Bitcoin is the first successful internet money based on peer-to-peer technology; whereby no central bank or authority is involved in the transaction and production of the Bitcoin currency. It was created by an anonymous individual/group under the name, Satoshi Nakamoto. The source code is available publicly as an open source project, anybody can look at it and be part of the developmental process.
Ethereum is a smart contract platform that enables developers to build tokens and decentralized applications (dapps). ETH is the native currency for the Ethereum platform and also works as the transaction fees to miners on the Ethereum network. Ethereum is the pioneer for blockchain based smart contracts.
For Hayes, the effect after the arrival of The Merge promote the usability of the Ethereum a decentralized open-source blockchain with smart contracts functionality. and will result in an increase in the price of ETH, something more or less similar to what is happening with Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. after a cut in the reward margin.
- Hayes poses a very positive scenario for the share price of Ethereum
- Points out that The Merge will be an event that will have a major impact
- He justifies his thesis in the theory of reflexibility proposed by George Soros.
- Hayes indicated that the effect will be similar to that of a Halving an event in which the total rewards per confirmed block halves. on the web Bitcoin
The controversial former CEO of BitMEX, Arthur Hayes, again spoke out in favour of Ethereum and assured that the arrival ofThe Merge will have very positive implications for the digital digital technologies are these electronic tools that have the ability to generate, store or even process data. currency, almost comparable to the effect of a Halving on the quotation of Bitcoin.
The theory of reflexivity on Ethereum
Hayes’ statements came to place in a new publication through its official blog where the former manager of BitMEX made a reflection on the basis of some theories, citing specifically that of “reflexibility”. George Soros’ theory, which postulates that there is a feedback loop between market prices and the expectations that its participants have for a given situation.
Under the expectations about the arrival ofThe Merge, Hayes argues that this phenomenon could have a positive impact on the share price of Ethereum, This is due to the reflexive relation between its price and its deflationary properties. In this regard he noted:
“If The Merge is successful… traders will buy ETH today, knowing that the more the price goes up, the more the network a network refers to all nodes in the operation of a blockchain at any given moment in time. will be used and the more deflationary the currency currency is a medium of exchange that defines value. will become, which will drive the price up more, the network will be used more, and so on and so forth and so on… This is a virtuous circle for market an area or arena, online or offline, in which commercial dealings are conducted. bulls.”
Hayes also pointed out that this reading could work in reverse in the event thatThe Merge not work, but given the progress the update has been making on test networks, he dismissed the idea and indicated that this has been a particular booster for the marketing of both the digital currency and its futures.
Halving-like effect for Bitcoin
As for the comparison with Bitcoin and the effect of a Halving for the digital currency, Hayes made the point based on the effect that it could haveThe Merge for Ethereum, assuring that more deflationary properties could be implemented once the upgrade takes place.
In this regard, Hayes noted:
“La reducción estructural de la inflación solo ocurrirá después de The Merge. Espero que lo veamos similar a los Halving de Bitcoin, es decir, todos sabemos las fechas en que ocurrirán y, sin embargo, Bitcoin siempre se recupera después de cada Halving”.
The signaling comes to place after the effect that has every Halving sobre Bitcoin. Historically, prices tend to increase in the months following the implementation of the cut in rewards, and this is driven by the decrease in supply that miners contributors to a blockchain taking part in the process of mining. They can be professional miners or organizations with large-scale operations, or hobbyists who set up mining rigs at home or in the office. bring in when their earnings are reduced.
In the case of Ethereum, the network has a property entered in the EIP-1559 which burns a proportion of the rewards linked to each block a file containing information on transactions completed during a given time period. Blocks are the constituent parts of a blockchain. of transactions. This measure has had a good impact on the price of the digital currency and has shortened the rate of issuance of new ETH, to have days where the burning destroying a certain number of digital coins to reduce their issue. This method is used to fight inflation and increase the value of cryptocurrency. All token burning transactions are recorded in the blockchain as a transaction. Therefore, anyone can verify that the coins were destroyed. outpaces the creation ofEther the form of payment used in the operation of the distribution application platform, Ethereum. on the net.
The Merge coming in September
Let us keep in mind thatThe Merge will be implemented in the main network of Ethereum in mid-September, so there are high expectations among investors and developers about the positive repercussions of this event.
Both Hayes and other analysts have indicated that this would be a complete change change — a concept relevant to cryptocurrencies that use the UTXO model — is the number of coins sent back to a user after they use their unspent outputs to initiate a transaction. in the dynamics of the economy of the country. Ethereum, as dispensing with the figure of the miners could significantly shorten the liquidity how easily a cryptocurrency can be bought and sold without impacting the overall market price. that reaches the exchanges, at the same time that there would be a greater interest in staking participation in a proof-of-stake (PoS) system to put your tokens in to serve as a validator to the blockchain and receive rewards. with ETH and derive rewards for escrow a financial instrument where assets or cash are held by a third party while a buyer and a seller complete a deal. funds.
Let us remember that Ethereum is the network with the largest number of decentralized decentralization refers to the property of a system in which nodes or actors work in concert in a distributed fashion to achieve a common goal. applications and use cases today, being home to a large volume how much cryptocurrency has been traded over a set period, such as the past 24 hours. of projects. DeFi a movement encouraging alternatives to traditional, centralized forms of financial services. and in the NFT.
- Arthur Hayes apologizes for calling Ethereum “Shitcoin”, is optimistic about rise after The Merge
- JPMorgan predicts Coinbase is an American company that operates a cryptocurrency exchange platform. to benefit ‘significantly’ from Ethereum’s The Merge
- The Merge Could Come Sooner Than Expected: Tentative Timeline for Ethereum Update
Article by Angel Di Matteo / DiarioBitcoin
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