Ether. Rises After the Shanghai upgrade, bringing year-to-date gain to more than 65 percent. If you've been hoddling your East congratulations to you, there's been a lot of naysayers out there telling you that Eath would be flooding the markets and it was going to do nothing but plummet. Well, apparently those people were wrong.

If is that 2K year to date, it is up 83. The past week alone, it's up seven percent Bitcoin Up 83 past week up 7 If we look at Eth, it is currently up 67 past week, it is up 4.7 I'm not here to bersmirch the name of Bitcoin by any means I Love Bitcoin I Love Ethereum. but I Do think it's interesting when a lot of crypto Twitter Exactly because of the Shanghai upgrade was telling everyone it's gonna crash, it's going to crash. You got to get out and if it's just went up.

So here's what you need to know about the Shanghai upgrade. For those of you who are like yeah, I've been paying attention to these, maybe Onis I want to give you the tldr on the situation and if we can, I want to rewind to about December of 2020. we're going to this particular time frame because that's exactly when the beacon chain went live. What you need to know is this all relates to the world of the consensus mechanism.

How do we ensure the security and validity of these blockchains? Well, you have proof of work and you have proof of stake. There are other consensus mechanisms, but these are by far the two most popular. Bitcoin runs on Proof of Work That's why you need mining sheets. That is the work.

and basically everyone is racing with their computing power to solve extremely difficult mathematical problems. And once again, this is for the security and validity of the blockchain. That's at first how Ethereum's network was running. So Ethereum wanted to go from proof of work to proof of stake.

So instead of using mining rigs, basically you're looking at all the people who have staked their Eth and then randomly from the pool, someone is selected. They validate what's going on. And it's a little bit of random, but you have to own. So inherently with proof of work, you don't have to be an owner.

you just have to have a mining rig set up with proof of stake. You actually have to be an owner. With this, it's less energy intensive. but if you want to be fair just to get the other side of the argument, there are other concerns.

Technically, it is less secure than proof of work proof of Stake consensus mechanism. It is less secure. and also a big thing in the world of crypto is just the fact that you want decentralization. and when you do something like this, well, it kind of inherently is setting yourself up for centralization.

So I just want to kind of give you both sides here. Also in the Shanghai upgrade, the transactions are going to get more efficient. That was an aspect of what's going on here. It's not going to be the main thing, but I just want to share that with all of you.

But really, this is now officially the proof of stake. So the environmental impact going far far down and the overall I Guess what you could say efficiency it is. Now it is improved. So that's the main thing Is this all started in December of 2020 with the beacon chain where basically they have the side chain that was proof of stake while still running on proof of work.

Fast forward to September of 2022. This was the merge event. This is when they merged the beacon chain back into the main chain and now it is proof of stake. It went from proof of work to proof of stake except that was in September of 2022.

There were still technological hurdles that had to be overcome and Shanghai this upgrade is the finalization. It means we are A-Okay We are ready to rock. It is officially proof of stake and part of that means that everyone who was staking for we'll call it eth2. Well now they're kind of freed up and this is exactly why there were so many naysayers saying well when this happens, all of that staked, they're going to be smashing the sell button.

They're not going to want steak anymore, they're going to take their money. and a lot of people were of the opinion they were making the conjecture that this would cause East prices to absolutely plummet well as I just showed you East is now officially over two thousand is gained 67 percent year-to-date I'm not really seeing much selling. where did they potentially get this wrong? Well, there's a couple things I want to get into is. First of all, you have to look at the size of it only 15 of all East with steak which is still roughly a two and a half billion dollar problem and that would be a lot of selling.

but it wasn't like 70 80 90 of East was staked, it was about 15 and also with it if you look in like in a really really nerdy sense. if you look into it well only x amount of this East that was staked could be unstaked and sold per block. so it's not like all of a sudden you're gonna see a flood of selling. It's intentionally segmented so that doesn't happen.

and according to the block, if everyone was doing it as quickly as they possibly could, it would take 60 days just to sell 20 of the steak eats 60 days to sell 20 of the steak teeth. So all this fear-mongering that like it's gonna plummet and everyone's gonna unstake and sell, sell, sell, sell. That's just not a solid technical understanding of the situation. Yeah, it could happen, but it would be more of a slowbleed situation.

and once again, it's roughly a two and A half billion dollar chunk. And that's if they all decide to do it roughly that 15 number. So this is why the naysayers, the people telling you it was gonna plummet got the situation wrong. I Just don't think that they did a deep dive into it.

If anything, people who are particularly hating on Ethereum network and Ether in general I think their best argument is this movement. From proof of work to proof of stake and some other things going on, it does send it up for centralization, but for me I do like the technology that's being built on top of Ethereum, so I'm still a support of it I'm still a supporter of Bitcoin Those are by far my two favorites, but I just want to kind of keep you up to date of what's going on and why a lot of people who were calling for doomsdays surprise surprise were wrong, especially as it relates to the Ether slash Ethereum. Shanghai upgrade. Obviously, if you have any questions, let me know.

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