Crypto Currency

[doulos]

You think so? What do you think this means for the future of ETH?

It's a massive thing for Ethereum and has been in the works for years. The technical aspect of it is pretty impressive so it felt like a party late last night.

In the grand scheme of things it is just another step in everything that needs to happen long term, but it moved Etheruem from Proof of Work (mining) to Proof of Stake (staking). It cut the energy usage by 99+%, which was critical in today's world. To put it into context, it was estimated that it actually reduced worldwide energy usage by 0.2% since Ethereum mining used up so much energy.

It also cut token issuance drastically and under even moderate usage of the blockchain will make Ethereum deflationary, rather than inflationary, due to the way it is now setup.

Ultimately it's just one of many things that is going to happen, but it's one of the largest crypto/blockchain events to happen in years.

[Canucks_fan18]

It's a massive thing for Ethereum and has been in the works for years. The technical aspect of it is pretty impressive so it felt like a party late last night.

In the grand scheme of things it is just another step in everything that needs to happen long term, but it moved Etheruem from Proof of Work (mining) to Proof of Stake (staking). It cut the energy usage by 99+%, which was critical in today's world. To put it into context, it was estimated that it actually reduced worldwide energy usage by 0.2% since Ethereum mining used up so much energy.

It also cut token issuance drastically and under even moderate usage of the blockchain will make Ethereum deflationary, rather than inflationary, due to the way it is now setup.

Ultimately it's just one of many things that is going to happen, but it's one of the largest crypto/blockchain events to happen in years.

Thanks for the explanation. I currently hold Bitcoin, Cardano and Eth pretty well exclusively.

[Invictus]

It's a massive thing for Ethereum and has been in the works for years. The technical aspect of it is pretty impressive so it felt like a party late last night.

In the grand scheme of things it is just another step in everything that needs to happen long term, but it moved Etheruem from Proof of Work (mining) to Proof of Stake (staking). It cut the energy usage by 99+%, which was critical in today's world. To put it into context, it was estimated that it actually reduced worldwide energy usage by 0.2% since Ethereum mining used up so much energy.

It also cut token issuance drastically and under even moderate usage of the blockchain will make Ethereum deflationary, rather than inflationary, due to the way it is now setup.

Ultimately it's just one of many things that is going to happen, but it's one of the largest crypto/blockchain events to happen in years.

It also means I can finally buy graphic cards! and not at outrageous prices!

[chuckcouples]

It's a massive thing for Ethereum and has been in the works for years. The technical aspect of it is pretty impressive so it felt like a party late last night.

In the grand scheme of things it is just another step in everything that needs to happen long term, but it moved Etheruem from Proof of Work (mining) to Proof of Stake (staking). It cut the energy usage by 99+%, which was critical in today's world. To put it into context, it was estimated that it actually reduced worldwide energy usage by 0.2% since Ethereum mining used up so much energy.

It also cut token issuance drastically and under even moderate usage of the blockchain will make Ethereum deflationary, rather than inflationary, due to the way it is now setup.

Ultimately it's just one of many things that is going to happen, but it's one of the largest crypto/blockchain events to happen in years.

Should this large and beneficial event not create an increase in its demand and therefore its value? Why did the opposite happen? Why is it down 20% in the past week if this merger is such a good thing? I don't understand any of this.

[Invictus]

Should this large and beneficial event not create an increase in its demand and therefore its value? Why did the opposite happen? Why is it down 20% in the past week if this merger is such a good thing? I don't understand any of this.

I think that's due to markets betting against it.

[Canucks_fan18]

The whole market is down. What I like about crypto is it follows the market but is much more volatile. So when the market is down, it's down lots but when it recovers it has the chance to outperform other rebounding equities. I honestly don't buy into the whole utility crap. Just don't want to invest in one's that turn our to be scams.

[Atomic Wedgy]

Even if at the end of the day we get single sign on, and ZK tech and that's it, I will consider it a huge improvement in some areas.

Yes, ETH doesnt have to solve all of their own problems. The ZK crowd will ease pressure on the scalability front. Just the energy savings alone is a great benefit. Im keen on ETH. Its right at the ATH of the last cycle. Interesting to see if it holds. Its a bargain right now but at 1k usd, its a massive opportunity. My plan is just to invest what I can each month until things change.

[doulos]

Should this large and beneficial event not create an increase in its demand and therefore its value? Why did the opposite happen? Why is it down 20% in the past week if this merger is such a good thing? I don't understand any of this.

If you're asking me to try and explain or guess price action in markets then you won't get an answer from me. All of my retirement money is in boring ETF index funds for that exact reason.

The merge is unequivocally a fantastic thing for Ethereum, regardless of what is happening to the price of the token a week after it happened.

[blayze]

The stock market reaction to the merge has been pretty negative.

Any particular reason? Did they botch the merger / transformation or whatever the event was? They've been hyping this up for the past year.

