Three pivotal events in September are set to dictate the pace of the cryptocurrency market for the rest of the year and beyond. These events could lead to the “Bitcoin flippening.”
One key factor is the compensation of Mt. Gox creditors. The year 2014 will always be marked in the hearts of investors as Mt. Gox, one of Bitcoin’s most prominent exchanges, suffered an audacious hack that left crypto crooks bottling in a whooping 850,000 BTC. In early June, the staff in charge announced the rehabilitation process would begin in late August.
One week ago, Havoc had risen on the crypto Twitter community as rumours spread that 137,000 BTC would be released for compensation at a go. Fear struck the crypto community as such a move would mean that those being compensated may opt to dump their BTCs once they lay hands on them. This means that Bitcoin’s price could fluctuate just after the rehabilitation process set for September 15, 2022, begins.
The second significant event is the most anticipated event on the Ethereum blockchain called the Ethereum Merge, which will see the validating process of transactions transition from Proof-of-Work to Proof-of-Stake. The spell-binding event will be going live on September 15.
What To Expect From the Ethereum Merge?
The Ethereum network, dated back to 2013, popularly known for executing smart contracts, plans to efficiently improve transaction speed by up to 100,000 transactions per second. This increment in transaction speed will also minimize gas fees( fees paid to complete a transaction on the network).
Currently, the Ethereum blockchain can handle up to 30 transactions per second. But, the faster the transaction speed, means more transactions will total to lower gas fees.
Buterin stated that the Ethereum Merge would also cut down 99.5% of Ethereum’s carbon emission as the fully transitioned merge will require less power to verify transactions. Also, the blockchain will not require validators to solve complex equations as per the current Ethereum network running under PoW.
Interestingly, the merge will only be 55% complete, as Buterin stated in a Community Conference on July 22, adding that the full merge will take place later in 2023.
Cardano’s Vasil Hardfork
The Cardano Vasil upgrade is also one major event in the crypto world. Named after a Bulgarian mathematician Vasil Dabov, a prominent Cardano ambassador, the event was initially set for June this year but has been postponed on a few occasions and is set for 22nd September as announced by Charles Hoskinson.
The Vasil Upgrade is the third stage in the Cardano road map that boosts the network’s usability and scalability. In the Goguen era, Cardano underwent the Alonzo upgrade back on 13th September 2021, creating a path for users to create decentralized applications for the first time in ADA’s History. The Goguen era allows users to create new tokens, increasing its utility. The consummation of the Goguen era will see Cardano become a smart contract-based, decentralized, public-key figure.
The next era and number four in Cardano’s road map is the Basho era which will see the network improve its growth and adoption. Sidechains fit best as a mechanism and increase the network’s capacity by offloading work from the main chain. This era will see the Cardano network divided into smaller data blocks, making more transactions at higher speeds.
The last and final era of the Cardano will have the addition of a treasury system where for every transaction on the Cardano blockchain, a fraction of the fees will be moved to the treasury for development in the blockchain.
ETH and Cardano’s Price Prediction
September is set to mark a massive turnaround for the crypto community as the two networks develop to their maximum best. The crypto world is in the hope of a price surge after the two popular networks undergo upgrades.
In a recent price prediction by Bloomberg, analyst Mike McGlone has it that by the end of the year, Ethereum will accelerate to $4,500. As for Cardano, widely known Benjamin Cowen, with a multitude of 767,000 followers on Youtube, predicted that ADA’s price could go above $0.6 as the upgrade beckons.