Ethereum deliberately delays transition to Proof-of-Stake
From time to time the topic of transition of the second most capitalized cryptocurrency Ethereum to Proof-of-Stake (PoS, share proof) algorithm from Proof-of-Work (PoW, work proof) becomes the main news. This transition has been dubbed Merge.
And this time Ethereum is outperforming the market, showing a growth of 44% for the week, on yet another news throw-up about the imminent move to Proof-of-Stake.
It seems likely that the current rise in ETH, which began a few days after the news of Ethereum’s next PoS transition date, is based on manipulation designed to eliminate traders who short Ethereum and lure as many users as possible into longs.
Such a build-up of longs will usually be followed by a precipitous crash that will devastate many who believed in and bet on Ethereum’s growth.
The current unexpected growth of Ethereum alone has already led to the liquidation of $394 million worth of positions.
And this elimination only in the last 24 hours.
It looks like it’s time to admit that Ethereum’s transition to Proof-of-Stake will be indefinitely postponed, as it was before, and it won’t come to a real transition after all.
Ethereum’s transition to Proof-of-Stake is one of the most anticipated developments in cryptocurrency. “The merger is designed to move the Ethereum blockchain from its current Proof-of-Work (PoW) consensus mechanism to a Proof-of-Stake (PoS) model, which should be faster and more energy efficient.
“But transferring the second-largest blockchain from one system to another is a complex multi-step process. When implementing it, it is important to weigh each decision. “, the developers say.