Is the Ethereum price correlated to its usage? Openly critical onlookers have to state that all-time high usage by scam projects might not drive up the price. Some say it will rise soon and that ETH is ready. There is a lot of query about from where the usage is coming from?
Someone tried to provide a clarification which read like, “The ETH(Gas) paid for the fees go back to the miners that sells that amount, so it’s balanced. The price to go organically up needs an imbalance. Burning the fees with the EIP 1559, will create this imbalance. The price can still go up other reasons e.g., demand for borrowing DAI.”
Some project a price momentum during the end of summer. There are many who are betting against Ethereum. This is probably because they feel that the more it grow, the less useful and insecure it is becoming. They opine the decentralization is slowly disappearing. Other reasons might be because some opine that ETH is congested and that what it can probably achieve is what it can achieve right now. That might be the reason for a not so bullish sign.
Sydney Ifergan, the crypto expert, tweeted: “Whether Ethereum (ETH) has value preservation or not is something for which an explanation should be sought from Vitalik himself.”
Some express that there will be a point in time where users will abandon Bitcoin for Ethereum (ETH). Ethereum has been around for long and is not ready enough for prime time. It is important to see signs of really new users buying more tokens and not more buys from who are doing more with what they already have.
Positive opinions like Ethereum are that “ETH is the Western Union’s worse nightmare” also exists. For Ethereum to be valuable, it need not outperform Bitcoin. The opinions are different from different users, which are mostly based on their experience and individual perceptions.
Opinions apart, the strength of the Protocol provides for scarcity mechanisms and fair games. Ryan Sean Adams and David Hoffman, under the title, “How in-game mechanisms make ETH price go up,” have explored the concept well in their Bankless podcast.
Outside observers might not want to misconstrue ideals on ETH; rather, they need to arrive at decisions by following legitimate arguments to develop opinions about the ETH protocol and the ecosystem. The podcast very clearly clarifies the three pillars of ETH scarcity.
A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies. Appreciate the work? Send a tip to: 0x75395Ea9a42d2742E8d0C798068DeF3590C5Faa5
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