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The ETHPow Narrative
So what's all this fuss about ETHPow.
The Ethereum blockchain is going through The Merge and that's a whole topic by itself. The main thing about The Merge is that it changes Ethereum from a Proof of Work (POW) blockchain that requires mining to validate blocks to a Proof of Stake (POS) blockchain that requires staking to validate blocks.
The Ethereum Merge is expected to happen in September of 2022 which is in a few weeks from now. If the Merge happens successfully, a user of the eth blockchain shouldn't notice anything different and all protocols on the chain should work as per usual. However, if the merge ends up failing and the new POS chain ends up with a issue some people claim that the current POW ETH will continue as ETH1 or ETHPOW and it will still acquire value (something that is similar to ETC, Ethereum Classic). One the people who first popularised this idea through a series of tweets and polls was Galois Capital which is a a crypto trading firm that is most well known for their huge bet against $Luna.
Galois Capital then proceeds to tweet a bunch of other stuff, ETH maxis get involved, devs start tweeting their opinions, Vitalik starts tweeting about stuff, miners, exchanges, our favourite billionaire justin sun gets involved with a flex about owning a million ether etc etc.
Anyways, the real question about this situation is how do we profit from this.
The obvious answer is through the airdrop of ETH1 tokens to anyone who holds ETH but that probably isn't meaningful for most people who don't hold a sizeable eth position.
The true games will be on chain as every ERC 20, DeFi Protocol, Meme coin, NFT, stablecoin and more will duplicated. I would assume real value goes to ETH2/ETH POS but there might be projects and founders that for some reason chose to focus on ETH1 due to their beliefs.
Thus, there would be an opportunity to play the news and capture upside by converting ETH2 tokens into ETH1. It will also be interesting to see what exchanges do with regards to compatibility.
Also if for example ETH1 POW is worth 1 % of ETH2 POS, does that mean ETH1 POW bored apes are worth 1% of ETH2 POS bored apes? Can you capture the difference? What if Don the Bored Ape influencer decides to sell all his ETH2 bored apes for ETH1 bored apes? Does Don's influence pump the cheaper ETH1 bored apes by 500% an hour after his tweet? Does a ETH1 token follow exactly the price increases on ETH2? If Elon tweeted about Shiba and it pumps 100% on ETH2, does it pump by 1000% on ETH1 due to lesser liquidity?
Also I am sure that there will be speculative new coins launched exclusively on ETH1 to capture the hype and attention and new DEXES and ETH1 native stablecoins by companies to profit off of this speculation.
Overall, its basically duplicating the Ethereum casino with a bunch of chaos and hype and speculation.
Whatever happens with the Merge whether it's successful or not, I am pretty sure there are people who are going to fork the Ethereum blockchain and call it ETH1 with POW and there's going to be many games to play. See you on the (POW) chain.