Lark Davis Shared: $25,000 worth Ethereum is being burnt every minute.
For clarity, since the revamping of the Ethereum fee system on August 05, 2021 there is lot of focus on Ethereum burning. The changes due to EIP-1559 did excite investors; however, the asset continues to be volatile.
The “fee burn mechanism” limits the growth of the amount of Ether in Circulation.
Community Response: Can I ask you something? More ETH burning means more ETH minted out of thin air. Even more is being minted out of thin air every minute.
Why are Coins Burnt? When it is zero worth, there is manipulation of the value of token; when the token fails to calculate good value from the start. And, none of the three are a good reason to do it. So, Burning is not a great thing to do. Still people buy it and pay 90$ for a failed transaction. Crowd is stupid, we shall channel this stream of stupidity on healthier road.
You mean through Gas fee? And, where is that burnt ETH coming from? Network users paying extra high fees. I don’t see a reason to celebrate this.
25,000 every minute = 1 500 000 an hour, 36 000 000 a day, 1 080 000 000 a month, 12 960 000 000 a year! So, it is a good thing that ETH has unlimited supply, keep pumping dude.
So, the $25,000 I sold just got fucking burnt all up? Or did the 25k my buddy bought get burnt? Hope it was his.
I just think this ETH burning is a fallacy. That much value is being burned because it’s broken, not because it’s doing great. The burning is a bug and it should not be celebrated as a feature. Those who do not understand the risks are like: That is crazy and it makes me very bullish on Ethereum.
I don’t know what does the total amount of ETH burned mean? It means it fundamentally the burnt token has no value; therefore, it is being burned. This also means that the number of coins wasn’t thought through correctly when the protocol was being built. But what you really want to ask yourself is this: Is it more or less than the ETH amount which is being minted?
ETH does not have supply cap. It literally has unlimited supply, but ask a market cap expert if Cardano can go to $50 with ADA burning they will say it’s impossible – as they do not burn.
Ethereum was made to fail. Wait, we have a magic layer 2 solution coming right up, which is their kind of Federal Reserve 2.0. They got us from the beginning – Problem and Solution.
Lark, if they burnt just a little bit more tomorrow, would that make ETH more usable and affordable? Let’s start promoting alternatives to ETH, they may catch up someday. In the meantime, go and sell some of your ETH, begin the detachment hard as it may be.
And, what is Ethereum Maximum supply? I really would appreciate an answer Please: Unlimited Coin Supply. It doesn’t have a fixed supply. That sounds like the wow and all kinds of tricks to make the early whales rich. Gimmicks won’t make the chain work better.
EIP 1559 was meant more to increase gas fees than burning. Incentive for mining. No users will benefit. Waiting for ETH 2.0. This is $34B stuck in the project with no roadmap for 2.0. ETH will not be on the top 10 next Bitcoin halving. It is not scaling for mass adoption or even wealthy people. What does it mean? So, you complain about money printing but don’t mind when money is burnt. It’s the exact same thing. This is why Ethereum can never be HARD money.
Burning all of that ETH and it’s still going down. Probably because nobody wants to use a layer 2 bandaged limping network and ETH2.0 will take multiple years to remove insane gas fees.
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