In 4 days time the Ropsten test merge will happen, turning the Ropsten testnet from POW to Proof of stake. On the 30th june, the difficulty bomb will go off, gradually increasing the difficulty for miners to mine blocks. The data can be found here:
And in an as yet unspecified date in august, the real main net merge will happen. So why am I so bullish about the merge? Its largely Eth moving instantly from 3.3% inflation to -0.7% inflation. But it’s also these.
99% reduction in energy cost per Tx. 90% issuance reduction. 12500 eth a day to 1250. Miner sell pressure drops from 14,000 eth a day to 0. More eth locked in the staking contract for 6 months after the merge . Deflationary asset. More eth burned than produced if gwei >20gwei.
Number 3 is I think the most important. While it wont drop to exactly 0 on the first night, removing $30 million of sell pressure per day will have a massive effect. The market would need to refind this pressure just to stop the price going up. (Its guaranteed profit). It wont find this sell pressure.
There won’t be a ‘massive selloff’ on merge night. All eth remains locked into the contract until the next update. After that, there is a queued release.
I believe that both Bitcoin and Ethereum are stores of value, but Ethereum is currently also the worlds largest and most secure crypto network. It is the foundation of web3.
As a final note, it took 19 months to get 12.6 million into the deposit contract. In the last 2 months alone, 2.6 million of that amount was deposited.
As a final final note, I’d like to thank Do Kwon for causing the luna crash and allowing us to buy Eth this cheap, this close to the merge. And also removing luna from the market and allowing Ethereum more room to grow in MC. You’re a bastard, make no mistake; but you’re a magnificent one.