@Pantera
edited
Ethereum Has No Place In the Metaverse
Ethereum is a disaster for Dapps, blockchain games, and the Metaverse. It still works for large investments in DeFi and outrageous NFT valuation, but that's about everything there is today in Ethereum.
*Source* https://miro.medium.com/max/1400/1*blPnUkJsK6sbc6K2jpAeKQ.png Fees are consistently unreasonably high and ETH miners extract a huge part of the value created within this blockchain. Proof of Work (PoW) is equally important. And the move to PoS and staking can also add to a serious decline in Ethereum userbase, adoption, and expansion. The latest upgrades introducing an ETH burning process were simply last-minute patches that applied as a mechanism to support price but had nothing to do with utility. Developments of “Metaverse” applications require efficient networks with low fees and lightning speed to accommodate millions (if not billions) of daily micro-transactions. It is illogical to invest long-term in any Ethereum driven Metaverse project.
Dysfunctional Networks will Lose Appeal to Investors This bull run is purely institutional, the retail investors joined in 2021 with Robinhood but the main volumes in crypto investments came from Grayscale, Tesla, Microstrategy, Square, some top funds, and more institutions that invested in various cryptocurrencies. Grayscale and other institutional investors also bought huge amounts of ETH, reaching the valuation of Grayscale ETH reserves today $15 Billion.
*Source* https://twitter.com/Grayscale/status/1458555933840318468 Ethereum suffers from high fees even when the network is not congested. The fact that as price rises, fees also increase is a vast issue of crippled networks. The Dot-com bubble had a lot of similarities with stocks reaching unreasonable valuations since most companies offered almost nothing of real long-term value. Ethereum offers the bare minimum and extracts the maximum value from fees. We have networks working today, scaling efficiently to meet universal demand. Ethereum “plans” to scale with sharding in the next 5 years, and judging by Ethereum delays in developments so far, I wouldn’t be surprised if this development finishes in 10 years or more. If Ethereum is still relevant in 5 years. For Bitcoin (BTC), Ethereum’s downfall will be a perfect victory. The BTC advocates and narratives explain that all other cryptocurrencies are scams or fake or a clone of Bitcoin. Yet, BTC is equally crippled as Ethereum. Second layer solutions in BTC can only bring centralization and, as we observe with the enforcement of LN in El Salvador, it doesn’t seem to be implemented well. DeFi is a unique technology that will reach higher recognition and adoption levels, but currently, in Ethereum, it is in a difficult state as well.
*Source* https://twitter.com/zhusu/status/1461101041697579016 High fees will be destructive for Ethereum. There is a possibility it may lose its status and become obsolete as better alternatives are already there. Defi and NFTs are still in a raw state within Ethereum, but expanding and finding use cases outside of a crippling network. Other blockchains are offering better terms for investors, collectors, artists, and traders. Fees have grown into a systemic risk for Ethereum. The ETH community takes no action to solve this issue, as the short-term greed is in control of the narrative and any serious development discussion. The cryptocurrency industry has a wrong approach in re-investing its huge profits. Top exchanges, Digital Currency Group, Galaxy Investments, Pantera Capital, all claim to have analysts performing research but it seems they all just employ juvenile and clueless amateurs, having no single clue what they are doing but following personal preferences instead.
In Conclusion - "Number go Up"
*Source* https://www.reddit.com/r/ethtrader/comments/dm0ghf/number_go_up_soon/ Price is not an argument; get over it. Every time I write about the crippled blockchain of BTC and Ethereum, I keep finding comments reacting angrily and ALWAYS make a price argument. *"****But, the price goes up****!"* *"****But Ethereum*** ***keeps pushing new heights*** ***and being the dominant blockchain!****"* Seriously is this a constructive counterargument? How do you expect to be treated by anyone when your whole point is about the price? Price does not reflect the critical problems Ethereum has. For all the efficiency issues of Ethereum and the inaction of its development team to upgrade and create a robust network, the argument to counter a crippling network is the price is pushing to new heights? I've been an Ethereum fan between 2017-2020, following all developments and kept buying the dips that were damaging me financially for years. Eventually, I profited from this investment, but by the end of 2020, I was certain Ethereum had nothing else to offer. Maybe, Ethereum will grow into a network offering services to top financial institutions and accredited investors. As it always did, Ethereum moved forward, although, currently, it has evolved into a monstrous network without further potential. The digital era will demand decentralized, efficient, and robust secure networks. If Ethereum becomes efficient one day again, maybe in five years it can compete under different circumstances. Decentralization as we've correctly often been told is the vehicle to our freedom. Having to trust nobody else but the code itself is a move forward for transparent finance. **Every transaction has to be instant, though.** More than a split of a second instantly puts cryptocurrency networks in a worse condition than banking. Fees, if possible, should be zero. Just a fraction of a penny does the trick today, but sadly many are not still convinced on the possibilities of the digital economy. The digital economy today is not even 1% of what it will become in the next 25 years. There are visionaries still among us in crypto, and understand how the future will unfold. The rest can just keep looking for short-term potential and pay $250 in Ethereum fees rather than admitting they were wrong.
