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Ethereum just got the biggest upgrade ever. Here is why the price is going to skyrocket. ► Where I Buy Bitcoin: ► My Stock Portfolio Stock Tracker: ► Get 2 FREE stocks valued up to $1850 (when you deposit $100): ► MY DISCORD: ► Open A Roth IRA: ► Follow Me On Instagram: ► How I Protect My Bitcoin: My PO Box: Andrei Jikh 4132 S. Rainbow Blvd # 270 Las Vegas, NV 89103 ETHEREUM’S UPGRADE Is called the London Hard Fork - it includes 5 new EIPs, EIP stands for Ethereum Improvement Proposals that bridges Ethereum 1.0 to Ethereum 2.0 which is set to go live next year in 2022. This is an upgrade that changes the way that we pay fees for using Ethereum and here is how. WHAT IS IT? Using ETH is very expensive. In May of this year it could cost you as much as $69 to spend Ethereum which doesn’t even make sense to spend it at that point. This is because of gas fees. Think of it like a transactional cost of using Ethereum. Those transaction fees get grouped together and sent to a block of a limited size. Same like Bitcoin. This upgrade changes the fee structure. WHY THE UPGRADE? Unlike Bitcoin’s 1mb block size, Ethereum has a block target of roughly 15 million gas units, but this new upgrade allows the block to expand 2x depending on the network’s demands. This upgrade changes the fee structure so that gas fees are burned instead of paid to miners. Instead miners will have to rely on block reward and transactional tips. If Ethereum was yellow cab, this upgrade is like Uber. WILL ETHEREUM BECOME DEFLATIONARY? A lot of people want Ethereum to become DEFLATIONARY, they want a limited supply so that it could be more valuable. Let’s run some quick numbers to see if this upgrade will make it deflationary. Lets assume 13 second block time - that’s 4.6 blocks per minute, with a block reward of 2 coins per block giving us 9.2 coins per minute. This works out to 13,248 new coins created every single day or 4.8 million a year. If you compare that against the current supply of 117 million coins, dividing 4.8 million by 117 million - you get 4.1% - that’s the true inflation rate of Ethereum. 4.1% per year. This new upgrade has burned 4,500 in the first 24 hours. Doing that same math, 9000 times 365 divided by current supply of 117 million gives us a new inflation rate of 2.8% per year instead of 4.1%. So technically no it doesn’t make Ethereum a deflationary currency. Deflationary would mean we would either have a fixed supply of coins or burning more coins than we’re creating. WILL ETHEREUM GO UP IN VALUE? Yes. The change from 4.1% annual inflation to 2.8% is a change of about 32%. This means we’re reducing the rate of supply of Ethereum by about a third. As of last month, Ethereum already went up in value from around $2,400 at the end of July to about 3,168 so that’s about an increase of 32%. The price went up almost in lock step with the reduction. The market is starting to see Ethereum as more valuable by roughly a third which makes perfect sense. WHAT IS THE MERGE? The biggest upgrade is going to be something called “The Merge” which is when all of Ethereum will be changed to proof of stake so in the future once Ethereum 2.0 goes live sometime next year, we will have more deflation because of what’s called the cliffening. WHAT IS THE CLIFFENING? This is kind of like Bitcoin’s halving which happens every 4 years where the block reward gets cut in half. Next year the cliffening will reduce Ethereums rate of production by 90%. That’s an equivalent of roughly 3 Bitcoin halvings that will take place at once. So if the market reacts like it did to the London hard fork, we could see ETH increase a further 90% in anticipation of the merge. THE GREENEST CRYPTO Once Ethereum moves over to proof of stake, it will reduce it’s energy output by 99% making it one of the greenest cryptos on Earth. This means people like Elon Musk and hedge funds will most likely want to get a piece of it. Exciting times ahead! MY DISCLOSURE: I have roughly 100 Ethereum across all my accounts. I purchased at around $200 a piece with an initial investment of $25,000 that is now worth around $300,000. I have a vested interest in ETH going up in value. *None of this is meant to be construed as investment advice, it’s for entertainment purposes only. Links above include affiliate commission or referrals. I’m part of an affiliate network and I receive compensation from partnering websites. The video is accurate as of the posting date but may not be accurate in the future.
