The Investor’s Guide to The Merge: Understanding and Playing the Opportunity

In the coming months, Ethereum will undergo a change of consensus mechanism from Proof-of-Work to Proof-of-Stake in what has been called “The Merge.” Fundamental improvements that will attract investors include the creation of a more environmentally friendly protocol, the addition of an accessible yield, a net deflationary underlying currency, and increased decentralization/security. The most profound short-term impact is the elimination of miners. Miners are net sellers of Ether on a daily basis. This sell pressure is immediately eliminated from the market. If we assume a constant level of demand from pre-merge conditions, it could actually result in structural net buy pressure.

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