Ethereum 2.0 a short but intense explanation

Ethereum 2.0 a short but intense explanation

By Roberto D. | CryptoFarm | 26 May 2020

After long waits, it seems that Ethereum 2.0 is finally ready for launch. But with what prospects on the value of ETH?

For the moment, many investors are increasingly speculating that the transition of the blockchain to a Proof-of-Stake (PoS) system will help the entry of new investors. It is also estimated that version 2.0 of the blockchain can help cryptocurrency to solve some of its known scalability problems, which have plagued it for a long time over the past few years, thus allowing it to continue supporting its massive growth rate.

Not only that, more and more analysts are also observing that Ethereum 2.0 could also lead the cryptocurrency to see a negative annual issue, for an event that could be extremely bullish for Ethereum.

But will this really be the path that Ethereum 2.0 will be destined to take? Let's find out better


Ethereum 2.0, the effect could be bullish for ETH

According to what is emerging in recent days, it is now widely believed that the Ethereum 2.0 testnet can be launched in June (July in the worst case), thus putting in place the first step towards the long transition of the cryptocurrency towards a new "era ".

However, there is no certainty about the actual conduct of this testnet in July. For example, Ethereum founder Vitalik Buterin sent mixed signals about whether it will actually be launched during that month, preferring to speak more cautiously about the third quarter of this year.

Now, beyond the technical aspects of Ethereum 2.0, it is interesting to note that several authoritative exponents have estimated that ETH 2.0 will have the consequence of significantly reducing the annual emission of Ethereum, so much so that the "balance" could be negative.

Industry expert David Hoffman said:

"Over the past week, the Ethereum network has generated ~ 1900 ETH in commissions per day, or ~ 700,000 annualized ETH. With 10 million ETH on PoS, the network will produce ~ 575,000 ETH per year. With the lowering of ETH2 commissions, it is very likely that in the end we will arrive at a negative annual issue "

 however, he then wanted to put out the fires of easy enthusiasm, saying that the market balance will hardly be reached in a negative point.

Of course, in the event that the annual issue of Ethereum should prove negative, the cryptocurrency would become a real deflationary asset, with consequent upward pressure on its values.

In short, Ethereum 2.0 is, like almost everything in the world of cryptocurrencies, an unknown factor. A lot is expected from this update and obviously the hope is that Ethereum will increase its value. What do you think about it?


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Roberto D.
Roberto D.

Born, and still living, in Italy. Passionate about cryptocurrencies since I discovered ethereum in 2016


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