In this post, I shared 5 reasons why you should buy ETH now.
Ethereum has been on the news of late because of the anticipation of the ETH 2.0 launch.
ETH 2.0 promises to bring lasting solutions to the problems facing the present Ethereum blockchain.
Interestingly, experts are speculating that Ethereum will outperform bitcoin when the update is completed.
Hmm…if that happens, then this is a good time to stack up ETH (especially in this dip).
Are you ready to know why you should buy ETH now? Let’s get into the post proper.
First, let’s talk about The Merge…
The merge is a popular term for the transition of the Ethereum blockchain from the proof of work consensus mechanism to the proof of stake consensus mechanism.
The goal is to make the blockchain faster and more energy-efficient.
Also, it will have lower transaction fees for users.
This is exciting because it will help Ethereum to scale up faster and give it more competitive advantages.
Little wonder why many folks are speculating that Ethereum will potentially outpace Bitcoin (which still uses a PoW protocol).
The merge is currently in its second of three phases, and it’s expected to be completed in August of 2022.
Amazing!
[Suggested Read: Proof Of Work Vs. Proof Of Stake – Which Is A Better Consensus Mechanism?]
Moving on, let’s see the 5 reasons why you should start stacking up Ethereum.
Keep reading!
5 Reasons Why You Should Buy ETH Now
1. ETH Triple Halving
Halving is a process of reducing the block rewards of miners after a given period.
The reduction is usually by half. And it happens at a uniform frequency until the maximum supply of the coin is reached.
Halving helps to achieve a reduction in the supply of new coins.
This leads to scarcity and eventually an increased value of the coin.
Now, Bitcoin is top on the list of coins that halve.
And there have been 3 bitcoin halves since its launch.
Initially, Bitcoin miners were rewarded with 50 BTC but it is now 6.25 BTC.
The 3 halvings resulted in an 87.5% reduction in the number of bitcoin miners’ rewards.
As for Ethereum, the number of ETH that miners will receive as a reward after the merge will be reduced by 90%.
And this is equivalent to 3 bitcoin halvings hence, it is called triple halving.
Now, why is this important?
Historically, each time bitcoin halves, it hits a new all-time high within a few months.
Thus, Ethereum’s triple halving will most likely lead to a high all-time high.
With that in mind, this might be a smart time to stack up Ethereum and watch your wallet swell in the coming months.
[Suggested Read: Bitcoin Halving Is Changing Crypto – This Is The Complete List Of Coins That Halve]
2. Increased ETH Staking APY
The second reason why you should buy Ethereum now is the Increased ETH Staking APY.
Usually, miners in a Proof of Work protocol earn in 2 ways: the block rewards I mentioned earlier and secondly from transaction fees.
Following the merge, transaction fees will no longer go to Ethereum miners but to stakers.
This will potentially increase the staking reward from the current 4% APY to 9-12% APY. Wow!
Again, Proof of Work miners are forced to sell their ETH out of necessity to pay for electricity and maintain their hardware.
But with Proof of Stake, there is no hardware to maintain.
So, miners who become validators in the PoS protocol only need to stake their ETH to earn more ETH at the rate of 9-12% APY.
And if you were troubled that previous stakers of ETH will sell it off immediately after the merge is completed and crash the coin’s price, worry less!
Because stakers cannot unstake their ETH after the merge until after an additional upgrade which will happen months after the merge. Yay!
Therefore, increased APY and demand for ETH, and no sell pressure after the merge is a vital reason to start stacking up ETH.
3. ETH will become deflationary after the merge
Another reason why you should buy ETH now is that it will become a deflationary token after the merge.
A coin is deflationary when its total circulating supply is constantly reducing.
It can be achieved by burning the coin or staking it.
The idea is that a reduced supply and increased demand will lead to an increase in the price of the coin.
