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August and September will see key events in the timeline of Ethereum and the crypto-industry: ETH will make a fork (a copy of the blockchain) and switch from mining to stacking (PoS).
— On August 4, there was an update to the ethereum test network “Bellatrix,” which reduced energy consumption by 99.9%.
— On August 6-12 there will be a full transition of the Goerli test network to PoS. This is the penultimate phase.
ETH may react positively to these events as they add to the chances of a successful ether fork.
— On August 10, the inflation report for July will be released. The forecast of 8.9% is the lower inflation the market is laying down. If it is higher, it could negatively affect the markets and ETH as well.
— The key date for the fork of ETH is September 19, by which date the ether shall be pushed on expectations. For many aspiring bloggers who are interested in cryptocurrency, this is a golden time when you can get a lot of hype. To begin with, to get into the top charts there is an opportunity to buy real instagram followers, which will give you the basis for rapid and high-quality development. Then, by tying in some interesting content, you can take a leading position in the charts.
What can we conclude?
The next 2 weeks greatly affect the price of ETH. Moreover, on the background of the problems with Solana, the ether looks more fundamental.
In case of a successful fork of the test network (4-12) in August and lower inflation, we could easily see ETH at $2000-$2200+.
If inflation is higher, even a temporary decline in markets won’t have much effect on the ETH trend. Last year, ether started growing AFTER the fork. All the movement will start at PoS.
The flip side of ETH: what is a complexity bomb
A complexity bomb is an update to the protocol that makes it harder to mine and increases the time between blocks. This makes the network unusable.
The slower the block is created → the fewer transactions go through → the fewer miners earn → the more miners are churned out and the blockchain dies.
In essence, the complexity bomb gives miners “freedom of choice”: create their new network or stay on the dead blockchain. Not a bad alternative.
The EF uses that kind of chip after every major ether update to force the community to switch to the “right network.”
In 2016, after splitting into Ethereum and Ethereum Classic, ethereum developers launched a complexity bomb into ETC and it killed the blockchain. However, in 2017, the “classic” community defused the bomb and brought the blockchain back to life.
On September 19, 2022, there shall be a fork of Ethereum that shall split the network into ETH1 (stacking) and ETHPOW (mining). Ethereum developers plan to launch a complexity bomb on ETHPOW to “kill” what they consider to be an unnecessary network.
Incidentally, this is another reason to switch to stacking: now the Ethereum whales will be able to fully control the network at the expense of a significant share of ETH.
It is worth admitting that ethereum is centralized in terms of development, because a small group of people make decisions and “force the community” to follow them.
Battle of ETH1 vs ETHPOW: how to make money?
A post for ETH holders and those who don’t understand how things are going to happen
After a successful Ethereum merger, there will be another copy of the blockchain (excluding the consensus algorithm and the complexity bomb).
Did you have 5 ETH? Your wallet will have 5 ETH1 (the new version of PoS) + 5 ETHPOW (the current ether).
In simple words: you’ll get airdrop ETHPOW, which now be separate from ETH1 in price and in everything.
What will happen with ETHPOW
To begin with, ETHPOW completely eliminates the stake ether. In other words, the 13.2 million ETH that is already mated will not be forked, which means that ETHPOW’s supply will be immediately lower by 13.2 million ethers.
The split will happen only after 6-12 months, and it is more likely that the POW community will decide to simply remove those ethers from the offer, because they “betrayed” the main network.
Stablecoins
The most interesting starts with Stablecoins and DeFi, because key players will choose ETH1 with 99% probability, which means that these tokens on ETHPOW will become useless:
— USDC — would prefer ETH1, as would USDT;
— WBTC — useless because the custodians will choose ETH1, and therefore the coins cannot be exchanged for bitcoins;
— WBNB — useless, Binance will support ETH1.
Only ETHPOW has value.
Pursuit of ETHPOW.
POW has a community of miners who will support this network. Also, ETHPOW will be the only valuable asset on the POW blockchain. That means the demand for it will be huge. Moreover, the hype around this trend will be on top and has a great opportunity to spread within different pro-bloggers, but beginners also have a chance to make some hype if they have some good experience in this topic. With the help of good content and good promotion (f.e. increase metrics – buy instagram followers, likes etc.) beginners can create a popular profile with an involved audience.
Moreover, CEX will not immediately flush ETHPOW, it will only be available on DEX supporting ETHPOW. If your DEX doesn’t support POW, you have to run your own node and directly interact with exchange’s smart contracts, or worse — to write your own smart contract to buy ETHPOW.
The difficulty to buy ETHPOW after the fork will lead to huge demand for it before listing on exchanges. Manna from heaven for techies.
Conclusion
It might be wise to buy ETH and hedge it through a short to get a drop in ETHPOW (not financial advice).
September 19 will be X day for the entire crypto industry. No one knows how the fork will end, what will happen with a successful merger and with the price of ethers.
Take a day off right away for this day, preferably without anyone touching it. This event is comparable to the launch of a man into space, only in crypto.
