Why Ethereum?

[El_Mero_Mero]

When it comes to cryptocurrency, Bitcoin has been the industry leader for a while.

Sometimes we have other coins making surges.

Ethereum seems to always be in the top 5 though, and most often it is the #2 coin.

I don't really know about cryptocurrency and I know my question would get lost in the main crypto thread.

If you can ELI5 (Explain it like I'm five), what makes Ethereum the #2 coin? What makes it special? Why do people think it will grow in value?

With DogeCoin and other coins, I know a lot of people were just doing quick flips there and putting that profit into Bitcoin.

Would people take Ethereum profit and put it into Bitcoin, or would they just keep it in Ethereum? If they decide to keep it in Ethereum, my question is "Why"? What makes it so special?



@idontposthereanymore @BillyTheWho @thernbroom @Leasy @klientel @the bossman @heisenburrr @((ReFleXioN)) EteRNaL @NaijaProdigy Redux @RARI_Godwind @Crude Abolitionist

 

[Ish Gibor]

Ethereum is going to be replaced by blockchains with less gas (fee) requirements. Even Eth 2.0 is still somewhat relative expensive. The solution has to be less harshness on the ecology and greenhouse effect, which indirectly and directly benefits economic and other technological solutions.

Bitcoin used to be what Eth became as an exchange, but it’s even more expensive in usage. Bitcoin has become the scarcity commodity, which is expensive in transactions and it doesn’t have solutions for other problems in payloads.

So the strength is within the use cases *AAS (Blockchain As A Service).

Here are solution based examples what Blockchain technology can do for infrastructure, distribution and logistics.

 

[El_Mero_Mero]

Everything that you said is definitely more than I understand, but I'm going to read it carefully and watch the videos that you posted. Thanks for your opinion.

 

[Ish Gibor]

Everything that you said is definitely more than I understand, but I'm going to read it carefully and watch the videos that you posted. Thanks for your opinion.

Follow this:

 

[that guy]

Bitcoin is designed to be digital gold, nothing else. You can’t do anything with Bitcoin but store it. You can’t build applications on top of it. Ethereum and solidity is a protocol suite and programing language just like the internet is. It provides a framework to build applications on just like the internet. Knowing what you know about the internet and how many applications are built on the internet, now imagine if you could invest in the internet in the 90’s. How rich would you be? That’s what ethereum will be. Ethereum will surpass Bitcoin. A lot of the top crypto currencies are built on top of ethereum. Bitcoin will be tokenized and wrapped and placed on the ethereum network.

In a nutshell, in the future you won’t go to a bank to handle your financing needs. Everything will be online. Think about it now, how often do you go to the bank compared to your grandparents? The future will be decentralized finance where you deal with smart contracts instead of applying for a bank loan. You can even get a bank account with routing and account number all online without ever stepping into a bank. The applications that allow you to do your online banking will be built on top of ethereum.

 

[that guy]

Ethereum will not be replaced by other block chains like the previous poster stated. There’s no other blockchain that can do what ethereum can do. Remember, go onto a website like coin codex and see how many of the top cryptocurrencies are built on top of ethereum. This is taking market cap away from ethereum. The gas fees are high because the technology is new just like how cell phones TVs computers and other technology used to be slow and expensive. But just like other technology, over time the process will become more efficient and cost effective.

 

[that guy]

Comparing Bitcoin to ethereum is like comparing gold to apple. You buy gold because of its ability to retain value. Nothing else. You buy apple because it’s a technology company that’s going to improve and innovate over time making the company more and more valuable.

Think about this, gold has been mined and used as money for thousands and thousands of years, it has a market cap of about 11 trillion. That means all the gold in existence that has been pulled from the earth is worth 11 trillion. Facebook, a technology company that just went public 9 years ago, is already worth 700 billion. Bitcoin, created in 2009 is already worth 1 trillion. Technology is much much more valuable. The same rules apply in the digital world. Bitcoin is digital gold. That’s why they call the process of adding blocks to the blockchain “mining” you want to invest in the technology long term and not the gold.

If I were you I would put money a percentage of my savings into Bitcoin because it will only keep going up because of its anti inflationary properties especially times like these when the fed is printing money nonstop.
Also, because Bitcoin has the first user effect. Similar to how there are other search engines available but everyone uses google or how there are other tube sites available but everyone uses YouTube. Bitcoin is the most recognized and trusted crypto so that’s where most people will aggregate their funds.

When you understand the blockchain technology and decentralized finance, you will understand that ethereum is the future.

 

[that guy]

Delete

 

[Ish Gibor]

Ethereum will not be replaced by other block chains like the previous poster stated. There’s no other blockchain that can do what ethereum can do. Remember, go onto a website like coin codex and see how many of the top cryptocurrencies are built on top of ethereum. This is taking market cap away from ethereum. The gas fees are high because the technology is new just like how cell phones TVs computers and other technology used to be slow and expensive. But just like other technology, over time the process will become more efficient and cost effective.

As we speak there are projects underway that are more cost efficient than Ethereum. We yet have to see Eth 2.0 will do. When I said replacement, it was a bit exaggerated indeed.

