Ethereum is about to get a makeover. The popular crypto network that runs Ether, the world’s second- most-valuable digital currency, could morph as early as Sept. 14 into a configuration that shakes up the entire crypto universe.
The long-anticipated software change, “the Merge” to crypto fans worldwide, will lower Ethereum’s energy use by 99%, silencing critics who dislike the blockchain for its electricity consumption—enough to power Finland for a year by one estimate.
But for investors, the advantage is that Ether post-Merge will resemble more of a traditional financial asset that pays interest, like a bond or a certificate of deposit. That could entice hedge funds, asset managers, and wealthy individuals who’ve stayed on the crypto sidelines so far. The new software will also make possible upgrades that promise to speed transactions and lower fees, another hook that could lure investors.
Some enthusiasts even predict the changes, taken together, could result in Ether leapfrogging Bitcoin in value. Bitcoin, the most popular token, has a market value that’s almost twice that of Ether. But over the last three months, while Bitcoin’s price declined slightly, Ether’s price has increased by about 30%, as more investors bought the token in anticipation of a payoff from the Merge.
This story is from the September 19, 2022 edition of Bloomberg Businessweek US.
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This story is from the September 19, 2022 edition of Bloomberg Businessweek US.
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