Is it too late to play Ethereum’s upcoming Merge?
Currencies / cryptocurrency Sep 15, 2022 - 09:13 PM GMTBy: Stephen_McBride
Ethereum’s big merge is happening on September 14…
RiskHedge Chief Analyst Stephen McBride says it’s the most important crypto event since Ethereum’s debut seven years ago.
The Merge is set to forever transform Ethereum, the second-biggest crypto.
It’ll make it more energy efficient and attractive for big-money investors to own.
And most important, if Ethereum founder Vitalik Buterin is correct—the coming Merge will open the door for Ethereum to soar in price.
Already in just the past two months, ETH has shot up around 70% leading up to the big day.
Buterin isn’t your typical crypto founder. He’s no cheerleader for Ethereum’s price. He’s known for being reserved, cautious, and even critical of Ethereum at times.
So it’s a big deal that he said—in his typical understated way—that the price of Ethereum is likely just getting warmed up:
Once the Merge actually happens then I expect morale is going to go way up…
I basically expect that the Merge is going to be not priced in, by which I mean not even just market terms, but even psychological and narrative terms.
...I think it’s not going to be priced in pretty much until after it happens.
Simply put: Buterin believes ETH is trading too cheap…
And that the Merge—scheduled to happen on September 14—will change that.
Stephen McBride has been pounding the table about this big opportunity for nearly a year…
And now that we're here, I asked him to share the best ways to profit from this opportunity…
***
Chris Reilly, executive editor, RiskHedge: Stephen, you’ve been talking about the Ethereum Merge for a while…
How its update will make ETH a must-own asset.
And you’ve also talked about the concept of the “Triple Halving” occurring in a single day.
What’s the best way to make money from this?
Stephen McBride, chief analyst, RiskHedge: The simplest way is to buy Ethereum.
I agree with Buterin that the Merge will be game-changing.
Imagine buying Apple stock when it launched the first iPhone in 2007.
It was the start of a whole new era. Apple’s stock went on to appreciate 3,627%.
Ethereum’s in a similar place today. And it has something else important in common with Apple stock.
Ethereum can pay you a “dividend" if you own it the right way.
Chris: What do you mean by “dividend?”
Stephen: I'm sure you've heard about staking…
When you stake your ETH, you lend it to Ethereum’s blockchain, which uses it to validate transactions.
You're helping to support the network.
That's how proof-of-stake works, in a nutshell. That’s what the Merge is all about.
When you stake your Ethereum today, you’ll collect about a 4% yield.
It's like getting paid every time someone uses the internet. Or, in this case, Ethereum's blockchain.
And here's where it gets even better…
After the September Merge, the yield on Ethereum is expected to roughly double from the current 4% to about 8%...
I expect investors will rush in to claim this high yield.
Chris: A high yield from a big, fast-growing “business”… that’s a unique combination you won’t find in the stock market.
Stephen: Correct. Find me a tech stock growing 100%+ per year and paying out an 8% dividend. You can’t.
By staking your Ethereum, you’ll get capital gains if the price appreciates, as I expect. And you’ll collect a roughly 8% yield after the Merge is complete.
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