Ethereum $ 10000: No More Inflation

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Published Apr 3, 2021

Ethereum is going up day by day on its way to $ 10,000. That's what some say. I say Ethereum goes to "who knows".
For those of you who are new to the cryptocurrency market, a price increase of 10 -15 percent may not seem impressive. I say this because I assume that many have told you that cryptocurrencies can make millions from a few hundred dollars invested.
Ethereum is the second largest coin, after Bitcoin, and its price cannot move as fast as the price of, for example, Dogecoin.
The reason for the rise in price and such a good forecast for its future lies in the fact that the implementation of the new rules solves the biggest problems that Ethereum had. Ethereum switches to the Ethereum 2.0 protocol and implements the so-called EIP 1559, Ethereum Improvement Proposal.
One of the biggest problems Ethereum had was the transaction fee. The EIP 1559 will allow the average price to be significantly lower, which essentially means that Ethereum will be more attractive to new users.
Another problem was the frequent transaction delays for users who offered a lower price for the transaction. EIP-1559 should reduce transaction delays with the flexibility of variable-sized blocks, and the larger the block size, the faster the transaction.
The third problem was inflation. Ethereum has no cap and the emission of new coins has created inflation that is not attractive to many.
After this update, it is believed that Ethereum, through the process of burning coins, will even manage to become a deflationary cryptocurrency.
"Last year, an analysis of network transactions showed that EIP 1559 would have burned nearly 1 million Ether in 365 days. That’s equivalent to almost one percent of the entire network. "
Vitalik Buterin has said that if ETH2 and EIP-1559 were implemented at current transaction levels, the supply of ether would actually stop growing.
The price, at the time of recording this video, reached 2140 dollars.

https://medium.com/coinmonks/ether-is-becoming-a-deflationary-cryptocurrency-2d34ab62ff50#:~:text=Last%20year%2C%20an%20analysis%20of,a%20boon%20for%20Ether%20prices

Kategorien: ethereum Kryptowährung

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Ethereum $ 10000: No More Inflation

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