Will Bitcoin Really Go Into Terminal Decline After Ethereum Merge?

cryptonews.com:

As the long-awaited Ethereum Merge draws closer, one of the most interesting facts about 2022’s bear market is that ethereum (ETH) has outperformed bitcoin (BTC) along pretty much every timeframe. 

As of writing, ETH has risen more in the past 24 hours (6% vs 1%), in the past week (7% vs -2%), in the past month (-1.8% vs -13%), in the past 90 days (-8% vs -34%), and in the past year (-57.9% vs -61.5%). And with the Merge still on the horizon – and due on September 13-15 – it’s very likely that ethereum will outpace bitcoin even further in the next few weeks.

But does a short-term rally mean that ETH is going to overtake BTC for good, or even send it into a long-term decline? This largely depends on whether ethereum will truly become a deflationary cryptocurrency post-Merge, something which many observers dispute.

The latest update from Vitalik Buterin suggests that the Ethereum Merge will take place between September 13 and 15, with the Bellatrix upgrade -- the last before the Merge -- due later today. What this ultimately means is that Ethereum will become a proof-of-stake cryptocurrency, with validators confirming new blocks and transactions by staking ETH itself (rather than spending energy).

By extension, the shift to PoS also means that a significant percentage of ETH will be locked up in the new Beacon Chain’s smart contract. In fact, an impressive 13.398 million ETH is already locked up as of writing, with more likely to be staked once the Merge successfully takes place. 

13.389 million ETH is currently 11.13% of the overall circulating ethereum supply (of 120.4 million ETH). 

On top of this, the move to PoS also means an end to mining rewards, which will be replaced by smaller staking rewards. According to