What is this all about? An opinion about ETH blockchain gas prices

By Soneghet | SONEGUECKO | 22 Jan 2021


Holly hell, is there some light at the end of the tunnel?

I am actually gobsmacked.. Specially after reading some of the comments around, I can see that I’m not alone in this world.

I have to confess that I cannot hide my disappointment with the whole ETH/DeFi universe.

At the current moment, the costs of Ethereum blockchain transactions are making it absolutely unusable as a virtual currency for any type of actual commercial purpose.

I mean, at least, when I gained interest for the crypto world, I thought/believed, that it was the main purpose of crypto currencies: 'decentralised, or let’s say, not Central Bank regulated currency, that can be used to buy, sell, trade, borrow, lend, etc…'

All of that happening in a democratic universe where a lot more people would have a say on how the policies should run.

Oh, yeah off course, so it should not matter if the value of the transaction is 0.01 USD or a million dollars or it should not require a minimum amount for any negotiation. Eg... you go to a shop to buy some candy or a can of cola and the shopkeeper says: 'yeah it costs 0,50 cent, but the min purchase amount in this shop is 50 USD' :p

I have recently just discovered that, myself, like many other users are struggling with the same issue. In the last couple of years, I regularly make small value crypto transactions. Whether if it's to move in between different wallets, from and to exchange platforms or to simply make some basic online payments, donations and so on.

Well, after listening and reading a whole universe of advices out there, saying that you should keep a diversified portfolio, I started to invest in lots of AltCoins. So right now, I hold a bunch of small amounts in lots of different DeFi/ETH blockchain based coins.

Then it came the hard truth of the current moment we are living (AS IF THE WHOLE COVID CALAMITY WOULD NOT BE ENOUGH).

If I have 30USD worth of, let’s say, Compound (COMP), in my Coinbase wallet, right now, it can cost me 26USD worth of ETH mining fees just to transfer it back to the trading platform, which makes it absurdly impracticable to use any Ethereum blockchain as an actual currency. In fact, I have quite a few hundreds worth in small amounts like that, spread into different coins. Hell yeah, the market went really bullish the last couple of months. All those coins had a big increase in value. But what is all of that worth it if I cannot actually use it as purchase value? 

It simply leads me into the following reflection: 'All this talk I have been hearing in the last few years about crypto being a way of avoiding the greedy international financial system became pure bullshit'. Few days ago, I tried to use 3 USD worth of USDC to make a transfer to a friend so he could start his very first crypto wallet… It turned out that I needed to have almost 9 USD worth of Gwei in my wallet just to pay for the mining fees. AAAANNHH?

Not even the most greedy/fee charging/interest sucking/IwannaputinyourASS centralised economic system in the world would turn to that level.

In the end, it seems that it is all becoming the same, if not worst ‘I want to make money and dominate the world’ attitude of the centralised financial systems. I feel that sometimes there are a lot of beautifully written texts and speeches out there about DeFi/ETH blockchains, but in the practical world, that is a problem that could really push away people from adopting crypto as a main economic currency. 

Also, sometimes, I will hear the explanation: It has become clear that there is a massive overload in the mining network.

Off course, but I also believe that it's due to the fact that, in the past few years, the entire mining business became something like 'Grow Your Own Weed Farm At Home - spend shit lots of money in GPU processors and electricity and get rich by exploiting everybody that wants to make use of something that is supposed to be good and helpful to people'.

God help us and hopefully the whole ETH 2.0 can give us some hope... (Although, lately, I'm starting to get not so hopeful)

Well, what I also have been finding more and more is that, nowadays it’s actually becoming all about owning as much crypto of high increased value as possible, for the sake of building capital. All of this, instead of actually adopting the digital currency system as a way of making a more democratic and fair economic system. It's more like - 'F....k the people who don't have a minimum relevant amount of capital to invest and just wanted to adopt the crypto system as a way to get out of the abusive centralised economy'. 

So yeah… That was a big rant....

But no worries, even if this text sounds negative or somehow pessimistic, I'm still a huge fan of the cryto alternative. Although, lately I have been opting more and more to, cheap, open source and alternative options like TRX and so on. I really like some nice innovative ideas based on Nano network like the new Bitcoin Black (BCB) and my recent discovery -  Banano (F....k yeah I love these guys). 

Anyway, I want to finish this article by saying that this is my very first text in Publish0x.

I am far from being a Crypto experts or specialist. I only have a couple of years exploring and studying the theme. But lately I have been feeling this compelling urge to start sharing my experiences and opinions over what I believe could be one of the solutions for the economic inequality we live today.

Hope people enjoyed my fiery nagging and please, feel free to leave your feedback.

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