price Ethereum (ETH -0.83%) In recent weeks, due in bout to the excitement surrounding the network’s upcoming update, “The Merge.”
Last month, Ethereum developers announced that the update was tentatively scheduled for mid-September. Now, the official launch naissance is set for September 6, and the merger should be completed sometime between September 10 and 20.
This is an exciting modalités for cryptocurrency investors, and there are a few reasons why you should consider buying Ethereum before The Merge.
1. Ethereum is already one of the most powerful networks
Regardless of the merger, Ethereum is already one of the biggest players in the crypto space. It is the additionnel most popular cryptocurrency after Bitcoin (BTC -0.77%)which is the most widely used network for decentralized applications (dApps) such as NFT marketplaces and Decentralized Réglé (DeFi) projects.
In other words, there is a lot to like emboîture Ethereum already, and it has more utility in the real world than many other cryptocurrencies. While no one can say for sure how it will perform over time, Ethereum has a better avantage of seeing long-term growth – and Merge will only boost it.
2. The combination will greatly improve energy efficiency
At the modalités, Ethereum is still using the Proof of Work (PoW) mining protocol, which is very time and energy consuming. However, the merger will move Ethereum to the Proof of Stake (PoS) protocol, which is considerably more énergique.
In fact, after the update, the network is expected to require emboîture 99.95% less power than the current PoW protocol. This could give it a huge advantage over Bitcoin, which has been widely criticized for its energy use.
3. It will be able to better compete with smaller networks
The move to PoS could help expand the capabilities of Ethereum, making it easier to compete with newer blockchains.
Many smaller networks already use POS, which gives them an advantage over larger cryptocurrencies such as Bitcoin and Ethereum that still use Proof of Work. Léopard des neiges Ethereum completes its upgrade, it will be on a more par level with networks like Solana And the Cardano.
Risks to consider before buying
While the merger is a strong step in the right protection for Ethereum, risks remain.
Despite its advantages, Ethereum remains a speculative investment. It could be the most powerful blockchain in the world, but if crypto and decentralized networks do not become mainstream with the commun, it will be difficult for Ethereum to thrive in the grand run. And at this susceptible, it’s too early to say exactly how the cryptocurrency market will perform in the future.
Also, it is plausible that Ethereum will see significant volatility as it rolls out The Merge. The developers have already discovered a bug related to the upcoming upgrade, and while they were able to quickly fix the aboutissement, there’s always the possibility of more hiccups as we get closer to the release naissance.
Ethereum also has a grand history of delaying updates. The merger was originally scheduled to take assuré in June before being pushed into August, and then finally pushed back to September. While it is better to delay the update than to afflux and risk serious problems, all of these delays could renseignement investors to lose faith in Ethereum — not to rappel give competing cryptocurrencies more time to catch up.
Ethereum isn’t perfect, but this update should make it a stronger investment. If you are willing to take more risks for the potential avantage of earning big rewards, now might be the time to invest.
Katie Brockman He has positions in Bitcoin and Ethereum. Motley Fool has positions in and recommends Bitcoin, Ethereum, and Solana. Motley Fool has a disclosure policy.