Ethereum's success is also its doom
Ethereum gas

Ethereum's success is also its doom

By Al27x | ETH is dead. Long live ETH! | 15 Feb 2021


Nobody buys a cryptocurrency hoping that the price stays low. Thats not why we're in this market is it? Ethereum has never before seen better days than it is right now with prices hitting new all time thighs (ok fine.. highs). I think we set a new record today actually and there can be no doubt that $2000 is a guaranteed conclusion very very very soon. But as the first smart contracting blockchain this price increase and greater utilisation of the blockchain is going to kill it's main purpose:

With Ethereum's incredibly slow transactions per second (TxPS) and gas fees being used to jump the queue there is no doubt that the higher the price of Ethereum goes, the less usable the platform becomes for smart contracting, and also for the ERC20 tokens running on it. DeFi transactions become stupidly expensive and the simple truth is that Ethereum's adoption success will kill it as the smart contracting platform of choice in the short to medium term. Yes, ETH 2.0 (technically 3.0) is coming in a few years and we might see a difference that makes sense to improving the utilisation. But I doubt it. 

Do you think differently? 

And yet, despite the proposals and protocol changes being considered for Ethereum that I doubt will deliver great results, I am super bullish about the future of Ethereum, but I'll save that for another post. 

Cheers

 

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Al27x
Al27x

Cryptonoob and loving it.


ETH is dead. Long live ETH!
ETH is dead. Long live ETH!

The Ethereum network is killing itself with success; the higher the coin price rises, the more expensive the network becomes to use. And utility is what creates value... or is it?

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