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/biz/ - Business & Finance

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51069921 No.51069921 [Reply] [Original]

Why are people saying that the upcoming ETH Merge is going to cause it to be deflationary as fuck since difficulty increases by 90% despite money skelly having said that this transition is also going to make the blockchain as a whole faster while also reducing gas costs.

The assumption that more Ether is burnt per day than minted is therefor incorrect, because that's based under the assumption that post-merge gas costs are going to be the same while minting is going to generate less ETH than previously through mining it...

>> No.51071045

You can tell we're in a bear market when 4 hour long thread with no replies is still up.
Guess I'm correct since nobody answered, anyone that thinks ETH will start being deflationary is delusional, processing will be faster, costs will be lower and still be behind of minted ether per day.

>> No.51071068

>>51069921
what are we drinking this morning?

>> No.51071086

>>51069921
>>51071045
well noticed.
>>51071068

i made an ETH transaction the other day and it went through under 1 minute and cost only $0.50. . which is cheap compared to what it was during full bull. yes. we are beartier. time to load up i'd say

>> No.51071107
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51071107

>>51071068
I’m having a black coffee. Dubs and I’ll chug what’s left of this from last night.

>> No.51071134
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51071134

Gas costs won't be reduced at all. It even says so on ethereum.org, if you mouthbreathers would ever read official documentation

>> No.51071137

>>51071107
Fuck it. Roll.

>buy Jasmy (keeping on topic)

>> No.51071161
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51071161

>>51071107
fuck it im gonna have a copefee too

>> No.51071380

Does this mean line goes up or goes down ?

>> No.51071894

>>51071134
Gas costs WILL be reduced since the demand on the network will be significantly reduced thanks to better scaling.
Gas fees is what won't be reduced.

Network could be as in demand as it was couple months ago and not reach the ridiculous 100-400 $ total cost just to fuel the transaction.

>> No.51071982

>>51071894
Changing consensus doesn't give it better scaling. Increasing block size will. Sharding will. Bridging to l2s will. Changing to proof of stake won't do that though.

>> No.51072717

>>51071982
But it will...who validates transactions on the blockchain? Miners.
How do you gain priority in the queue? Input higher gas fees.
How does the base gas price increase? Demand.

By cutting off mining from the process and instead have anyone staking be the one validating transactions, you're essentially making the process faster since you're no longer depending on hashrate from mining.
Sure improvements like sharding and shit will come too, but I am specifically talking about how the whole process is transacted will change, using less energy and a much more effective way of processing demand.

>> No.51072765

>>51072717
Don't confuse energy savings from proof of stake with cheaper transactions on chain. Transaction capacity does not change with proof of stake.