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Countdown to ETH Merge... Crypto Tsunami Incoming

By I-HODL | A Crypto Journey | 13 Aug 2022


It's been a while, my friends, hasn't it? What can I say? I've been out and about doing life and so took a bit of a hiatus from blogging. Did ya miss me? I certainly missed sipping tea with you guys and poring over the news of the day, that's for sure. And so much has happened since I've been gone, right? I missed all the juicy stuff.

Nevertheless, I'm here today, just a few days before "The Merge" on or around September 15th/ 16th and I'm excited for it.

An update on my crypto journey

In terms of crypto, I'll tell you what I did recently. In the past month or so, I bought up some Optimism coins and enjoyed a bit of that rally, though I confess I didn't get out at the top as I should have. I kept a few coins on Fantom. Call me a sucker if you will, but putting Andre Cronje aside for a bit, I like the project and I'm hoping to see some rally there.

Following the bankruptcy of crypto lender Celsius Network, the CEL  token crashed and then pumped more than 4000% in two months, but I didn't buy into it, unfortunately, and I still won't to be honest. Maybe I might have fared better buying the bottom, but at this time, I could be wrong, but I feel like I could be REKT if I took the risk. I mean, it's been reported that even Celsius CEO Alex Mashinsky is believed to have cashed in his tokens on the surge. Why on earth would I run in now, right?

I also didn't buy into the Ethereum Classic rally though it has seen quite a run-up, climbing more than 200% in 30 days. But tell me, what did you guys do? And the ETH merge aside, which I think has us all excited, what are some projects you are excited about and have bought into?

The ETH merge and Implications

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I'd say the upcoming merge, transforming Ethereum, the second biggest cryptocurrency by market cap, from proof of work to proof of stake is arguably the most talked about crypto event after Terra's collapse. There's a lot riding on this development though, and I'd say that while there is some fear and doubt, this time around there's a lot less FUD and a whole lot more FOMO as new traders enter the space on the news, rubbing hands, and expecting to open their eyes, say, October 1, as newly minted millionaires.

Honestly though, I don't know about all that. For the time that I've spent in the  crypto space, I've learned to temper my dreams of overnight wealth. Profits, sure. Risk, of course. A SHIB type spike? I don't know about all of that. I'd want to manage those expectations a bit. 

But what are your price projections for ETH after the merge? Do you think there's gonna be a new all time high? Now if you'd bought into ETH when it was trading below $1,000 earlier this year, a new high would be something, wouldn't it? ETH aside though, and as is usually the case, I think there's likely gonna be quite a run up for the Ethereum ecosystem in general. Which ETH projects have you invested in?

Also, when it comes to the cost of ETH transactions, a number of ETH layer 2s are in a dead heat race. Is your money on Polygon's ZK rollups or Optimism's Optimistic rollup? So many choices. I'd say this one's gonna be interesting.

And what about other layer 1 protocols? After all, with ETH as a proof of stake project, there's gonna be a bit more of a level playing field, isn't there? As proof of stake, ETH is pretty much like its contenders- HBAR, ZIL, FTM, SOL, OASIS, KDA, etc., only ETH has more investor support and institutional confidence while the other alt coins all claim to be faster and more efficient.  

And not to be discounted, as concerns are also expressed about ETH's security as proof of stake versus as a proof of work project where the concern was about energy utilization and efficiency, there is still the lurking threat- small though it may be- of a hard fork. Will ETH miners shift to ETC or go the way of another ETH hard fork? The chips are still on the table for that one.

ADA and The Merge

When I first got into cryptocurrency trading/ investing in 2021, I followed ADA for a bit. I'd heard of ADA as the "ETH-Killer", and I bought into the project at the time. I have since traded out of ADA though. This is not to attack or criticize anyone else who believes in the project. 

We all make investment decisions for different reasons and I respect your right to support whichever project you wish to. I'd hardly be the person to posture and give investment advice. I can only speak for my journey and, for me, I'd just say that there wasn't enough taking place with Cardano to keep me interested, particularly in a space that was constantly growing and innovating. I wasn't sold on the experimenting in Ethiopia concept, and the argument about meticulous peer reviews, etc., while perhaps having merit, wasn't enough for me. 

And so, my question here is this: With ETH making the transition to proof of stake, how do you think ADA's gonna measure up?

In other news...

Tornado Cash crumbles

This past week, the US Treasury Department sanctioned crypto mixer, Tornado Cash, blacklisting the protocol and its associated smart contracts. And there's since been reports of the arrest of a Tornado Cash developer in the Netherlands.

Of course, there are two schools of thought as a result of this news. On the one hand, there was the concern that hackers blatantly and openly use mixers and tumblers to launder billions, an act which one could hardly have expected to be allowed to continue without action of some sort. On the other hand, however, there is the concern that persons who legitimately use mixers and tumblers as a tool to protect their privacy while conducting transactions online are now negatively affected by the sanctions which some would argue impose upon their rights. Where do you fall on this one?

 

Well, friends, this brings me to the end of today's post, but I'm back on site and excited to be back. Thanks for reading and for your support. I hope to return to a more regular posting schedule in the days ahead, and I'm definitely excited to discuss continued developments in the crypto space with you. Until we meet again next time, please remember to be safe. We'll chat soon.

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I-HODL
I-HODL

Your friendly, neighborhood crypto enthusiast.


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