What's going on moon gang, i'm very excited to bring you this video about ethereum now before we get into it. If it comes off as me being a little bit biased in support of ethereum, i just want you know that i absolutely am. I mean in 2021, ether had to gain over 400, but beyond those noteworthy gains. I truly believe that ethereum as a crypto project, the technology is downright impressive, and that brings me to what i want to talk about in this particular video.

I believe that ethereum will have an insane gang buster year in 2022, and a lot of that ends up relating to the merge of ethereum ethereum 2.0 eth 2.0 serenity, whatever you want to call it so in this video i want to cover all the main things That you need to know when's it going to happen. Do you need to do anything? Is it going to impact gas fees and everything in between that's exactly what we'll be discussing in this video? So, let's get to it now very quickly for those of you who don't know ethereum brands itself as the world's programmable blockchain the backbone of our digital future. Now i know all that stuff sounds pretty fancy, but in all honesty the technology is very, very impressive. It's a community driven technology which explains why some of the updates, maybe don't go as fast as a centralized company, corporation or power, or anything like that.

But really it is the backbone of the things that are so cool and really came onto the scene in 2021, including d5 nfts dows, just to name a few much of that stuff. All these dabs and everything else, that's related. The backbone is ethereum, which makes me so incredibly excited for its future. So you, like crypto, you like this idea of the future of decentralized finance and you're all about making it faster, more scalable and more secure, so you're all on board with ethereum 2.0.

The next logical question is what actually has to be done now without getting into too many of the weeds too much of the detail here you need to know a couple things. First of all, ethereum has its main net, it's the main blockchain and as of now there's another side, one and that's called the beacon chain. Now the difference between these two and just so, you know the beacon chain actually got created in december of 2020. So it's been around for a bit, and that was exciting, but from there there's two different consensus models and it is not the main purpose of this video.

I can make another one talking about consensus models, but what you really need to know is that the mainnet is proof of work, and then this beacon chain is proof of stake, and that's exactly where we're trying to head is proof of stake, because it's going to Help with a lot of things such as faster, more scalable, more secure and eventually a nice awesome technical development for ethereum when we eventually implement sharding, but anyway, that's a whole different subject. So basically, what they're trying to do is a nice development on the beacon chain and where it's when it gets to where it needs to be. There's gon na be a merge event between these two chains and then that's gon na make ethereum ethereum 2.0 proof of stake, so we're basically pivoting off of the proof of work consensus model over to proof of stake which, across the board, will be a massive technological Improvement. Another very common question is: are you going to end up with duplicate coins? Free coins extra coins, something along those lines, maybe perhaps like eath and then eat 2.0, both in your wallet? Now, with this i went through all the documentation from the ethereum community and i can't find anything that definitively answers it.

But there have been some good discussions and if you logically think about it, that's more common in the world of forking, like an official pivot from one blockchain, now forking off into another. I think it's better to think of this as a merge. So, in my best estimate, i don't think we're going to get free, duplicates or extras or anything like that. I think eth will remain east, but it's more of the technology in the back end, that's going to end up being updated, but what about gas fees? You know that expensive bill that you seem to have to pay every time you want to do an ethereum-based transaction.

Will the movement from east to east 2.0 help with that? Unfortunately, the answer is probably no. It's going to help inherently a little bit because, yes, it is more scalable, maybe there's going to be less congestion but in reality the things that are going to help the most with gas fees, these transaction fees to get your transactions promised or actually all these layer. Two solutions, such as loop, ring or polygon, so with that i know this is a bit of a bummer, because that's one of the biggest drawbacks of ethereum is just the cost, that's associated with whether you're, building making minting in nft or processing or just generically. Creating a smart contract or just sending ethereum back and forth with a friend anything along those lines.

I feel you, my heart goes out: i've paid some very expensive fees and the gas it can be very, very expensive and that's more of a function of the fact of how popular ethereum is, but with it. Yes, it'll inherently help a little that is documented, but the biggest benefit is by far going to be the layer. Two solutions, and, like i mentioned before the top two that come to mind, are loop ring polygon, but that's just two of many. I mean layer twos, their popularity got pretty high and substantial in 2021, but i think they're going to explode even more in 2022., so with all that out of the way.

