While the bear market is continuing to be for many investors horrible, this time is exactly to think about your next moves and stay active! In this article I want to highlight some developments behind the scenes of Ethereum’s Merge plans and some good news regarding crypto money that is coming in.
Ethereum Merge Troubles
It seems like a fairy tale by this point. The long-awaited Merge of the Ethereum blockchain was scheduled for this year’s August. This estimate was done with the premise that everything will go according to plan. For those who don’t know: the merge is very long awaited by big parts of the crypto community as it marks the long-anticipated change from Proof of Work to Proof of Stake.
This is very interesting for investors because the Proof of Stake mechanism is considered by many “experts” as the environmental friendlier method. This is important because many institutional investors would be able to be compliant with their ESG terms and therefore be less attackable. There was also a big hope for the current gas fees to go down but this will not happen with the merge. Furthermore, many people are hoping that Ethereum will become a sound money system which is debatable whether it is good or not.
The merge is called like that because there are currently two block chains running. One current blockchain that is operating with the Proof of Work consensus mechanism and the Beacon Chain that is operating with the Proof of Stake mechanism. The merge is supposed to bring both together. Unfortunately, it was revealed that not everything is going as smoothly. It was announced that the Beacon Chain underwent a temporary block reorganization that often happens due to a bug or malicious activity. In this case it happened because of different versions of software of the validator nodes.
This event alone was enough to put some sell pressure on Ethereum which is why it dropped even more than all the other coins that are deep in the red. It will be interesting to see whether the long awaited and for August scheduled merge will actually happen in August or whether there will be another delay in this project. I am thinking the latter will happen once again.
Crypto Influence & Money
With some bad news out of the way, let’s quickly talk about some amazing news for crypto in general! First things first, it was announced that Andreessen Horowitz (A16Z) allocated a staggering 4.5 billion into a special crypto fund! The reason for that might bring some hope to all the crypto holders as it was said that crypto is about to enter a golden era. I think somebody did their homework there and many here will agree that crypto is just starting to get more attention. As many people are suggesting we are in the early adopting stage and when this space comes into the general adoption space, the prices will go trough the roof.
The fund will be looking to invest in some very interesting niches. Amongst them are: Decentralized Social Media, Web 3 & Games, Layer 1 & 2, Privacy and creator monetization, just to name a few. I am most excited about the Game part of things as I can already see a lot of great developments happening in this area. Games like Splinterlands or Illuvium will certainly survive during this bear market and I can not wait for all the amazing games that will follow. What is also very interesting is that privacy gets some attention as it was a no-go topic for the past few months.
Last but not least, it is very interesting to see that FTX is using some of its money to allocate towards US-politicians. This is called lobbyism and is totally legal. What’s more interesting is, that they are focusing on both parties which will make them heard for sure. For the crypto community it is pleasant to see that crypto will have a voice in the future.
To wrap things up I want to say that the current state of the market is just a snapshot. It can get worse over the short term but the long term is without a doubt very bullish for crypto! There are more influences being made and more funds being allocated. This certainly brings great hope into the current dark and red times!
Published by ga38jem on
On 8th June2022