September 18, 2022
- Thursday saw the successful transition for the Ethereum network from Proof-of-Work to Proof-of-Stake.
- Ethereum’s price has fallen 13% (at writing) since The Merge, proving that this event was a “buy the rumor, sell the news” sort.
- SEC’s Gary Gensler says PoS cryptocurrencies may be viewed as Securities, perhaps adding to Ethereum’s price fall in the Ethereum post-merge phase.
Institutional adoption of ETH is more likely with the Proof-of-Stake mechanism because the new coin will be ESG (environmental, social, governance) compliant.
Ethereum post-merge will see a reduction in gas fees and an increase in the network’s speed (probably early 2024). This will mark the end of the “platform wars,” so that any L1 coin that hasn’t achieved a critical mass of d’apps (decentralized programs running on their platform) will go the way of Blockbuster or the Microsoft cell phone. That’s the long term investing implication.
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