minutes….because
it’s time for Chico Crypto!! so does this historical event have to do

with Bitcoin!? Well looking at Bitcoin’s performance vs Ethereum…you would think if so,
Bitcoin would be performing much better than its #2.

Ethereum as of yesterday was up 2.8
percent over 24 hours compared with Bitcoin’s -.7 percent. And over 7 days, Ethereum was up
17 percent compared with Bitcoin’s 8.7 percent.

Yes, this historical event
isn’t about Bitcoin…it’s about Ethereum. The Merge is coming
and with everything going to plan, it looks like it will happen in just 3
months. Right on schedule for June 2022.

The Ethereum Merge Kiln testnet went live last
week and went exactly to plan. From this Coindesk article on the success of Kiln, we can see
Ethereum core devs tweeting about the successes and Cointelegraph says “The network’s
transition event from PoW to PoS will dock the Beacon Chain with the Ethereum mainnet.

The Merge could come as soon as this June” So why is this such a big deal? Well, first we
need to understand what is happening with the Merge. This is when Ethereum is fully making
the transition to proof of stake and the proof of work chain, which has been running since
July of 2015 will be completely shut off.

Now if you didn’t know…Ethereum has had a thing
called the beacon chain running in parallel to the proof of work chain since December of 2020. The
beacon chain is the proof of stake chain, although it has been extremely limited in what it does.

The beacon chain has been solely for consensus of blocks and paying out rewards to the proof of
stake validators for confirming those blocks. The proof of work chain has been also doing consensus
of blocks and paying out rewards to miners for

Confirming those blocks, but it also has been
doing the execution of the smart contracts. So you can think of the beacon chain
as the consensus layer and the proof of work chain as the execution layer.

With
the Merge in June, these two merge together. Proof of Work consensus is turned off, but
the execution is kept on and merged into the proof of stake chain…creating a single chain…the
executable beacon chain where all Ethereum clients will work together.

ETH1 execution
clients and the ETH2 consensus clients. So what does this mean for Ethereum?

Well, when the Merge takes place it can be considered to Ethereum, what a halving is
to Bitcoin…but this is halving on Steroids. The Bitcoin halving is just a 50 percent
reduction in emissions to the proof of work miners that takes place every 4 years hardcoded
into the Bitcoin network.

Block rewards get cut in half and the scarcity of Bitcoin gets
ever more apparent when this takes place. The Merge on the other hand is not hardcoded into
the eth protocol. It’s an update that has been

Worked on for years and changed much more than
the issuance and emissions of rewards. It changes the structure of the ETH market by switching from
miners to validators, it enables future upgrades to the protocol such as data shards, it becomes
an asset which generates a yield and much more… So a bitcoin halving reduces emissions of rewards
by 50 percent.

What is the merge going to do for the issuance of rewards? In June, Ethereum issuance
is going to be reduced not by 50 percent, but by a whopping 90 percent!! 90% is the
equivalent of three Bitcoin halvings which is why this is sometimes termed
the triple halving for Ethereum.

Now if you didn’t know, Bitcoin in its
history has only had 3 halving events..where each halving event has been shown to
push the price of the asset to new, unfathomable levels. From 0 to after the 1st
halving, above $1000. From $1000 to after the 2nd halving, near 20 thousand, from 20k to
after the 3rd halving, so far too above 69k. Obviously, the halvings have had a strong
effect on the Bitcoin price each time…so

What effect will a triple halving
have on Ethereum, in just 1 GO!! Well, let’s discuss this in more detail.
A 90% drop in issued ETH means the block reward goes from the current 12,000
Ether to just 1,280 Ether per day. That means going from a 2 Ether reward per
block to an estimated 0.2 ether.

That’s a massive reduction which means all things equal
yearly inflation will go down from 4.3% to 0.43%. But things are not all equal.
Ethereum has a wildcard.

From his chart of yearly inflation rates, we
can see the 90-day average inflation of Ethereum sunk below that 4.3 percent level all the way
back in September of last year, it has since dipped below Bitcoin’s near 2 percent inflation
and as of late, has been below 1 percent already.

Why is ETH already below 1 percent inflation?
Well, Ethereum has implemented their burn upgrade where a portion of the transaction fees is
burned with each block. From watchtheburn.com we can see since the burn upgrade released
in A

Leave a Reply

Your email address will not be published.