Ethereum is something else… – The staunchest defenders ofEthereum (ETH) hope to one day see a flipping with Bitcoin (BTC), that is, to see it pass as the most valued cryptocurrency on the market. However, these two projects did not not the same goals and should even be considered as two distinct categories. Anyway, that’s what I think Arthur Hayesthe former CEO of the BitMEX platform.
Ethereum, the future gas that will supply the cryptosphere with energy?
Not all crypto projects are alike. Far from it! Although Bitcoin and Ethereum are the two crypto-assets with the highest market valuation, their role and development objective are very different.
This September 6, 2022, Arthur Hayesthe ex-boss of the crypto exchange BitMEX, gave an interview to the show “Unchained Podcast” on Youtube. He exhibits his vision from Ethereumwhich he does not consider a currency:
“I think people don’t understand what Ethereum really is. Ethereum is not a currency. (…) Ether is a raw material (commodity), but not money. (…) Ethereum has a use case [autre]. It is used to power applications on this network. »
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Bitcoin, a digital currency playing the role of gold 2.0
The ethers are therefore seen by Arthur Hayes as a kind of gas or oil. They make it possible to supply and use the applications of a “decentralized supercomputer”. But he has a very different vision of Bitcoin:
“Bitcoin has no use other than being a currency, just like the dollar has no other use. It’s just money. And that’s why it’s a good form of money because its value can’t be confused with the real usefulness of other things. (…) The digital gold of the internet is Bitcoin. »
Coming back to Ethereum, and given this announced role of commodity, Arthur Hayes is showing himself to be quite worried appearance deflationary the number of ethers. Deflation which risks being amplified with The Merge. However, this could contribute to increase the cost of gas, which is precisely used to power decentralized applications. What makes the network less and less accessible at smaller exchanges, according to the former BitMEX executive.
However, it should be noted here that the price of ethers (which could indeed increase) is not necessarily the main factor in these transaction costs. Indeed, it is above all the saturation of the number of transactions per second of the ETH network and its increasing use, which are driving the brunt of the gas cost explosion. Solutions for improving this number of transactions – say scalability – are however planned. In particular the rollups where the sharding.
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