The Merge event refers to the moment when the ETH main chain will merge with the Beacon Chain to become a PoS blockchain.
Billionaire investor Mark Cuban has revealed two reasons why he believes in Ethereum’s long-awaited merger event. Ethereum
This summer is important.
“I feel very optimistic,” Cuban said in an interview with Fortune on Tuesday.
A merger event is the moment when the Ethereum main chain will merge with the beacon chain and the network will officially transition from a proof-work (PoW) blockchain to a proof-of-stake (PoS).
Cuban, who calls himself “Ethereum Maxi,” believes the merger is important for two main reasons.
The first is the network’s transition to PoS, which can significantly reduce its environmental impact, as PoW mining has come under scrutiny from various industry watchers.
The energy consumption involved in crypto mining operations is cited as the main reason for Tesla Inc.
Changed the decision to accept Bitcoin
as a payment method.
Ethereum’s transition to PoS could reduce Ethereum’s power consumption by 99%.
The second reason is the change in the issuance of Ethereum after the merger. Cuban noted the fact that he finds particularly interesting is that if a small amount of ETH is issued, the asset can become deflationary.
Last month, analysts estimated that the transition to PoS is expected to reduce ethereum’s issuance rate by about 90%.
Cuba is not the only “Ethereum Maxi” optimistic about the forecast for the second-largest cryptocurrency after the merger. Data shows long-term ETH holders amassed $12 billion worth of ETH when the price of ETH fell in January due to growing interest in the merger.
According to data from Benzinga Pro, ETH is down 4.9% in the past 24 hours to trade at $3,341.