The Merge: When Should I Buy More Ethereum?

By The Lynx | Crypto Lynx | 13 Apr 2022


It’s time for update on my favorite currency for long-term growth and stability—Ethereum. We have all heard of the big update coming later this year, (formerly known as Ethereum 2.0), is now going by the title “The Merge.” This is the merging of the original Ethereum blockchain with the Beacon Chain. According to Anders Byland, Motley Fool analyst and investor, the “recently introduced network uses a power-sipping proof-of-stake architecture rather than the resource-hungry proof-of-work system Ethereum uses today.” This means that gas fees will go down. Many of us have already noticed an improvement in gas fees for Ethereum over the past few months, but it will continue to plummet. I recently sent about $500 in Ethereum to someone as a payment for their work and the gas fee was only $3.00. This same transaction last spring might have cost me more than $50.00. The point is, the biggest complaint that people have had with Ethereum, is vanishing.

This leads to an important question: Should I buy more Ethereum now or wait until The Merge? My short answer is “yes.” It is a "both-and" not "either-or" as I see it. 

If, like me, you believe in blockchain technology and the future of crypto, by on the dips. Get in quickly. Look at past charts for counsel, but do not be discouraged that you didn’t make your move two years ago. There is plenty of room for growth. You can also stake Ethereum on many different platforms for interest.

Ethereum is THE leader in smart contracts worldwide, making it the go-to for decentralized finance apps, many of the crypto-based games, and of course the beloved (and sometimes controversial) world of NFTs.

Of course, there are other options. In the NFT world, Solana is the biggest competitor, but Ether’s first place status does not seem to be under any kind of serious threat. Go ahead and hedge your portfolio with a bit of SOL or some meme coin like DOGE if that makes you feel better, but at least a hefty percentage ought to be in the blue chips like BTC and ETH, in my humble non-professional estimation.

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It may not really matter whether you get in before or after The Merge. There is no historical evidence that the upgrade will lead to immediate and drastic gains; however, the slow and steady growth we have seen is encouraging. That is why I say "yes" to whether you should by now or wait until the merge. Get some now, and then add to it later. The Merge will not only address gas fees, but also speed up transactions. The future looks very bright for my favorite blue-chip currency.

According to Byland, the upgrades should give contract developers “even more reason to stick with the tried-and-true default smart contract network.” He believes that there is a “place for alternative solutions like Solana and Avalanche, but they are not going to throw Ethereum off its throne any time soon.”

As many of you know, I am deep in the NFT world. I tried to get involved in the Polygon (MATIC) NFT world, but what I saw through personal experience and administrating in several projects, MATIC had no chance against Ethereum, even with the close to zero gas fees. I also know a lot of people building projects on Solana. Some are doing ok, and a few are having big success, but when comparing apples to apples, the successful projects of the competitors is small compared to the success of the volume of Ethereum projects.

Why would collectors be willing to pay the gas on Ethereum based NFTs when there are gas free (or nearly gas free) options? I believe it comes down to perception as much as anything.  The fact is, Ethereum is still the leader; this perception is not going to change anytime soon, despite the efforts of competitors in the field. I rub shoulders with a lot of “whales” in the NFT space and 90% of them are only buying Ethereum based NFTs.

I am currently launching an NFT project on the Ethereum blockchain as ERC721 tokens. These will be available on Open Sea following a presale mint in June. I invite you to this project by means of our discord community. We are planning quarterly dividends to holders of these tokens. Here is my invite link where you can learn more:

Twisted Trees (discord.com)

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Either way, even if you are still too wary of the NFT space to get involved, I recommend increasing your holdings in Ethereum. Do not panic on the dips. That is when I buy more. After 10% gains, I transfer a percentage over to stablecoins and wait until the next dip to buy again.

As always, DYOR. I am not a professional. Just another crypto enthusiast, like you. Only invest what you can afford to lose.

Peace,

The Lynx

www.twistedtrees.io

(4) Art Lynx (@ArtLynx1) / Twitter

Twisted Trees (@twistedtreesNFT) / Twitter

 

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The Lynx
The Lynx

A musician, artist, writer, hiker, gamer, avid reader, and NFT creator. I am a person always seeking for new ideas. My name "Lynx' goes back to a nickname in college. I have an online support group for those suffering with grief: www.lifelynx.net.


Crypto Lynx
Crypto Lynx

This blog will inform and entertain. From the perspective of a professional writer and educator with many hobbies, I take a common sense approach to sharing advice and information. I am not a professional trader; therefore, always buy, sell, and trade at your own risk. The information in this blog will be well-researched and factual to the best of my knowledge. Yet, what you do with this information is your decision. www.cryptolynx.co https://twitter.com/ArtLynx1

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