The Ethereum Merge

Ethereum is currently the second biggest Cryptocurrency on the market.

It is also one of the oldest Crypto online, so the technology is outdated.

The transaction fees can be extremely high depending on the network usage. I believe many people in Crypto think the Merge will reduce the Transaction fees and increase the speed of Ethereum.

No, The Merge will not Reduce transaction fees and will not increase the network’s speed!

Ethereum will change from Proof of Work to Proof of Stake.

PoS will reduce Energy consumption massively as there are no Miners needed anymore.

The most important thing for me is the burning mechanism and the changed Ethereum issuance after the update.

Ethereum issuance numbers

• Pre Merge Mining rewards roughly 13,000 ETH per day.
• After the Merge, the Staking rewards will be around 1,600 ETH daily.
• After The Merge, only the 1,600 ETH per day will remain, dropping the total new Ethereum issuance by about 90%
• The burn: If the average gas price is at least 16 gwei, around 1,600 ETH will be burned every day, effectively bringing the net Ethereum inflation to zero or less post-merge.

Check this twee for a comparison:

My view on the Ethereum Merge:

Short-term: Bullish as there will be Hype for the next couple of weeks, but I don’t expect too much price reaction as the overall economic situation is still horrible.

Mid-term: Bearish. If the Merge is successful, people will start crying because the Gas fees are still high, and I see this as a massive sell the news event in general. Also, there is a case when the Merge fails that would be very bad.

Long-term: Bullish as fewer Coins will come into circulation after the Merge. Maybe it will be deflationary, so the price per Coin will increase in the long term!

The Merge will change the Ethereum Network drastically.

It is challenging to say what will happen in the short and mid-term.

I believe in the long-term sight, and it will be a perfect future for me.

I recommend everyone to go to the official site https://ethereum.org/en/ and spend some time reading about Ethereum.

Everything is not financial advice, and please build your own opinion.