The Bull Case For Ethereum

Ethereum is one step closer to The Merge. June 09, 2022 [UNSUBSCRIBE]( | [WEBSITE]( [Altucher Confidential] “We have seen large moves and supply shocks in crypto before, but I believe the Merge will create the largest and most violent one we have ever seen at scale.” [HERO IMAGE] The Bull Case For Ethereum By Chris Campbell “The Situation Is Getting Worse By The Day” That’s what the President of the US Chamber of Commerce just said about the supply chain. If you thought the supply chain issues were over, think again… Things are about to get much, much worse. And everything from your local grocery store to your gas station could be impacted. That’s why I’m urging everyone I can to prepare now… [To see the #1 move to make before this problem gets any worse, click here now.]( Ethereum is one step closer to The Merge. Ethereum developers completed another test merge this week, a crucial step in its upcoming upgrade later this year. The test merge happened on the Ropsten network, a clone of Ethereum’s main network, making it the most significant successful test yet. Recently, Ethereum co-founder Vitalik Buterin suggested that the Merge will happen in August if the tests are successful. This means that Ethereum 2.0 — where Ethereum will move from proof-of-work to proof-of-stake — is closer than ever. (Before the main event, however, there will be two more tests on separate test networks — Sepolia and Goerli. If those go well, Ethereum 2.0 will likely happen before Summer’s end.) The Merge is a Big Deal It’s a big deal for several reasons. Not only will it enable faster transactions, it will make Ethereum more scalable and deflationary. Consider this: Currently, about 13,200 Ethereum is issued to proof-of-work (PoW) miners every single day. After the Merge, that issuance rate drops dramatically — to 1,590 Ethereum — as PoW miners are removed from Ethereum. That’s nearly a 90% drop in issuance, equivalent to THREE Bitcoin halvings, happening all at once. This also means less inherent sell pressure. I’ll explain. “Financial Nostradamus” makes bone-chilling prediction… [Click here for more...]( 2019, [this man]( wrote a book called Aftermath that shocked the world by predicting that “Something on the scale of a global pandemic will be the cause of the next financial crisis” And that “it will happen with 100% certainty” in the next few years. Just four months later we had the first reported case of the coronavirus. Now he’s back with another [bone-chilling prediction.]( A prediction that’s already starting to come true. A prediction I’m urging you to watch right away. Because if what he says is true, within days this single event will have a profound effect on your retirement assets, your banks account and your entire way of life. [Click Here to See This Exclusive Interview]( Warning: What you’re about to see is a REAL exclusive interview with a former CIA and Pentagon insider. The content herein is NOT for the faint of heart. Miners to Stakers Due to overhead costs, Ethereum miners sell an estimated 80% of their daily Ethereum rewards to cover those costs. Since, as mentioned, daily issuance is 13,200 Ethereum in rewards to PoW miners, 80% of that is 10,560 Ethereum — worth about $19 million. That’s a lot of sell pressure. On the other hand, unlike miners, stakers don’t have huge overhead. On average, they sell an estimated 10% of their Ethereum rewards. Meaning? We’ll likely see a dramatic drop in sell pressure. But that’s not all… Meanwhile, thanks to EIP-1559, a protocol change that took place in August 2021, roughly 70% of Ethereum fees are taken out of circulation and burned. Hal Press of North Rock Digital [argues here]( that this “burn” mechanism also creates buying pressure. While the fee burn does not directly create buying pressure, says Press, “it does do so indirectly with a high degree of certainty and can be thought of as a stock buyback.” A good analogy for this, says Press, “is if Apple charged for iPhones in Apple shares instead of fiat currency. After receiving your Apple shares for an iPhone, Apple would then retire 70% of the shares and redistribute the remaining 30% back to existing shareholders as a stock dividend.” Buy Pressure > Sell Pressure In short, the Ethereum bulls are betting on one thing: That, post-merge, the high daily sell pressure will be replaced by immense buy pressure. To sum up the bull case: Today, with PoW, Ethereum needs millions of dollars of new money each day to keep the price flat. When the Merge happens, all of the sell pressure created by miners will vanish and the opposite will happen: Ethereum will need holders to sell millions of dollars worth of Ethereum to keep the price from going up. None of this mentions all of the ripple effects of Ethereum becoming cheaper to use and more scalable, either. “We have seen large moves and supply shocks in crypto before,” says Press, “but I believe the Merge will create the largest and most violent one we have ever seen at scale.” [Ed. note: James and I have been tracking this trend for a while. While James is ultra-bullish on Ethereum, he also believes that there are immense opportunities that will benefit from Ethereum, and outperform both Bitcoin and Ethereum in the long run. To check out James’ bull case on what we’re calling “next-gen cryptos,” [click here.]( Until tomorrow, [Chris Campbell] Chris Campbell For Altucher Confidential Famous Trader: “I Can’t Keep This Quiet…” [Click here for more...]( few years ago… After meeting with presidents… After getting featured in Forbes, Fox, Wired and even Playboy… This man stepped out of the limelight. Now he’s back with what could be [the most shocking prediction]( of his career. It could have a $16.8 trillion impact on the world economy. [It could also give you a chance to get very rich — click here to see how.]( Subsribe To My Podcast [The James Altucher Show]( [The James Altucher Website]( [Subscribe With YouTube]( [Subscribe On Messenger]( [Subscribe With iTunes]( [Connected on LinkedIn]( Add AltucherConfidential@email.threefounderspublishing.com to your address book: [Whitelist Us]( Join the conversation! Follow me on social media: [Facebook Group]( [Facebook]( [Twitter]( [Pinterest]( [Instagram]( [Three founders Publishing]( To end your Altucher Confidential e-mail subscription and associated external offers sent from Altucher Confidential, feel free to [click here](. If you are having trouble receiving your Altucher Confidential subscription, you can ensure its arrival in your mailbox by [whitelisting Altucher Confidential](. Altucher Confidential is committed to protecting and respecting your privacy. Please read [our Privacy Statement.]( For any further comments or concerns please email us at AltucherConfidential@threefounderspublishing.com. Nothing in this e-mail should be considered personalized financial advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized financial advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after online publication or 72 hours after the mailing of a printed-only publication prior to following an initial recommendation. Any investments recommended in this letter should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company. © 2022 Three Founders Publishing, LLC., 808 Saint Paul Street, Baltimore MD 21202. All Rights Reserved. Protected by copyright laws of the United States and international treaties. This newsletter may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of Three Founders Publishing, LLC. EMAIL REFERENCE ID: 430ALCED01[.](