Laying wager on rise in ether price becomes 'one of most crowded trades in crypto history'
[Purchase a Print subscription for 11,12 € per week You will be billed 107,91 € per month after the trial ends](https://subs.ft.com/spa3_uk3m?segmentId=461cfe95-f454-6e0b-9f7b-0800950bef25&utm_us=JJIBAX&utm_eu=WWIBEAX&utm_ca=JJIBAZ&utm_as=FIBAZ&ft-content-uuid=f56c48ef-b3ea-4bc4-afbb-2773253a3dd4) [Purchase a Digital subscription for 6,64 € per week You will be billed 39 € per month after the trial ends](https://subs.ft.com/spa3_digital?ft-content-uuid=f56c48ef-b3ea-4bc4-afbb-2773253a3dd4) [Purchase a Trial subscription for 1 € for 4 weeks You will be billed 65 € per month after the trial ends](/signup?offerId=41218b9e-c8ae-c934-43ad-71b13fcb4465&ft-content-uuid=f56c48ef-b3ea-4bc4-afbb-2773253a3dd4)
Ethereum is changing: moving from proof of work to proof of stake. But what does this mean to ordinary users? Here's what you need to know.
The move to proof of stake will add deflationary pressure to the cryptocurrency. Over time, it is possible that more ETH is burned than is issued on a yearly basis, but the merge alone will not make this happen. This combined with a drop in the issuance rate will add deflationary pressure to the cryptocurrency—but it won’t automatically make it deflationary. With proof of work, the total amount of miners are rewarded ~13,000 Ethereum per day. “You are giving your stake to someone else, who may decide to attack with that stake,” he said. Validators can be anyone with at least 32 ETH available to “stake,” or pledge, to the network. “ It is doable by anyone with a sufficiently good computer, electricity, and internet,” he said. “It hurts the network rather than helping, and the return on investment at the moment probably isn't worth it.” Right now, the cryptocurrency’s network uses the same consensus network as [Bitcoin](/resources/what-is-bitcoin-four-minute-instant-guide-explainer): proof of work. But this isn’t true—at least not yet, anyway, according to the Ethereum Foundation and experts who spoke to Decrypt. The long-awaited upgrade to the second biggest cryptocurrency by market cap is expected to take place tonight, based on [current estimates](https://ultrasound.money/). [proof of stake](https://decrypt.co/resources/proof-of-work-vs-proof-of-stake).
Circle, the issuer of USDC — the largest dollar-backed stablecoin issued on Ethereum blockchain with a market capitalization of more than $45 billion — ...
When Ethereum Classic and Ethereum went through a hard fork — a foundational event that triggers a crypto protocol to splinter into two or more blockchains — in 2016, developers for both parties were reluctant to alter their respective identification mechanisms. DeFi projects employing USDC for collateral, as such, ought to have virtually zero value on the PoW chain. “With its staking yields, it will generate an infinitely scalable, long-term source of revenue for digital asset institutions, lenders and exchanges.” “Uniswap doesn’t require oracles,” Aggarwal said. “The exact time will be announced 1 hour before launch with a countdown timer and everything including final code, binaries, config files, nodes info, RPC, explorer, etc. [preparing to fork](https://twitter.com/EthereumPoW/status/1569427804764405761) the protocol recently [tweeted](https://twitter.com/EthereumPoW/status/1569428021437935617?s=20) “ETHW mainnet will happen within 24 hours after the Merge.”
It's one of the biggest events in the history of crypto and blockchain and although there won't be any literal fireworks when the Ethereum blockchain moves ...
Bitcoin pioneered the proof of work model of establishing consensus across its distributed network. [The Merge](https://www.forbes.com/sites/seansteinsmith/2022/09/13/ethereums-paris-upgrade-starts-today-kicking-off-historical-final-merge-process/)” and it marks the moment that Ethereum moves from a system that requires the “validators” that keep the blockchain running to work through a computing problem to simply staking eth tokens as collateral for the privilege. [Ethereum blockchain](https://www.forbes.com/newsletters/forbescryptoassetadvisor/2022/09/14/ethereums-merge-is-happening-tonight/) moves from proof of work to proof of stake, true believers in eth are still celebrating around the world.
Ethereum, the second-largest blockchain behind bitcoin, is expected to begin a technical upgrade dubbed the "merge." Here are four things investors should ...
"The merge will definitely make Ethereum more secure," says Gorbunov. Due to that barrier, Gorbunov expects Ethereum to become a lot safer. [Ether](https://www.cnbc.com/quotes/ETH.CM=) is valued at about $1,600 per coin as of Sept. And as the supply of ether decreases, the value of individual coins could increase, which would be welcome news for investors. However, this model is expected to be much less energy intensive. Both are algorithms used to allow users to add new cryptocurrency transactions and keep a record of them on a blockchain network.
The Merge will lead to the reduction of the Ethereum blockchain's carbon footprint, but it will not lower gas fees or improve Ethereum's scalability, ...
CoinDesk is an independent operating subsidiary of [Digital Currency Group](https://dcg.co/), which invests in [cryptocurrencies](https://dcg.co/#digital-assets-portfolio) and blockchain [startups](https://dcg.co/portfolio/). [South Korean Court Issues Arrest Warrant for Terra Co-Founder Do Kwon:](https://www.coindesk.com/business/2022/09/14/s-korean-court-issues-arrest-warrant-against-terra-co-founder-do-kwon-report/) The warrant also includes five others, according to a report. [strict set of editorial policies](/ethics/). [Crypto Giant FTX Eyes Raising Money to Fund Acquisitions: Source:](https://www.coindesk.com/business/2022/09/14/crypto-giant-ftx-eyes-raising-money-to-fund-acquisitions-source/) Sam Bankman-Fried’s exchange is raising capital as it considers a retail-focused deal, a person familiar with the matter said. initial jobless](https://www.dol.gov/) (Sept. [Bitcoiners Owe Andrew Ross Sorkin a Big Thank You:](https://www.coindesk.com/layer2/2022/09/12/bitcoiners-owe-andrew-ross-sorkin-a-big-thank-you/) By successfully campaigning to further politicize the payments system, The New York Times columnist just made value-neutral cryptocurrency networks more valuable in the long term. [Crypto Traders in Wait-and-See Mode in Countdown to Ethereum Merge:](https://www.coindesk.com/markets/2022/09/14/crypto-traders-in-wait-and-see-mode-in-countdown-to-ethereum-merge/) Ether was trading around the $1,500 level as the Merge approaches in less than 12 hours. And [sign up for First Mover](https://www.coindesk.com/newsletters/first-mover/), our daily newsletter putting the latest moves in crypto markets in context. “Ethereum and Bitcoin, the two oldest and largest blockchain projects, are both still using PoW which is widely (and rightly) considered wasteful,” Mihailo Bjelic, co-founder of Polygon, told CoinDesk in an email. HKT/SGT(12:30 p.m. The Merge is also unlikely to improve Ethereum’s scalability significantly, James Key, CEO of Autonomy Network told CoinDesk. "Given the jump in ETH/USD’s price last month, the Merge appears to have been priced in," James Trescothick, global market analyst for brokerage platform tixee, wrote in an email.