A lot of rumours have been going around with regards to Ethereum and the news is mainly bullish. The second most popular cryptocurrency has seen a tremendous increase in use cases, conviction, and applications within the blockchain industry. And yet, many seem to switch their ETH to USD in fear of a change in the consensus system. With Ethereum eventually migrating to PoS, there will no longer be an opportunity to mine it.
Or will there?
In this article we look at Ethereum’s journey over the past year, the plans for ETH 2.0, and how you can continue mining Ethereum after the migration. Let’s get started.
Ethereum’s most bullish cycle yet?
Many institutional investors keep an eye on Ethereum in this market cycle, primarily due to its impressive growth in subsectors like DeFi, gaming, and others. The introduction of dApps has certainly made the network the foundation of an eventual Metaverse.
But many claim Ethereum was too expensive to use.
A typical transaction sets you back $70-$100 in network fees, especially when trying to mint NFTs. Due to this reason, many other blockchains are now rising in popularity hoping to become the NFT native options.
Over two months ago, Ethereum finally had a long awaiting upgrade that essentially added a fee-burning mechanism that has the potential of making the cryptocurrency deflationary. Dubbed as EIP-1559, the upgrade has had a massive impact on the project’s potential, and many expect to see a (temporary) flippening, making ETH the number one cryptocurrency.
The next few months are crucial
While the NFT craze continues, and GameFi becomes the new trend, Ethereum is finally ready to make its migration from PoW (proof of work) to PoS (proof of stake). By doing this, the network will not only become deflationary, but users will also be rewarded with passive income generated by staking their tokens.
According to Three Arrows Capital founder Su Zhu, anything bellow $15.000 per coin is fud, while the estimate for the coin’s peak lies somewhere between $25.000 and $40.000.
Of course, not everyone agrees. Raoul Pal, another large Ethereum proponent, believes that Ethereum will follow Bitcoin’s 2017 chart direction in this cycle. He believes that network effect paired with industry applications will be enough to propel it to a peak similar to what Bitcoin saw back in 2017.
All in all, the next few months are crucial and will determine whether it really is a great opportunity to hold onto your ETH. But what happens then? All those investors with miners – what will they do?
A fork could be on the way
Large ETH holder Tetranode recently discussed the potential of an Ethereum fork on an UpOnly episode, shortly after mentioning that his long-term prediction for ETH is $100.000.
According to him, miners will collectively decide to stay on the old Ethereum chain, creating a fork, and thus rewarding all existing Ethereum users with new, forked tokens.
You can watch the full episode of Tetranode’s predictions and strategy, by checking the Youtube video below:
All participants of the discussion agreed that the mineable version of Ethereum would eventually be worth less, as the majority of the community would choose to use and transact with the PoS version. Yet, this option still offers the opportunity to those with mining equipment to continue using it for passive income.
But this option also works great for the grand total of investors who simply wait for the value of their tokens to appreciate. With Ethereum’s migration, not only will the cryptocurrency become deflationary, but it will also reward users who hold onto it with new coins that they can potentially sell or hold onto. We have yet to see if this scenario plays out, but many agree that it is unavoidable.
Ethereum looking forward
Whether you are a miner or simply an investor with long-term outlook, it’s hard not to be bullish on Ethereum right now. The cryptocurrency which dropped massively in value during the latest bear market has now come back stronger than ever, proving to be the underlying power of our much-awaited Metaverse.
It is for this reason that we believe its best to zoom out, focus less on your direct mining profits, and try to get a better understanding of where Ethereum is going. At its current pace, we could see Ethereum reaching a higher market cap than Bitcoin, due to its sharp increase in usage and adoption from individuals and builders alike.
Founder Dinis Guarda
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