A critically important event in the evolution of the crypto currency industry occurred early this morning. The Ethereum network completed its migration from a network supported by proof of work (PoW) consensus to one that will be validated by proof of stake (PoS). This major milestone will address a number of issues that have been raised surrounding PoW consensus validation.
The biggest benefit to completing this migration is the projected 99% reduction in energy consumption that occurs with PoW consensus validation. Concerns of ESG-focused investors will applaud this technical achievement both in terms of the benefits through energy conservation and in terms of the potential increased scalability to attract new developers to create innovative solutions on the ethereum network.
With the Ethereum merge now complete, we anticipate that the market will begin to look for the next catalyst for growth. We think there could be a number of winners but it’s unclear to us who will rise above. What is known is that this network upgrade was successful and the uncertainty around the merge is now behind us for ether and the many applications and protocols that are built on the Ethereum network.
Last week we published a series of blog posts that highlight the benefits of building a diversified portfolio of cryptocurrencies. Investment strategies that employ a diversified exposure, like the Arxnovum Multi Crypto Index Fund, help take the guesswork out of trying to pick a winner.
- September 5, 2022 – Cryptocurrency investing is more than bitcoin
- September 6, 2022 – The benefits of diversifying cryptocurrency exposure
- September 7, 2022 – Addressing concentration of cryptocurrency market
- September 8, 2022 – Effective risk management of cryptocurrency
- September 9, 2022 – Diversify your cryptocurrency allocation
- Bonus: September 7, 2022 – Portfolio Rebalance – September 2022
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