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14 comments
Ethereum fees can be really expensive, I don't consider it money hence mass adoption can never take place especially not in the world of gaming. There are other alternatives to Ethereum and with lower fees hence it may lose value with time. People don't understand that it's not about the price, whether it constant hit new ATH or not, the major concern is the "use case" - thus begging the question of "what does Ethereum have to offer". Imagine doing a $100 transaction and and having to pay about $200 as transaction fee; completely defeats the purpose of the said transaction.
Wanted to claim a free @ArtistByron NFT on Opensea ... gwei was $228 lol
I used to rate Ethereum as the network of the future, but I have since changed my assessment. Ethereum, like BTC, has no future in the long term. Sooner or later, users will turn away from it. I have sold my ETH.
I planned to buy some ETH few months back. But seeing how it has come to follow the step of BTC with massive fees, it was a good decision to delay the plan.
I think they should change the name to Petroleum. Because the gas fees are relatively as high as the current gas prices. I'm not that active in Publish0x. But I remember Ethereum was part of my earnings before. But lately, I no longer see it on my dashboard. Only Ampleforth and Farm. and I don't know what to do with those as well.
I have barely used Publish0x and left it for many reasons. I don't know if I have earned more than $2 there, but I would not try to move any Ethereum tokens. I don't know a lot about Ampleforth or Farm either. Ampleforth is strange having some kind of rebalance that needs some time to study, but looks dangerous as an investment. Maybe I will look again. Although, about Publish0x, it is just terrible that it pays only $1-2 to the top publishers. Clearly they could pay a lot more since they have advertisements on their website, even some intrussive bypassing ad-blockers. They could pay more, but this is just greed.
AMPL is doing a daily rebase. If the value grows you will have less AMPL, if value drops you will have more. Its intended as a method of payment against volatility
Ethereum was removed from the tipping system but can be still earned from writing competitions
I suppose it's because of the gas fees? Anyways, I do learn from some of the articles there. I might as well do some research about AMP end Farm.
Everything you’ve written is what I e felt for the past year or so since I’ve been in crypto through blogging. ETH is a complete joke and Bitcoin is only marginally better. If you’re going to replace a system you have to start with like-for-like as the bear MINIMUM specification. ETH and BTC do not. They are not fast and there fees would have banks cumming in their pants if they could implement them. I don’t understand why people can’t get it into their heads that cryptocurrencies as they are will not reach critical mass adoption due to their complex nature and ridiculous fee structures.
You work in a tech giant lowededwookie, I was sure you will understand. Basically, it is just logic. Simply, banks will run this show since most investments today in crypto are in memes like dog-coins and clogged networks.
I used to work in tech. I deliver snail mail now. But you're right, I do understand. Crypto is a great idea but I think what will happen is each individual government will replace cash with its own digital currency that they can fully control. The idea that ETH, BTC, even BCH can usurp this is just wishful thinking from people who want the benefits that come from being a citizen while doing whatever they feel like they want. It will fail ultimately. That's why I moved my crypto over to AAPL stocks. I figured I might as well make my earned cryptos do something beneficial for me.
I have 26AMPL in my wallet and it says that in order to convert it into the MATIC or USDT I have to atleast spending same amount as in Ethereum fees. It's really sad to build anything on this blockchain. Trying to earn through any means on this blockchain is washed out unless you have transaction of around 500 USD or more. I don't see Ethereum for metaverse. It's either BCH or Solana whichever strikes first and gets people.
really the world of crypto is so changing that what you say is possible, that it will disappear in 10 years, I really believe that success will be hand in hand with the companies that accept it