If you know that microstrategy and square are two other tech companies with btc on their balance sheets it’s safe to say that microstrategy ceo michael saylor has no plans to sell and the fact that square rebranded to block to emphasize its bitcoin focus should tell you all you need to know about its position.
This leaves the publicly traded crypto mining companies and you can find out when they could be forced to sell. Anyhow another crypto specific factor that’s been moving the crypto market is all the news related to ethereum which has the largest ecosystem of any cryptocurrency. About two weeks ago we got confirmation that ethereum could potentially be transitioning from proof of work to proof of stake sometime in september and last week we got more details about what happens after that from the one and only vitalik buterin. In a presentation at the eth cc conference in paris vitalik explained that when the merge happens in september ethereum will be just 55 complete for ethereum to reach that 100 status. It will have to undergo four more similarly titled phases.
These are the surge the verge the purge and the splurge as the name suggests the surge involves increasing ethereum’s transactions per second from around 15 to around hundred thousand using zero knowledge proofs. Sharding for those who don’t know sharding involves splitting a single blockchain into different chunks called shards. As for the verge the easy explanation is that it will make it easier for people to become validators on ethereum’s beacon chain as validators will not have to store as much data about the ethereum blockchain on their devices to process transactions. As the name again suggests the purge essentially involves deleting any old data from the ethereum blockchain that isn’t required anymore. This will again lower validator requirements which will further improve ethereum’s decentralization.
Something that vitalik has been adamant about lately. And finally there’s the splurge which vitalik said includes quote all the other fun stuff which likely includes many of the upgrades you see here on this slide. For anyone listening quantum resistance is at the top of the list followed by increasing ethereum’s layer one speed and further simplifying ethereum. There are no timelines for any of these next phases because it’s actually not up to vitalik even when they happen it’s up to the ethereum community. It’s also somewhat irrelevant because the merge is arguably.
The most important one of them all and it’s also the one that’s coming over the horizon naturally the merge is likely to make eth moon and if you’re subscribed to my weekly newsletter you’ll know that eth could rise as high as 0. 1 btc in the coming weeks. Assuming btc is around 30k or more that translates to a roughly 3k eth which is almost 2x from its current price. In my newsletter I also mentioned that eth isn’t the only cryptocurrency you should watch when the merge comes around. It’s more than likely that ethereum classics, etc coin and lido finance’s ldo token will see massive rallies as well.
This is because many ethereum miners are likely to migrate to ethereum classic once ethereum transitions to proof of stake. This mass migration in mining power could increase the security of the ethereum classic blockchain. Something that’s been lacking ever since the two chains split. As for ldo – the protocol is the largest single staker of eth on ethereum’s beacon chain. It stands to reason then that ldo will rally alongside eth as the merge approaches but be aware that there are no guarantees here.