The Implications of the Ethereum Merge

Today the long-awaited merger of Ethereum has finally taken place, or the consensus transformation from Proof of Work to Proof of Stake, this will undoubtedly mean a before and after for the entire Ethereum ecosystem, and without a doubt, it will also affect to the rest of the crypto market.

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The most important implications

For now, the co-founder of Ethereum (Vitalik Butterin) is extremely happy that this long-awaited merger has become a reality, and for its part, the Ethereum Foundation has assured that the merger will have significant energy repercussions, in the sense that now the network of Ethereum will be more efficient in terms of energy consumption. As we well know, during mining, the Proof of Work system (which is the one currently owned by Bitcoin and to this day Ethereum) the verification process is heavier, and the energy consumption is very high; especially because the more the network itself becomes larger and the greater the number of transactions per second that must be processed, the greater the energetical demands per se.

But without a doubt, this change in consensus will allow the Ethereum ecosystem to improve in many more ways than could be appreciated at first glance. At the moment, what is in plain view is that this advance will have repercussions on improvements in scaling and processing of transactions, which, in addition to being more environmentally friendly, will make the network more efficient, faster, less expensive. , and with greater processing capacity.

All of this will really play, in my opinion, a major role in the growth of Ethereum as an ecosystem, currency and project. In fact, I think that thanks to all this Bitcoin can have Ethereum fighting for the first place as the most important cryptocurrency in the world in a few years.

But... Back to environmental

Well, regarding cryptocurrencies and their consensus mechanisms being environmentally friendly, it will be something fundamental in the future, and this will undoubtedly have long-term repercussions not only in the aforementioned scaling; but also in the fact that a cryptocurrency and ecosystem be accepted and grow more and more.

To be clearer, I think that in a few years, all cryptocurrencies that do not have environmentally friendly consensus processes will have to evolve towards such a condition, or will tend to disappear, either due to government regulations on the matter; or by the rejection of the same people (users) who will be more aware and demanding in that sense.

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Will the price of Ethereum go up?

Another question that everyone is asking about Ethereum right now is… Will it go up in price?

In my view, undoubtedly in the long term (at the investment level) the price of Ethereum will rise a lot in the future; In fact, I think that in about 3 or 4 years we will see the current prices of Ethereum as very laughable, because by then they will be much higher. Of course, it is just my opinion about it, there is no kind of security about it because as we well know, the crypto market is something very complex; affected by too many factors to be able to predict something with a 100% degree of certainty; that is to say, that is something impossible.

This is why I am not saying all of this as an investment recommendation for anyone, furthermore, as I always say, anything you do in the markets is your responsibility, what you do with your money in the markets ( everything you decide to buy or sell) is solely your responsibility.

Now, in the area of ​​trading, I think that Ethereum can go up significantly in price in the coming days and weeks due to speculation and novelty, but in the long term, I think that the variation or growth that it will have in price will be even more important in the long run than in the short run.

So, for all that the Ethereum Merge entails... Good for Ethereum!

What do you think about the topic discussed? Please comment.

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_{Gif created by @piensocrates}