In contrast to fiat currencies like the dollar or euro, many cryptos have little practical use. You also need to get an account on an exchange - here's a link with a 10 step process, it could take a few days for your KYC to pass though - no, John, not that kind of KYC.My main concern with most cryptocurrencies is utility. Joe: "Hey, John, I'm going to send you $200 via this awesome cryptocurrency thing! So, it'll take me about 25 minutes and cost $10 - have you got everything setup your end? No? Ok, you need to have a wallet - here's a link with a 50 step process. * The other wallet sends that ETH to an exchange = FEES. * Send that ETH to another wallet = FEES. * onramp with FIAT at an exchange = FEES. The idea of decentralised currency with no transaction fees, of financial services with no middle men. and the absolute irony of what ETH is supposed to represent and what it really is right now, never ceases to amaze me. There are some very interesting aspects within this market that are potentially highly disruptive, one of the key ones being, cutting out the middle men.īut, DYOR - it is a fascinating financial movement, absolutely full of scammers, but there is certainly more than a nugget of some grand ideas at play here. There are thousands of bogus projects that are indeed somewhat like Ponzi schemes - no doubt there!īut you cannot dismiss the entirety of this phenomena as being a flash in the pan and a "get rich quick" scam - that would be silly. If you said cryptocurrencies are a wild west casino, that are easy to manipulate, with little to no real regulations - sure, I'd go along with that.īut it isn't as snappy as reaching for an ill-informed comparison, such as "ponzi scheme".Ĭryptocurrencies are in their infancy and it is a dangerous market to meddle with, the entire house of cards could crash down. Promises of high rates of return have never been made by the creators of Ethereum and the risk associated with cryptocurrency speculation is widely known and widely expressed.Īt least do a little bit of research, before making such assumptions. At that point, the schemes unravel.Įthereum is decentralised to the point of having nearly 5000 unique nodes, so, you know, stab a guess at who is behind this "ponzi" scheme. This is similar to a pyramid scheme in that both are based on using new investors' funds to pay the earlier backers.īoth Ponzi schemes and pyramid schemes eventually bottom out when the flood of new investors dries up and there isn't enough money to go around. A Ponzi scheme is a fraudulent investing scam which generates returns for earlier investors with money taken from later investors. By reducing the number of tokens, the currencies that remain in circulation become rarer and more valuable.Ī Ponzi scheme is a fraudulent investing scam promising high rates of return with little risk to investors. Without access to a private key, no one can use the tokens, putting them outside the circulating supply. In token burning, miners would typically send the tokens to specialized addresses that have unobtainable private keys. The burned tokens will be permanently taken out of circulation. EIP-1559 is a software upgrade that fundamentally changes the way transactions are processed on Ethereum by providing clear pricing on transaction fees in ether paid to miners to validate transactions and "burning" a small amount of those tokens. On Thursday, ether was up 0.6% at $2,312.
He estimates that the expected software adjustment next week, coupled with another upgrade in the first quarter of 2022, should "easily quintuple the price of ether" by next year. While bitcoin is the preferred store of value in the digital ecosystem, Ethereum has emerged as the leading financial infrastructure, settling over $12 billion of daily transactions, according to a Grayscale report released in February this year.Īndrew Keys, managing partner at DARMA Capital, said ether's current price has yet to factor in the looming software upgrade. Each halving helped propel bitcoin's price to higher records. From a report: The upgrade known as Ethereum Improvement Proposal (EIP) 1559 is similar, analysts said, to a bitcoin "halving" event in which periodic adjustments reduced the supply of bitcoin. The scheduled coding revamp will go live on Aug.
Ethereum, the second-largest blockchain network, is about to undergo a technical adjustment that will significantly alter the way transactions are processed, as well as reduce the supply of the ether token and sharply boost its price.
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