Crypto Reacts: Was the Ethereum Merger a Success or a Mess?

For better or worse, we live in a post-merger world. Ethereum is finally a Proof-Of-Stake blockchain. The change is among the most important and divisive news of the year. The Ethereum side sees it as a technological marvel and the bitcoin side as a big mistake. For the first time since we launched Crypto Reacts, both camps are on completely opposite ends of the spectrum.

Get some popcorn. This will be fun.

It all starts with Vitalik’s strange philosophical explanation of what fusion means.

Is this man joking?

“Proof of Work is based on the laws of physics, so you have to work with the world as it is… Whereas because Proof of Stake is virtualized in this way, it basically allows us to create a simulated universe that has its own laws of physics .”

Is Vitalik real? What does this man mean by this? In a clearer state, the man behind Ethereum he tweeted:

“Good merge everyone. This is a great moment for the Ethereum ecosystem. Everyone who helped make the merger happen should feel very proud today.”

The question here is what did everyone else say?

The Ethereum community went to bat for the merger

  • Our friends at Coindesk wrote of the live screening party: “When Merge officially started at 6:43am. UTC, more than 41,000 people were tuning in on YouTube for an “Ethereum Mainnet Merge Viewing Party”. They watched with bated breath as key metrics ticked over suggesting that Ethereum’s core systems had remained intact. After about 15 minutes, the Merger was officially finalized, meaning it could be declared a success.”
  • Messari founder Ryan Selkis doubled down on his Ethereum bet, “The positive impact of the Merger is huge, and there’s a good chance that institutions and the woke crowd will offer ETH to the moon now that it’s ‘clean’. I still like BTC but the game just changed!”
  • Steve Fink of Nouns NFT praised the development team, “merging is unpredictable means the engineers are absolutely elite”.
  • Shape Shift’s Erik Voorhees went a bit overboard in addressing the same idea, “the sheer triumph of human ingenuity demonstrated by the Ethereum merger is extremely inspiring. It happened without the centralization of a company, without the coercion of government, without patents, politicians or borders.”
  • Ethereum maximalist Eric.eth honored his name, “It’s an absolutely incredible feat to move a globally used blockchain to PoS without most end users even noticing or having to.”

That’s the bright side. You can’t say we didn’t reflect the positive side of the merger, because we did.

ETHUSD Price Chart for 09/16/2022 - TradingView

ETH price chart for 09/16/2022 on Eightcap | Source: ETH/USD on TradingView.com

Bitcoiners do not believe in Ethereum after the merger

Are bitcoin maximalists too grumpy and anti-innovation? Or is this something that changes everything? The answers depend on who you ask. One thing is certain though. bitcoin maxis came out in full force to poke fun and paint the Ethereum merger as a serious tactical error.

  • Synonym’s John Carvalho outlined the situation and attacked where it hurts: the price. “Bitcoin’s biggest and most divisive competitor, Ethereum, abandoned the competition for hashpower and went full security in an enterprise today in what the media is calling ‘The Merge.’ ETH prices down 12% on news.”
  • The legendary Adam Buck defined Proof-of-Stake as “neo-feudal serfs and digital fiefdoms ruled by overlords. The digital dark ages were accelerated by corporate controlled pre-mined money.”
  • Space Force’s Jason Lowery predicted the likely outcome of the situation. “PoS is not going to fail. PoS is not going to be broken. PoS will behave exactly as PoS is designed to behave, as all trust-based, permission-based, and peer-to-peer resource management systems have behaved for the past 7,500 years.”
  • Tuur Demeester of Adamant Research described the state of the Ethereum network after the merger. “44% of ETH is staked by just 2 entities, Lido & Coinbase. Add Kraken and you jump to 52% of total ETH being staked by 3 entities.”
  • Regarding concentration issues, Finbold provides more data. “After the upgrade, the first address has validated around 188 blocks representing 28.97%, while the second largest has 16.18% or 105 blocks. In general, the two wallets dominate Ethereum transaction processing, data storage and the addition of new blockchain blocks.”

And that’s today’s Crypto Reacts.

Featured Image by StartupStockPhotos from Pixabay | Charts by TradingView

Post-Merge, Ethereum mining

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