Now that Ethereum has completed the merge, we have seen a lot of price fluctuation. What will it take to see it get back to November 2021 highs?
Is ETH being replaced by ETH2?
NO, Ethereum isn’t being replaced by ETH2. They have merged. Some are calling it ‘docking,’ joining Ethereum minenet to ETH 2. The merge has been significant because it has ended the proof-of-work concept altogether. The first stage of the merge, codenamed Bellatrix, happened on September, 6th, 2022. Now that both stages are complete, the Ethereum 2.0 network is consuming as much as 99.5% less energy than it did previously, using Proof of Work.
Are Ethereum gas fees cheaper now?
The simple answer is no. The Ethereum Foundation has said, “The Merge is a change of consensus mechanism, not an expansion of network capacity, and will not result in lower gas fees”. While making Ethereum more energy efficient (upto 99% more energy efficient, says the foundation) it will not make it cheaper.
What are other benefits do we see from The Ethereum Merge?
Aside from the energy efficiency of the network, The Merge allows more users to participate in Ethereum’s network, earning rewards on staked ETH.
Is now a good time to buy Ethereum?
Up until this point there has been a lot of speculation on where Ethereum was headed. Some people were starting to believe that Ethereum wouldn’t recover from the dip earlier this year. Then, the merge happened, and a short-term rally took place. Within a few days, there was another dump. This raised many questions in the community as to why this happened and what’s really going on inside Ethereum. With all the uncertainty, it’s no wonder that some long-term investors are starting to cash out their profits in fear of another deep correction.
Knowing when to invest in anything is tricky. The volatility of cryptocurrency makes it even more so. The Business Resource Directory’ advice has been and always will be that you should only invest in crypto the money you are willing to lose. I like to think of it as a Vegas-style gamble. The benefit over Vegas is that over the long term, you will probably do better with crypto than cards or a sports book.
What’s next for Ethereum?
The next big innovation planned for Ethereum is “Sharding,” which should speed up transactions as well as lower fees.
Bucky has been into AI, online marketing, and website performance since its creation in 2020. Based in Los Angeles with their cat, Bucky finds joy in the idea of nature, being outdoors, and engaging with friends.