For Ethereum, the combination of the triple having, the inability to withdraw staked ETH, and the EIP-1559 standard (that is aimed at increasing the mining speed of ETH and incentivizing it), will introduce deflation into Ethereum tokenomics.
Here’s how:
The network is projected to produce 1 million ETH per year depending on the amount staked (which is presently about 13 million) and burn 3.1 million ETH per year.
This is already a 2.1 million net reduction from burning.
Pretty cool, huh?
[Suggested Read: Deflationary Tokens – The Complete List (2022) | What Are Deflationary Tokens?]
4. ETH could play a significant role in the metaverse
The metaverse is one of the hottest investing topics nowadays.
You already know that developers can build everything from DeFi apps to NFTs and more on Ethereum.
And the metaverse excels mainly in these types of applications.
Needless to say, Ethereum is one of the biggest players in this space.
In fact, two ring leaders within the metaverse, Decentraland, and Sandbox are built on the Ethereum blockchain.
With the merge coming, Ethereum could become the strength of the entire metaverse.
Although the metaverse is still speculative at the moment, if it does succeed, Ethereum will be a major contributor.
Moreover, with Ethereum’s transition to Proof of Stake, more apps will likely be deployed on it.
And you know what? That means more wins for you if you started stacking up Ethereum now. Superb!
[Suggested Read: GameFi Explained – How To Make Money From Blockchain Games]
5. Reduced energy consumption
Finally, you should buy ETH now because the merge will result in a reduction in energy consumption.
Research shows that Ethereum’s transition to Proof of Stake will reduce the consumption of electricity by over 99%.
That’s because the Ethereum network will not require more electricity to run than is used to run a laptop.
And as such, Ethereum will become environment-friendly.
If you’ve been following the news, you’ll notice that investors in recent years only want to put their money in companies that are environmentally cautious.
Remember Elon Musk once made a tweet in that regard where he said, “ Tesla has suspended vehicle purchases using Bitcoin” because of the harm bitcoin mining was doing to the environment.
With Ethereum’s transition to Proof of Stake, this will no longer be a problem.
Thus, making it easier for institutions that care for the environment to invest and build on Ethereum.
Of course, this will lead to increased demand and eventually, a price increase. Yay!
There you have the 5 reasons why you should buy Ethereum now.
But we’re not done here yet.
Keep reading!
The Best Way To Buy Ethereum Now
I suggest that you buy this coin using the DCA strategy, i.e Dollar Cost Averaging.
This means that you will buy a given quantity of ETH periodically to get an average great price.
A good place you can do this is on Binance Auto-Invest.
Here, the coin is automatically purchased on your behalf and staked to enable you to earn interest in it.
We have comprehensive articles on DCA and Binance Auto-invest.
You can click on the link below to read them and get a clearer picture of what I am saying:
- What is Dollar–Cost Averaging(DCA)? | Why You Should Start Using This Investment Strategy
- Binance Auto-Invest – Stop Guessing And Start Earning Crypto!
Nevertheless, I’m not a financial adviser, always do due diligence before investing in any coin.
Crypto Trading Made Easy!
You can also join our Telegram community at https://t.me/ctmastery
Conclusion
This is where we’ll draw the drapes in this post. I hope you enjoyed reading it.
Now, I’d love to hear from you; what is your take on the merge, and will you buy ETH now?
Tell me in the comments section below.
Also, share this post with your friends using the social media icons below.
Thank you!
At the $1,800 fix, there will be triggers for a reversal and a bullish rally to set in.
Now the following factors are important:
1) ETH and BNB triggers for alts and plus overtaking Bitcoin.
2) Mid-September will be a tipping point for ETH miners, most likely they will switch to ETC mining as the hardfork on ETHPoW will be unpopular.
3) Until ETH launches on PoS (Proof-of-Stake) there is no reason to dump Ether into the cup, i.e. no pressure from sellers.
Conclusion:
With $1,800 secured, expect momentum to $2,400-$2500, watch for liquidity, macro market and Fed decisions.