driver’s of ether’s price after switching from proof of work to proof of stake model. I do not have a technical background, and despite spending significant time research this question am still at a loss. When I learned about ethereum’s potential beyond just a cryptocurrency I bought in (lucky for me before these major price spikes). My question/s is 1. After the switch to proof of stake occurs, what will be the drivers of ether’s price, and do we have a sense of what will happen to those of us holding ether at that time? I apologize in advance if my question is basic or something we all want to know but there is no answer currently.


    With PoS Ethereum become more scalable as this algorithm is more efficient than PoW. Plus 51% attack will be much less attractive for an attacker. These 2 are among the strong drivers for Ether price. Put aside of course possible hiccups in PoS implementation.
    From what I can gather from my current research, PoS will obviously allow anyone with ETH to mine transaction blocks with a reward based on how much ETH they own. Furthermore, the price of ETH and other crypto is directly correlated to electricity prices and this affects how much money it costs to “mint” a new currency. PoS will greatly reduce the correlation between the currencies and electricity, because people will no longer be able to mint new currency. In a PoW system new currency is minted with each transaction block mined, in PoS there is a limited number of currency in cirrculation. So, without the need for electricity sucking supercomputers to solve algorithims in order to create new transaction blocks, the algorithims will instead be solved based on an economic-proof. This perhaps will drive the price of ETH up, while making mining rigs obsolete and effectivley capping the number of minted currency. As far as how this system vhange will affect ETH price, it is hard to say, and it really comes down to what the majority of speculators believe what will happen to the price when the change comes. If people think it will go down, it will go down, and vice versa.
    I appreciate you knowledge of the subject matter. I have some close friends suggesting that I get into ETH now. I am 70 yrs old and retired on a fixed income. I am somewhat risk tolerant, but not sure if there is still time to make money on this. Michael, what would you tell your grandmother to do if she needs to grow some money? I appreciate any advice that you might proffer.
    There are a few notable factors that should effect price:

    1) Lots of Ether will be locked up by people staking it. This should decrease available supply.

    2) Ether will at this point be, not only gas to power the network, but also a source of recurring revenue. This should increase demand.

    3) There will be no mining rewards, so the number of coins in circulation will stop increasing, and in fact will decrease slowly as some are inevitably lost. This makes Ether deflationary.

    Decreased supply + increased demand = higher value

    So in theory, if the PoS implementation goes smoothly (a big IF), price should increase.

    The downside from (1) is that when one of the big miners quited, the ethers will be liquidated and caused the price to temporarily drop. And the bigger the stakes the miner held, the bigger the drop in price. (Of course, the miner can keep the ethers for investment purpose too.)
    Only if miners are currently stockpiling their Ether. Given that the mining rewards are their sole source of revenue, doesn’t it seem likely the majority of miners are liquidating their Ether immediately anyway? What percentage of miners do you think are deferring immediate profit based on speculation of future Ether price? Maybe more than I think, but if that’s the case and they’re already betting heavily on the future price increase, I’m guessing they’ll continue to hold after PoS. Especially now that their Ether, which before was just sitting there, is now generating more revenue.
    The move from POW to POS clearly has these two characteristics :
    1 – At a short term, it is a risk. Since these is a big change in the block validation protocol, these is also a security risk. People who have bought ETH for speculative investment will probably want to realize their investment without taking risk that the price suddenly drop for security reason if a problem occurs during the move from POW to POS. This should make the ETH price drop
    2 – If the move is successfull, as it has already been stated, this will give the Ethereum blockchain more potential in terms of performance and even security. This should attract investors and people who want to build their business on a blockchain. This should increase the price.

    So my opinion is : price drop juste before the transition and increase again more than before the transition if it is successful.

    HI ,

    When ether changed to proof of stack mode , coin rate will be flexible but there will be zero loss for who are having ether coin at that time .
    I mean , User or coin holder no need to buy a coin earlier , just pick a ether coin when you want to transact some money to others .
    If you have coin earlier , you should spent money(coin) instead of buying a new coin .