I felt compelled to author this small tidbit after seeing several posts explaining Ether 2.0, it’s benefits, and timeframe. They all lacked what I’m about to explain.

I’ll start by saying this isn’t about STAKING. This topic has been spoken about enough, and it’s creating spam due to ppl trying to refer others to newer platforms with higher staking fees. It’s also creating scams. Be wary of new platforms, do your own DD!

Gas fees have been mentioned with minimal effort. I’ll explain briefly and also why this is pertinent to my main point.

Basically the ether blockchain uses computer power which needs energy, the consumption (cost) of the energy plus mining fees (newly minted coins) are what comprise the typical gas fee paid to miners. It creates a spam free and secure environment, but it’s expensive due to ether’s unlimited coin cap. The fee structure is also changing from individual miners to the network itself creating a more “fair” fee.

JULY 2021:

EIP1559

EIP1559 is technically phase 3 of the ethereum 2.0 roll out. Differing from other phases there is a hard start date this July. This update is creating the current surge.

This “fix” is going to GREATLY reduce gas fees. It will make ETH deflationary, not by capping the coin, but by drastically reducing the number of newly minted coins while simultaneously adding cash burns to the blockchain.

Simply put; this update is going to add value and create demand.

The deflationary measures alone will add value while the minimization of new coins creates less supply and more demand. This recipe lead to the recent run up to $3,500.

Miners and ether aficionados are calling this update: The Ethereum Scarcity Engine.

All of these updates ARE HAPPENING this July. People have been hurrying to grab coins now before the fix goes live. They will continue to do so until the fix and up until 2.0 is officially launched. Thus continuing a bullish run.

Ethereum is now searched more then Bitcoin.

Ethereum improvement proposal 1559 will reduce fees, reduce supply, and create demand.

This is not financial advice. This is my opinion based on factual information.