The last remaining question is when, when is this going to go down? Unfortunately, there is not a set in stone date for this particular movement. There are very strong estimations, and this my estimation, it's really pegged to this concept of the aero glacier update what this did was. It took a difficulty bomb and it kind of pushed it back and right now, it's sitting around halfway through the year june of 2022. What this difficulty bomb does is.

It makes the computation to update it. The proof of work model that we're currently on it makes it kind of worthless to do it. It becomes far too difficult. So it puts a lot of pressure to switch over to this beacon chain where we have more of the proof-of-stake model.

So what you know - and i know that's getting a little complicated there - it just makes mining worthless. So it puts a lot of pressure on the overall community and system to actually kind of get their butt in gear and get it over to proof of stake. Once again, that difficulty bomb got pushed back punted down the line to june of 2022. So my best estimation is that it would be before that and if i really had to like, be a bit more specific with my guests, just kind of judging of what we're seeing on both reddit forums and twitter, i'm kind of targeting the start of q2.

If you really want more of a specific date, but once again, these are all estimations, there's nothing etched in stone, alright. So now we have a better idea of what this eth 2.0 merge is all about. Why they're doing it? If you have to do anything its implications with gas fees and hopefully, hopefully fingers cross of when it will occur, but with all that there are still three very important things that i want to cover. So don't turn the video off right now number one.

If you decide to help with the transition for this merge the beacon chain coming into the main net and decide to stake your ethereum just so, you know you will be unable to stake it until it actually goes through. So it's kind of it's not a permanent decision, but it's not something that you're going to be able to undo until serenity actually goes live just a little bit of a warning. There number two: yes, this update will make ethereum faster, more scalable and more secure, but it will also do one very important thing and this will particularly have an impact on the price of ether, and i'm talking about the fact that each 2.0 will make ethereum deflationary. So earlier on, there was an update eip 1559 that helped at least battle the nature of ethereum being inflationary, so it kind of stomped it down a little bit, but it was still inflationary, as you can see here when the merge actually goes through.

This is going to make it deflationary and then obviously if the supply is going down and the demand is constant or most likely going to go up, that will naturally increase the price of ethereum. So if you happen to be an investor, congratulations and finally, let's put both of those together and talk about volatility. I believe that this code update this technological update is going to prompt quite a bit of volatility, and my reasoning, for that is twofold number one. Right now there is a lot of eth staked in east 2.0.

I'm talking at the time that i'm filming this almost 9 million, which, if you do that quick math, is over 30 billion dollars. Now, as i said, remember, you can't un-stake once you stake, but when the merge actually goes through well you're going to be able to unstake at your own will, which means that we might see a flood of liquidity so definitely something to consider there and the other Part that i want to bring up is we see this in the crypto market, the futures market, the stock market, one of these things that it could be buy. The rumor sell the news as we get closer and closer to the expected merge date. You can kind of see that there could be a lot of excitement, hence buy the rumor and then, when it actually goes through.

You might see this phenomena of sell the news so tying that, together with the potential increase in like a burst of liquidity, i'm expecting quite a bit of volatility. So i just wanted to call that out, as i suppose, a bit of a cautionary measure overall, i think that 2022 is going to be a crazy exciting year for ethereum. Obviously, i think there's going to be important. Fingers cross hopefully important technological developments, but i think there's going to be more social acceptance, wall street acceptance, corporate acceptance across the board and as this technology and the community continue to improve and grow.

We're going to see the next step forward in decentralized finance, f5 projects. Nfts dows across the entire board. I truly believe that the sky is the limit, which makes me so incredibly excited to be not only an ethereum investor, but also just a pretty hardcore believer. So i appreciate your time.

I hope that i was able to answer some of your questions if you want to help me out and get this video in front of other people who might be interested, i would truly appreciate it if you could drop a like, and if you haven't already don't Forget to join up with the moon gang by hitting the subscribe button, and until i catch you next time best of luck in the markets. You.