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This weekend, the co-founder of Ethereum VitalikButerin discussed ETHW during a Q&A session at the ETH-Seoul conference.
Ethereum founder VitalikButerin has downplayed the impact of Proof of Work (PoW) forks on the leading smart contract platform. Chainlink, meanwhile, has confirmed it will not support any such forks. Bitcoin pioneered the PoW consensus that was adopted by Ethereum. PoW is energy-intensive, requiring increasingly powerful computers to validate transactions to earn blockchain rewards. Some lawmakers in several regions are even talking about banning PoW blockchains.
This weekend, the co-founder of Ethereum VitalikButerin discussed ETHW during a Q&A session at the ETH-Seoul conference. Buterin downplayed the possibility of a fork of this kind seeing long-term acceptance. “I’m not expecting it to have substantial, long-term adoption,” Buterin stressed.
The Ethereum developer and co-founder also talked about Ethereum Classic (ETC) and Buterin complimented the ETC community. “I think Ethereum Classic already has a superior community and a superior product for people kind of with those pro-proof-of-work values and preferences,” Buterin stated. When Buterin was asked about the ETHW proposal, he explained that those involved with its creation are just a “couple of outsiders that basically have exchanges, and mostly just want to make a quick buck.” Buterin added.
The Long-Awaited Ethereum Merge
The Ethereum Merge, a long-awaited upgrade that will complete Ethereum’s transition from a proof-of-work (PoW) to a proof-of-stake system, is set to take place in September. In addition, The Merge will transform Ethereum’s monetary policy, making the network more environmentally sustainable and reducing ETH’s supply. Experts believe that after The Merge, Ethereum will have lower inflation than Bitcoin. Especially with fee burns, Ethereum will be deflationary while Bitcoin will always be inflationary. For Ethereum Classic, this merge provides a key catalyst, at least in terms of interest. Often looked at as Ethereum’s under-loved and under-respected sibling, Ethereum Classic is a fork of the Ethereum blockchain that came about as a result of an internal dispute among developers within the Ethereum team. Ethereum classic will remain proof-of-work, and as such, is now being viewed as a haven of sorts for Ethereum miners looking to pivot.
While Bitcoin will retain its function as digital gold, the researchers feel that Ethereum will still have “a larger adoption space” as the base layer of the decentralized finance (Defi) economy. The Merge won’t reduce Ethereum’s high transaction fees, which is still the main issue preventing Ethereum from scaling and actually outperforming Bitcoin.
Ethereum’s Triple-Halving Event to Promote Instant Price Surge
As per expert predictions, the launch of the Merge upgrade will trigger a triple-halving event for the crypto. They believe that since BTC has mostly reacted positively to halving, it is also likely that Ethereum value will also surge instantly, given the two are quite closely related. Now, let’s dive in deep to understand the ‘triple-halving event’ and the reason behind its importance to raise the value of Ethereum.
When the Ethereum network turns to the PoS consensus mechanism after the Merge upgrade is launched, the ETH supply will decline by approximately 80% to 90% through a process called ‘burning’ and generating ‘deflationary pressure’ on the network, which is equal to halving the Bitcoin system three times, this is the ‘triple-halving’ for Ethereum. The crypto’s EIP-1599 protocol, also known as the Ethereum London fork, accompanied by the PoS consensus algorithm will drastically reduce the issuance of ETH. After this development, the demand for Ethereum is expected to dramatically increase in the upcoming months.
So, when should you buy Ethereum?
Based on expert perspectives, Ethereum 2.0 is supposed to establish a stronghold for the crypto in the Defi and Web 3.0 industry, leaving little room for Bitcoin to reign as the largest cryptocurrency in the world. There are plenty of assumptions revolving around the market that depict the Merge upgrade will fail to appease investors, but its current price rally proves quite otherwise. According to Hayes, ETH is currently providing massive investment opportunities for buyers, hence, now will be a good time for investors to buy and hold the token to generate massive amounts of profits in the future.