Top 20 Alternatives & Competitors to Ethereum

Top 10 Blockchain Platforms to Explore in 2020 | EM360

Secondly, if Ethereum doesn't solve the high fees, people will look for alternatives, like some mentioned above. In term of the applied technology,"smart contract functionality", they are still ahead. However this can be implemented in other Blockchains as well. The most important thing is cost efficiency. This is what every complex strives managing. As we are posting this costs a lot of energy which translates into bills, but also into waste. Not just waste of money, Kwh, but also the over longterm greenhouse effect, which is toxic waste produced by these devices. And as the network becomes larger with IoT-devices it will take a bigger tole. I guess you are familiar with the Green New Deal?

"As of 05:45 UTC (12:45 a.m. ET), February 4, 2021, the average and median transaction fee on Ethereum reached as high as $23.43 and $11.77, respectively, data from Blockchair indicates."
Ethereum Transaction Fees Hit Record Highs as Ether, DeFi Coins Soar- Yahoo

"Fees for transacting on the Ethereum network breached previous records, passing above $20 for the first time Thursday."

Ethereum Transaction Fees Hit Record Highs as Ether, DeFi Coins Soar - CoinDesk

I was listening to this show last night and the guy The Black Ambassador made some solid arguments, to what Blockchain technology means to Black people now and in the future. He explains what the problem with many Black people is in Blockchain technology, how Black people don't think solution based and just run behind anything, last. And this is how we end up with people saying that Ethereum cannot and will never be replaced. I remember the time when Bill Gates was the richest man on earth and everybody including myself said, nobody can excel (no pun intended) that.

 

[Ish Gibor]

Bitcoin is designed to be digital gold, nothing else. You can’t do anything with Bitcoin but store it. You can’t build applications on top of it. Ethereum and solidity is a protocol suite and programing language just like the internet is. It provides a framework to build applications on just like the internet. Knowing what you know about the internet and how many applications are built on the internet, now imagine if you could invest in the internet in the 90’s. How rich would you be? That’s what ethereum will be. Ethereum will surpass Bitcoin. A lot of the top crypto currencies are built on top of ethereum. Bitcoin will be tokenized and wrapped and placed on the ethereum network.

In a nutshell, in the future you won’t go to a bank to handle your financing needs. Everything will be online. Think about it now, how often do you go to the bank compared to your grandparents? The future will be decentralized finance where you deal with smart contracts instead of applying for a bank loan. You can even get a bank account with routing and account number all online without ever stepping into a bank. The applications that allow you to do your online banking will be built on top of ethereum.

Bitcoin is designed to disrupted the financial system as we know it. What gives it fidelity is the potential scarcity. Problems with these older algorithms is the cost per Block in Length and Height. Or simple put, the size. How much does it cost to mine one Bitcoin?

Bitcoin’s energy consumption is underestimated: A market dynamics approach - ScienceDirect

"Cambridge researchers say it consumes around 121.36 terawatt-hours (TWh) a year - and is unlikely to fall unless the value of the currency slumps."

Bitcoin consumes 'more electricity than Argentina'

However, the protocol is based on SHA (Secure Hash Algorithm), which was developed by the alphabet boys.

https://cryptome.org/nsa-sha.htm

SHA-2 - Google Patents

SHA256 - Google Patents

Hoai Luan Pham et al., August 10, 2020, Double SHA-256 Hardware Architecture With Compact Message Expander for Bitcoin Mining, IEEE Xplore

 

[Ish Gibor]

Comparing Bitcoin to ethereum is like comparing gold to apple. You buy gold because of its ability to retain value. Nothing else. You buy apple because it’s a technology company that’s going to improve and innovate over time making the company more and more valuable.

Think about this, gold has been mined and used as money for thousands and thousands of years, it has a market cap of about 11 trillion. That means all the gold in existence that has been pulled from the earth is worth 11 trillion. Facebook, a technology company that just went public 9 years ago, is already worth 700 billion. Bitcoin, created in 2009 is already worth 1 trillion. Technology is much much more valuable. The same rules apply in the digital world. Bitcoin is digital gold. That’s why they call the process of adding blocks to the blockchain “mining” you want to invest in the technology long term and not the gold.

If I were you I would put money a percentage of my savings into Bitcoin because it will only keep going up because of its anti inflationary properties especially times like these when the fed is printing money nonstop.
Also, because Bitcoin has the first user effect. Similar to how there are other search engines available but everyone uses google or how there are other tube sites available but everyone uses YouTube. Bitcoin is the most recognized and trusted crypto so that’s where most people will aggregate their funds.

When you understand the blockchain technology and decentralized finance, you will understand that ethereum is the future.

Ethereum 2.0 Includes Major Changes That Could End Bitcoin's Blockchain Dominance | IEEE Computer Society

How DeFi Disrupts Financial Services | Blockchain Capital

 

[Ish Gibor]

The announcement of Eth. when is was under 1 dollar.

 

[El_Mero_Mero]

Damn, this is alot to analyze. Appreciate y'all taking the time to contribute to the thread.

 

[Ish Gibor]

Damn, this is alot to analyze. Appreciate y'all taking the time to contribute to the thread.

Most of what was exchanged was technical.

Anyway, the patent holder of the DeFi token explains what it can do for decentralized finances etc.




This is a simplified explanation of the DeFi concept.

 

[Ish Gibor]

Damn, this is alot to analyze. Appreciate y'all taking the time to contribute to the thread.

Here is some more information on the implications with Blockchain and regulations when it comes to finances.



Here is the man himself, being interviewed.