What Will You Do When ETH goes PoS?

almost 2 years ago

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What Will You Do When ETH goes PoS?

Todays big announcement out of crypto is once again Ethereum in a positive light. As of today Ethereum just completed a test run of the merge and it went off with a huge success. This is making the promise of a August 2022 merge and release start to look more promising.

Ethereum has been talking about and saying they would make changes to the system since 2017 and only heavily started to test such as system in 2020. Still to this day however the blockchain still remains on a slow expensive chain.

It's important to note that this change does not make Ethereum any faster. It's also important to note that this change does not make Ethereum fees any less either. Two very critical parts that often kill off crypto rallies. It did so in 2017 and it did so again in 2021.

What it will do however is most likely increase the value and price of Ethereum. With over 50% locked up which is seen in most proof of stake chains it means that the price increase should be double if not more which in itself could spark a rally across the board.

Much like Bitcoin rallies often spark rallies in altcoins Ethereum very well has this capability now as well.

How Much Ethereum Do You Need?

The original proposal of the proof of stake system was going to come down to needing 1,500 minimum to run a node for the Ethereum blockchain. A heavy price tag of about 2.7 million dollars. However it was soon realized that more decentralization had to happen which now brings us to the required amount being 32 ether or roughly $60,000

Still not small sum of money it is doable for many people (at least for now) that's because as the price of Ethereum goes up it will increasingly get more expensive to stake and run a node. That once $60,000 will most likely shoot to $120,000 - $240,000 needed which is substantial.

So the question remains will you be stocking up on Ethereum now to run your own node?

All Those Nay Sayers

Remember that growing voice of dumb people that think that Proof of work is trashing our environment. (which by the way it's not and contributes for much less then the cost of making fiat paper money) or that digital art is a scam and simply I can screenshot it or that NFTs are burning up the world. Well all of those people are going to now have to shut their mouths and have no grounds (even though it was weak grounds before) to complain about such things.

The test that went off today showed how little power is needed in order to now secure the chain and process them.

Trust me I know this first hand and it's why I don't like proof of work systems all that much anymore. With proof of work theirs so much expensive overhead its down right nuts. In order for me to mine a proof of work coin I constantly have to keep upgrading my hardware, trying to improve my power output and reduce costs of power production and keep up with the ever growing competition.

With proof of work I can take a $500 computer and run many nodes at once that run proof of stake. When it's not mining a block it uses 7 watts when it's mining it uses 33 watts! That's it 33 watts in order to produce blocks on a number of chains at once. The amount of energy change about to happen is going to be crazy. So crazy in fact I'm curious if we will see a flash crash on prices of GPUs come Q3 and Q4 of this year.