The most anticipated upgrade, the Ethereum Merge, will change Ethereum’s transition from a proof-of-work (PoW) to a proof-of-stake system. It is planned to take place in September this year. Additionally, this Merge will convert the monetary policy of Ethereum to make the network more environmentally sustainable and decrease ETH’s supply.
According to the Experts, Ethereum might have reductive inflation than Bitcoin after The Merge. Mainly for the burning fees, Ethereum will be deflationary. Whereas Bitcoin will always be inflationary.
The Merge’s Mechanism :
This upcoming merge will act as a key catalyst for Ethereum Classic. Ethereum-classic has always been under-loved and under-respected compared to Ethereum. For the internal intolerance among developers within the Ethereum products, Ethereum Classic came about as a result of it. It is a fork of the Ethereum blockchain. Though, that Ethereum classic will remain as the previous proof-of-work.
This upcoming Merge is going to be a vast and remarkable update. It includes a large number of protocols and decentralized applications that are based on Ethereum. The merger is going to make the blockchain more efficient and also scalable and sustainable.
‘Surge’ is another different program of the Ethereum blockchain. The Beacon Merge is following the ‘Surge’. The September merge will allow 100,000 transactions in a second. Also, it will reduce 1 second block time. Which will cause 12 seconds from 13 seconds. It will decrease the transferring fees through block timings.
Noteworthy, Bitcoin is following the PoW mechanism currently. Though, It is a complicated process along with riskier transactions. Also, it causes security issues. But this traditional mechanism is effective, but not as efficient as PoS.
The upcoming PoS mechanism will be less energy-consuming. It will need less equipment. Alongside, the PoS mechanism is easier to stake ETH. The staking members only should have 32 ETH.
Strategy No. 1 :
Traders or users can buy Ether (ETH) in the spot market. They can simply hold it easily in their exchange wallet or which platform or wallet supports forked tokens. Then they have to wait for the expected PoW token.
If we look back in 2017, Bitcoin was forked to Bitcoin Cash. At that time BTC holders used to receive an equal amount of BCH. At that time, one token was traded for $1,650. As the bull market took over, the BTC price reached higher and BCH also rallied high.
Strategy No. 2 :
In this strategy, investors can invest the total amount of assets in small bites within time, instead of investing all at once. Here the aim is to grab the advantage of the falling market without giving the capital in any risky condition.
Notably, DCA is created to extinguish any negative effect on any investment that arose from short-term market volatility.
If the rate of any asset falls when the dollar-cost averaging falls, then the user has to be ready to gain a profit when the price rises back.
Strategy No. 3 :
During the decision regarding how and what to invest in the market, Liquidity is important there. Currently, Bitcoin is on top according to liquidity. Defining liquidity means how easily an asset can be converted into cash without changing its value or balancing the value.
Now, liquidity is important in the crypto market as it can decide whether traders can enter or exit a trade looking at their expected value. As the crypto market is forwarding fast, traders can go ahead or be out of the market quickly. The supply and demand should be there for the cryptocurrency. It helps the market enthusiasts to buy at the best price along with securing a profit when they intend to sell them.