CPI Figures and Ethereum Integration

Ethereum integration:

This week, Ethereum will move from a mining mechanism to a Proof of Stake mechanism, also referred to as a “merge.”

This event will mark the end of the network's PoW era and bring a major transformation to the network's operating system.

According to an official post from the Ethereum Foundation, one of the things that will be greatly affected is the way Ethereum is issued.

The current mining rewards are around 13,000 ETH per day, while the network operates on the PoW mining mechanism.

Once you move to PoS stakes, the stakes will be around 1,600 ETH per day after the merger.

This alone reduces the version by about 90%.

Additionally, the Ethereum Foundation post explains:

With an average gas price of at least 16 GWEI, a minimum of 1,600 ETH is burned each day, effectively resulting in net Ethereum inflation reaching zero or less after the merger.

This event is dubbed by many as the “triple halving,” which clearly indicates the Bitcoin mining reward split.

It is also worth noting that many people are expecting the consolidation event to be a news selling type with a potential negative impact on the price of Ethereum in the short term.

No matter how things turn out, one thing is very likely that volatility will rise.

At the time of writing this article, the merger is expected to take place on September 15th.

Consumer Price Index (CPI) Figures:

The US Consumer Price Index is the most widely used measure of inflation in a country, although it does not represent all products.

The index has a significant impact on the market, and is usually the cause of increased volatility.

So far, whenever the CPI numbers come out, the cryptocurrency market is fluctuating wildly.

In August, when the US Bureau of Labor Statistics released its July figures, the price of Bitcoin soared by nearly $1,000.

This happens on all similar occasions.

It is also worth noting that high inflation is also the reason for higher interest rates and the US Federal Reserve is scheduled to release its rate statement later this month as well.

Posted using Proof of Brain