[blayze]

This explains it

https://gizmodo.com/ethereum-bitcoin...ity-1849551695

[doulos]

This explains it

https://gizmodo.com/ethereum-bitcoin...ity-1849551695

Gizmodo is trash when it comes to reporting on this space. You should probably try and find better reporting on this topic if you're genuinely interested.

Now, Gensler's comments are quite interesting, and I have been following along recently since I can't wait to see what sort of regulatory framework is coming down the road with all of this stuff, but it's far less clear than Gizmodo would want people to think, and the idea that the price of Ethereum is currently falling due to these comments is, frankly, pretty weak. I could see a very small number of people selling off based on some of these news reports, but it's much more likely a combination of a number of things. Specifically on this issue, it does seem likely that protocols/services that provide a secondary liquid token in exchange for staking Ethereum (so something like Lido) could be considered a security, but even that is speculative at the moment. There is a surprising amount of nuance on these topics, and a rag like Gizmodo can't be bothered to try and wade through those nuances, so it's best not to look to them for serious discussion.

- The broad macro environment is terrible and every time reports come out on the state of the economy, whether that's rate increases, CPI etc, the market freaks out. You can see this due to the fact that it's not just Ethereum that is going down. The broader stock market, other crypto etc are doing the same. Ethereum (and other crypto) tend to be more volatile in general, as has been mentioned in this thread multiple times.

- Miners are selling off the remainder of their Ethereum. It can be hard to know to what degree this is still happening, or to what degree it even DID happen, but it's likely some of the sell pressure if from miners who have supply left and are getting out of the space and moving on.

- Buy the rumour, sell the news! It would seem reasonable that there are a certain number of people selling off Ethereum based on shorter term plays. Based on the price action it's unlikely they did very well, but then most traders don't ever do very well with trying to play markets like that, but it never seems to stop them (or me when I was having fun trading garbage coins as well - it's a casino basically).

I assume there are other reasons why as well, but the merge was always a massive upgrade in a long term roadmap and the short term price, while interesting as a talking point, is kind of just noise when weighed against the rest of it.

[chuckcouples]

I assume there are other reasons why as well, but the merge was always a massive upgrade in a long term roadmap and the short term price, while interesting as a talking point, is kind of just noise when weighed against the rest of it.

While I understand the merger as being important, I am not sold on it being a good thing. Sure, it reduces the energy usage for ETH but those GPUs are just going to used to mine something else so that's not really helpful. The other negative to this, from my understanding, is that ETH goes from something where anyone with a GPU could be involved it its "regulation" to something where about 2/3rd of the "regulation" is being done by 2 or 3 companies. How is that a good thing for a currency that is supposed to be solution to government regulated currencies.

(regulation is probably not the right word but I can't think of the actual word I am looking for)

[doulos]

While I understand the merger as being important, I am not sold on it being a good thing. Sure, it reduces the energy usage for ETH but those GPUs are just going to used to mine something else so that's not really helpful. The other negative to this, from my understanding, is that ETH goes from something where anyone with a GPU could be involved it its "regulation" to something where about 2/3rd of the "regulation" is being done by 2 or 3 companies. How is that a good thing for a currency that is supposed to be solution to government regulated currencies.

(regulation is probably not the right word but I can't think of the actual word I am looking for)

Assuming I am understanding your points correctly, then these are pretty common misconceptions.

On the topic of miners switching to another cryptocurrency to mine you are correct that they are free to do so. That doesn't make it a bad thing that the second largest proof of work energy user no longer uses that energy though. The reason these miners were mining Ethereum was because it was profitable to do so considering the cost of energy/GPUs. Will it still be profitable to do so with another cryptocurrency that has nowhere near the value of Ethereum? I would be very surprised if that were the case. You can check out the mining subreddit to see that many people are simply quitting and moving on. However even if all of them went elsewhere to mine, it is still a fact that Ethereum uses massively elss energy which is a very good thing just on its own.

As for your second point I am not 100% what you are referring to but it sounds like the idea that much of the staking is done with centralized services like Coinbase, or Kraken. This is true to a degree and there has been more of a push to get people to self stake. This way it decentralizes the entire system. It should be noted that once unlocks are enabled (6 to 12 months estimate but who knows) those who are currently staking on those centralized services will finally be able to move them off to self stake, or even to use a service like Rocketpool, while not as fully decentralized as self staking, is much more so than Coinbase or even Lido.

Also, the concept that Proof of Work is more decentralized, while great in theory, is basically a lie in practice. One only needs to see the concentration in the Bitcoin mining pools to see that centralization is a massive issue there as well. Worse than with Proof of Stake.

Hopefully that clears up your misconceptions but happy to clarify further if needed.

[Atomic Wedgy]

Well, stepped in and bought some more BTC. The price is pretty inviting. These sad/boring times are actually the good times.

[PinchingD]

I wonder how rich MrGuru is. He started this thread and started buying bitcoin around 3k lol