Ethereum: Why ETH is So Valuable! My Predictions!! ๐Ÿ”ฎ

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๐Ÿ“บ Useful Vids ๐Ÿ“บ

ETH Vid Jan ๐Ÿ‘‰ https://www.youtube.com/watch?v=NLr2HMz_tvg
ETH Scaling ๐Ÿ‘‰ https://www.youtube.com/watch?v=bz0y5zUZBaE
Polygon Video ๐Ÿ‘‰ https://www.youtube.com/watch?v=34wQaNSvi10

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– TIMESTAMPS –
0:00 Intro
2:25 Why ETH Has Value
6:45 DeFi Demand
8:23 Stablecoin Demand
11:28 NFTs
14:12 ETH L2 Scaling
17:13 EIP 1559 & PoS
20:05 Price Potential
23:54 Conclusion

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โ›“๏ธ ๐Ÿ”— Useful Links ๐Ÿ”— โ›“๏ธ

โ–บ Proof of Stake Explained: https://ethereum.org/en/developers/docs/consensus-mechanisms/pos/
โ–บ Fat Protocol: https://www.usv.com/writing/2016/08/fat-protocols/
โ–บ Metcalfe’s Law: https://seekingalpha.com/article/4399431-ethereum-to-repeat-bitcoins-move-to-20k-given-metcalfs-law
โ–บ Merge Vitalik: https://notes.ethereum.org/@vbuterin/B1mUf6DXO
โ–บ Optimism Delay: https://www.theblockcrypto.com/post/99511/ethereum-scaling-solution-optimism-delays-mainnet-launch-estimates-july
โ–บ ETH 2.0 Deposits: https://duneanalytics.com/hagaetc/eth2-0-deposits
โ–บ QuickSwap: https://info.quickswap.exchange/

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๐Ÿ” Fat Protocol ๐Ÿ”

Perhaps one of the most relevant that I have seen is that of the “Fat Protocol” theory

This was an investment model that was first popularised by Joel Monegro over at Union Square Ventures – one of the most well known VCs in the world

It is based on the notion that Ethereum has built a protocol that is most able to capture value – hence the term “Fat”

This is compared to some of the established protocols out there like TCPIP which are “thin”. All of the value in these protocols is concentrated in the application layer. There is no value that accrues to the protocol layer. This is different in the case of Ethereum where the network benefits from dApp use

You also have Metcalfe’s law that dictates the value of a network is proportional to the square of users on it. So, it is essentially an exponential functoin of all the users on the network

๐Ÿ“ˆ ETH Demand ๐Ÿ“ˆ

Recently, Ethereum network demand has been surging. You only need take a look at the total number of active addresses on the Ethereum network. This is at an all time high at over 580,000 addresses

This is being drive by

– Defi: Thousands of dApps with over 50 billion in TVL
– Stablecoin Demand: Billions has been issued on the Ethereum Network
– NFTs: These are all minted on the Ethereum network and requries gas in order to do it.

All of these factors add to the argument of ETH value according to the Fat protocol as well as Metcalfe’s law.

๐Ÿ“ˆ Layer 2 Scaling ๐Ÿ“ˆ

Given that there was a delay in the Optimism scaling solution there has been some concerns about ETH scaling. However, there are a number of other really important layer 2 solutions out there.

Polygon have developed a child chain architecture that leverages zkRollups and Optimistic rollups. Polygon childchains will be able to leverage the security, robustness, and network effects of the Ethereum blockchain.

Given that this is layer 2 it means that scaling can be done off of the main chain. As more Etheruem dApps start to integrate with Polygon it will mean less bloat on the main network.

๐Ÿ‡ฌ๐Ÿ‡ง EIP 1559 & Proof of Stake ๐Ÿ‡ฌ๐Ÿ‡ง

This is a change in the way that the Ethereum Gas fee auction market works. It will see the implementation of a standardised “base fee” and an optional Tip that can be paid to speed up transactions.

Now, while EIP-1559 may not nessecarily reduce gas fees per se, it will make them more *predictable* and easier to use. You won’t need to adjust gas limits based on current market conditions as the Base fee will be dynamically adjusted.

