Thread by @CryptoTony__

Ok so what is the #Ethereum Merge and how will it inevitably be bullish for the ecosystem

Incoming 🧵 1/453

2/453 :

So the Merge is the combining of the existing layer of the #Ethereum network along with the new POS (Proof of stake) consensus layer, the Beacon chain 🤝

Remember the 3 benefits this brings ..
Scalability, sustainability and more importantly security 💯

3/453 :

The merge itself is expected to be introduced Q3 / Q4 of 2022. This is the biggest upgrade to date for the #Ethereum network .. Now how does this transaction bring with it a bullish case. Well listen up legends ‼️ ... 5 stages are being implemented :

4/454 : STAGE 1 / THE MERGE

This relates to the merge the transition we touched base on earlier :

“ The combining of the existing layer of the #Ethereum network along with the new POS (Proof of stake) consensus layer, the Beacon chain “

5/454 : STAGE 2 / THE SURGE

This relates to the #Ethereum network introducing networks to help make the network more Scalable. This is via #ZKrollups along with a method called “ Sharding “ .. This splits the data on the same blockchain allowing easier processing 🤝

6/454 : STAGE 3 / THE VERGE

This stage will introduce what is called “ Verkle Trees “ ..

Verkle Trees will allow you to store a large amount of data by providing a short piece of any proof of that data. This process allows Proofs to be more efficient 💯

7/454 : STAGE 4 + 5 / THE PURGE + THE SPLURGE

So the aim of The Purge is to reduce spare historical data, which will make the validating process of the #Blockchain more efficient. The Splurge will make the network run smoother

End of this phase, we should see 100,000 TXs / s ‼️

8/454 :

Now we all know that supply and demand is what creates sell / buy pressure within any given asset. Whether it’s #Crypto #Rolex or whatever .. Now with this transition to POS, Sell pressure is reduced due the reduction in $ETH issuance

From 13k $ETH to 1,600 $ETH ‼️

9/454 :

Miners will no longer be selling $ETH and only stakes rewards will be sold instead. The rewards are nearly 10 x less per day .. But the demand will likely increase in time, hence a supply shock vs a demand increase

PRICE GO UPPY 🤝

10/454 :

Now all this is amazing, but will take some time ‼️ So of course price may not reflect instant bullish action immediately. We likely won’t see the reduction in fees or quicker transaction until further down the line

BEAR THIS IN MIND BEFORE GOING ALL IN NOW 🤝

11/454 :

Here are some other facts about the merge I came across from this infographic ..

Basically this reinforces my bias of a long term bullish $ETH .. Now can we still drop due to $BTC .. Ofcourse we can

This doesn’t prevent that, but will I be a buyer .. ABSOLUTELY 👑

12/454 :

Thanks for reading legends and as always please like and retweet, as well as comment your thoughts. Oh and there’s not 454 tweets in this thread .. I’d be mental to create that many 🤝

Link below for further reading

ethereum.org/en/upgrades/me…