One of the underlying themes of our last podcast session was about the cryptocurrencies that we invest in and how we have structured our portfolios. Ethereum (ETH) is a major part of my crypto portfolio and has been for several years now.
During the talk, @rollandthomas asked “Why Ethereum?” and followed up with “Will they ever fix their gas fee issues?”.
My response is the same that I have given many times over when asked about why I think ETH is a good crypto to invest in: "where are all of these projects being built?” 90% of these DeFi projects, new coins, etc. are all built on Ethereum. Even Chainlink (LINK) is an ERC20.
There are a lot of people who hate on Ethereum because of the scaling issues and incredibly high fees that we’re seeing lately. I also like to ask those people: “Why are the fees so high?”.
The fees are high because of usage. People are using the Ethereum platform at levels that we’ve never seen before. High fees, long tx times, etc. are issues that you only can get if you have a lot of users on your platform. In my mind, users and attention is where the majority of value lies.
Bitcoin is a staple in the crypto space. It’s our granddaddy store of value as I like to call it. We should look to BTC as a reliable way to not only preserve our wealth, but to actually outpace other investment classes over long time frames. When it comes to something like Ethereum, you have to change your mindset. It’s a platform for innovation. Not a platform for concrete value storage.
To me, investing in BTC is about value storage and reliable long-term price appreciation. Investing in ETH is about speculation and innovation. Two very different concepts.
As I mention in this clip: I believe that it’s just a matter of time until Ethereum releases ETH 2.0 and other scaling solutions (perhaps even interim solutions like EIP1559). Ethereum is packed with some of the smartest developers in the world and there is also no lack of funding when it comes to the foundation and the projects surrounding it.
Ethereum is a hub of innovation. While scaling is an issue today, it won’t necessarily be an issue tomorrow. The fact that it is an issue is actually quite bullish in my mind. It means that real people are making real transactions on it. There’s plenty of bot action and arbitrage mixed in there, but at the end of the day, Ethereum is the most used crypto platform in the entire world.
Full Podcast Episode: https://leofinance.io/hive-167922/@khaleelkazi/perspixe
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▶️ 3Speak
Posted Using LeoFinance
The fees are too high at the moment, it's a barrier for a mass adoption.
I understand that the fees represent the cost of keeping the network going. But it is just obvious and has been since the last crypto bull run that a transactional system can not be built on proof of work crypto! Here I am typing this out on a system that doesn't have the computation costs for a reason because hitting reply shouldn't cost me $10!
Well ETH may be the birthplace of the DE-FI craze but it won't be the only place that has it, I am pretty sure BNB chain, EOS and TRON will copy ETH as they always do and try to push down costs and grab users. I think that ETH 2 and shading will help make it cheaper but there's a limit to how cheap you can go without obliterating incentive to keep the network decentralised
I think that there's also side chains that will live ontop of ETH, I saw things like MATIC and I'm sure there will be ways to wrap ETH and BTC into side chains or other chains for more mircotrades and once you done move onto main chain and pay your on chain fee
This DE-FI craze has got a few rounds to go I am sure of it
Love seeing LeoFinance teaser on Twitter
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I do think that #ethereum would continue to appreciate along with bitcoin simply because both will not only get scarce but for Ethereum the innovation and its popularity would be the factor as well. @khaleelkazi
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