Given that Miners are not a fan of EIP1559, they threatened to stage rebellion. This led to efforts by some in the ETH community to to hurry along the Proof of Stake merge. This would happen in Phase 1 which would mean that Ethereum could scale much quicker.

๐Ÿ’ธ Price Potential ๐Ÿ’ธ

There are many factors that are price positive for ETH. These include both demand and supply factors:

– Increasing utility demand
– Increasing invesment demand
– Decreasing Exchange Supply
– More ETH in Defi Smart Contracts
– More ETH in the ETH 2.0 deposit contract
– potential impact of Fee burns

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๐Ÿ“œ Disclaimer ๐Ÿ“œ

The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading Forex, cryptocurrencies and CFDs poses considerable risk of loss. The speaker does not guarantee any particular outcome.

#Ethereum #ETH #crypto #NFT #EIP1559 #trading #defi

Comments

Coin Bureau says:

Watch scammers in the comments Guys! Hope the video helps you see the raw value in ETH! Don't forget that you can get content you are not getting here on my social accounts https://guy.coinbureau.com/socials/

STONKS wave says:

I'll tell you one thing, I never think of the playback speed but at the 1 minute mark my brain went "put that sh*t on 1.5 for the love of God!" I was proud of it

Eduardo Chavez says:

Can please you make a video about Compound?

Nicky Weav says:

Really good video

Christian Miller says:

@Coin Bureau Do you think Cardano rolling out smart contracts will effect to value of Ethereum long term?

Klairee Berry Astrology says:

Might have to get that shirt

Michael Eworldone says:

USD has low value. Itโ€™s will bring the whole market to a zero sum game of constant losses. ๐Ÿ™„ Visa can take a hike. Terra has stable-coins.. NFT are on multiple platforms. ETH is a private equity trap for new users. Centralized finance to be used with spare caution.

Game testing lab says:

The problem with Eth is thatโ€™s not decentralized. Itโ€™s controlled by its developers. They set rules and later on down the road they come with new proposals and change the way how the coin functions and behaves. You have a controlled rigged coins with unpredictable set of rules. And you want me to trust to that coin? The very concept of Bitcoin itโ€™s neutrality which is maintained by no one having control on it. If you want a fair game you want that referee canโ€™t be controlled or influenced by no team. If you want a fair game you want to be sure that game rules are crystal clear and canโ€™t be changed in the middle of the game. Another thing itโ€™s since no one canโ€™t change or doesnโ€™t have control on it you canโ€™t stop the coin by detaining people that had control. Since Eth is controlled and manipulated by a team government any time can force the team to shut down Eth. Those characteristics gives the value to Bitcoin as hedge against fiat currency. Those flaws make Eth a shit coin and thatโ€™s why everyone should be careful deciding to throw the money on Eth. Strange that Coin Bureau fails to notice this deep flaws and to mention those! First video Iโ€™m choosing thumbs down and for a reason! This video itโ€™s at best case misleading!

Michael Eworldone says:

ETH has value to ETH whales. ETH tokens are being devalued on the ETH network for ETH. Centralized convenience. Once developers get passed this zero sum game of crippling ETH for value and greed. Releasing tokens on multiple platforms will make crypto better and inherently bring value to shortsightedness creating multiple positive outcomes.

Janko Akovic says:

Do you think etherium classic and other etherium tokens will also go up like etherium?

Kevin Tempel says:

Ethereum, Cardano, SafeMoon have so much potential.

cristian stefan says:

Why ETH is so valuable
ELROND EGLD. Hold my beer!!

Connor Crotty says:

Guy with the hot intro rhymes!!!

J says:

Is Cardano genuine competitor to Etherium? It sounds like it could help resolve that bloating issue. Sounds,like ut could eventually cause it constipation before eventually combusting.

FreeThink11 says:

Eth to $10k by aug

adj789 says:

When are gas fees going to stop being awful

samo bajano says:

Safemars 0.001 soon ๐Ÿ’ฅ!

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