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This week in crypto: all eyes on Ethereum 2.0

Harry Hamburg
Harry Hamburg
13 min read
This week in crypto: all eyes on Ethereum 2.0

After the disaster that was last week, let’s start with some good news.

Actually, this news could be better than good. It could transform the world of crypto, and bring many more people into it.

The news is that Ethereum will switch from Proof of Work to Proof of Stake this August (if things go according to plan).

It’s hard to overstate what a big deal this is.

But here are just three of the reasons this will change the game.

  1. Ethereum will move from merely being a growth asset, to one that also provides passive income of roughly 4%-7% per year.
  2. Ethereum will become “green”. Proof of Work (PoW) uses a ton of energy, Proof of Stake (PoS) uses basically none.
  3. People have been waiting for this to happen, and doubting that it ever will, since 2017. This will prove Ethereum is futureproof.

Of course there are many more. But the repercussions of just those three could be huge. This could be the thing that eventually pushes Ethereum past Bitcoin in terms of market cap and popularity.

Back in January 2020 (the year this move to PoS was expected to take place) I listed it as one of three major developments happening that year.

Of course, we now know it didn’t happen. But everything I wrote about it then (aside from the timing) remains true.