Ethereum Breakout on PoS News?

The classic buy the news sell the release might be currently in play here for Ethereum. All the news and headlines are pointing towards Ethereum going PoS this summer and with that a new furry of hype is starting to from. It does feel like it's a hesitant hype however because the history of Ethereum saying they are going to move to a better system or PoS system reaches all the way back to 2017 Five years ago.

Critics

In the world we live in now we should all be aware that for some reason everyone feels they are a expert on every subject and know what's always best why everyone else that has a different opinion is a A hole! It's a sad truth of what's unfolding online and just the population in general but I feel like we are starting to become more aware of it and starting to change our tone. However there is still the lame a$$ cancel culture that for some reason others are still abiding by. I understand the cancel culture does have it's moments of positive changes however they constantly just complain about EVERYTHING and never seem happy. Is it building a better world? NOPE there's a fine line between just complaining about everything and actully doing your research and putting up a real fight for real change that matters. Something that seems to be been greatly blurred in the last few years.

One of those cancel culture changes is people up in arms over NFTs and how power hungry and "bad" Ethereum and Bitcoin are to the environment. What they fail to see is what's really happening. More power stations and more efficient methods of producing power and going green or renewable is being pushed faster than ever because of crypto and Proof of Work Systems.

While I can't really group Ethereum into this mix since they did say many years before all this went down that they where moving to a Proof of Stake type system they are still getting headlines and positive feedback in general about this move.

The Rally Unfolding

There are a number of changes that have happened and are about to happen to Ethereum over the next few months. All of which to me have a bullish signs I believe let's take a look at what they are.

• Less energy usage
  The proof of stake system simply uses less electric there's no question about that. I run a number of Proof of stake coins on a custom PC I built that uses 7 watts when not mining and about 40 watts max when it's mining a number of proof of stake coins. That means my total power bill for running MANY proof of stake coins off one computer is less than $0.15 a day. Compare that to something like running a single GPU at 300 watts and you're looking at about $1 a day in electric to mine.

• EIP 1559 The Burn
  This update to the Ethereum blockchain was rather recent. It implements a solid burn on every transaction. As the network becomes more congested this base burn fee increases. The idea behind it is to keep out spam and make it some developers have to be smart about how they interact with the main chain. By constantly hitting the chain for unneeded information and ways it means the developer or it's users have to pay more. Two things which can destroy your app if you're not correcting it.

You can see this burn on Watch the burn https://watchtheburn.com/ while there was once a time when this burn was actully burring more than what was mined that no longer is the case. For the most part it's now pushing about a 35% reduction in supply emissions going out through this burn. This does however mean less Ethereum to go around. I think this was smart honestly. It helps regulate and hold developers accountable and it only removes the rewards on the transaction end and not the minting end. That means the mint rate is still the same but once it's used the supply is reduced.

• The Simple Truth to PoS
  For any proof of stake type token we often see a vast majority of it locked up into pools and mining. I expect at least 50% of Ethereum to be locked up once the switch happens. That means essentially the supply of Ethereum will dry up by at least half when this switch happens. In theory that should mean a $3,000 ETH price should hit close to $6,000 being that half is locked and half is now liquid.