1
Coin Home / Re: [ANN] Ethereum: Welcome to the Beginning
« on: August 19, 2021, 11:55:52 AM »
Did you catch our update on the Ethereum update EIP 1559 and the upcoming change to Proof of stake? As the market continues to react to this big change in crypto, let's take a look today at the hottest parameter everyone is talking about, the one that is most likely to influence the price of ETH. Halving.
A Bitcoin halving event is when the payout for mining a bitcoin transaction is cut in half. When this happens, the rate at which new coins enter circulation is halved, cutting in half the inflation rate of Bitcoin.
Many speculators point to such halving events as leading indicators of subsequent bull runs. Why is this important to understand? Because Ethereum might not only see such a halving event soon, it might see two more after that in quick succession!
This sort of triple halving has never occurred with Bitcoin. In just one week since EIP 1559, over $100M of ETH was burned. Over 70% of transaction fees will continually be burned after EIP 1559. Next, Proof of stake.
Currently, about $39M is paid to miners for running ETH networks and security. This ETH is immediately converted to cash because miners have operating costs.
When the proof of work is converted to proof of stake, ETH can move from a mine and dump economy to a stake and restake economy, reducing selling pressure theoretically by $39M every single day! Not yet time to sell your house and take out that loan for a lamborghini, but watch this space keenly!
A Bitcoin halving event is when the payout for mining a bitcoin transaction is cut in half. When this happens, the rate at which new coins enter circulation is halved, cutting in half the inflation rate of Bitcoin.
Many speculators point to such halving events as leading indicators of subsequent bull runs. Why is this important to understand? Because Ethereum might not only see such a halving event soon, it might see two more after that in quick succession!
This sort of triple halving has never occurred with Bitcoin. In just one week since EIP 1559, over $100M of ETH was burned. Over 70% of transaction fees will continually be burned after EIP 1559. Next, Proof of stake.
Currently, about $39M is paid to miners for running ETH networks and security. This ETH is immediately converted to cash because miners have operating costs.
When the proof of work is converted to proof of stake, ETH can move from a mine and dump economy to a stake and restake economy, reducing selling pressure theoretically by $39M every single day! Not yet time to sell your house and take out that loan for a lamborghini, but watch this space keenly!