The price of Ethereum has been surging in recent weeks, partially due to the excitement surrounding the network’s upcoming update, ‘The Merge.’
The Merge could push the biggest altcoin even higher. In July, ETH developers stated that the update was tentatively scheduled for mid-September. Now, the official kick-off date is slated for September 6, and The Merge needs to be completed sometime between September 10 and September 20.
It is an exciting moment for cryptocurrency investors, and there are several no-brainer reasons to consider purchasing Ethereum ahead of The Merge.
Ethereum Is Already A Strong Network
The Merge aside, Ethereum is already a major player in the crypto space. It is also the second-most popular crypto behind Bitcoin (BTC), and it is the most widely used network for decentralized applications (dApps) such as decentralized finance (DeFi) projects and NFT marketplaces.
In other words, there are many things to like about Ethereum already, and it has more real-world utility than most other cryptos. While nobody can confirm how it will work over time, Ethereum has a better chance of seeing any long-term growth, and The Merge will just strengthen it.
The Merge Will Majorly Improve Its Energy Efficiency
Currently, Ethereum still utilizes a proof of work (PoW) mining protocol, which is time and energy-intensive. Nevertheless, The Merge will move Ethereum to a proof of stake (PoS) protocol, which is notably more efficient.
After the update, the network is expected to need about 99.95% less energy than under the current PoW protocol. That can give it a huge advantage over Bitcoin, which has been majorly criticized for its energy usage.
It Will Compete With Smaller Networks Efficiently
Moving to a PoS system may help in expanding Ethereum’s capabilities, making it quite easy to compete with the newer blockchains.
Most of the smaller networks already use PoS, which gives them a benefit over bigger cryptos like Ethereum and Bitcoin that still use PoW. Once Ethereum completes its upgrade, however, it will be on a more level playing field with networks like Cardano and Solana.
Buy Bitcoin NowRisks To Consider Before Purchasing
While The Merge is a major step in the right direction for Ethereum, there are still several risks involved.
Despite its benefits, Ethereum is still a speculative investment. It might be the strongest blockchain existing currently, but in case crypto and decentralized networks never became mainstream with the public, it will be quite tough for Ethereum to thrive over the long term. At this point, it is quite early to say how the crypto market will fare in the future.
Furthermore, Ethereum may see considerable volatility as it rolls out The Merge. Developers have already found some bugs related to the forthcoming upgrade, and although they managed to quickly resolve the issue, there is always a chance for more hiccups as we move closer to the release date.
Ethereum has a long history of delaying updates. The Merge was originally planned for June before getting pushed to August, then eventually delayed until September. While it is better to hold off on an update than to rush and risk some serious issues, all of these delays may cause investors to lose confidence in Ethereum – not to mention give the competing cryptos more time to catch up.
Ethereum is not perfect, but the update might make it a strong investment. In case you are willing to take on more risk for the opportunity of possibly earning massive rewards, now may be the perfect time to invest.
