We are going to be writing about something that is going to happen. And I need you to all understand why it is going to happen. We will be talking about why Ethereum will most certainly be hitting 10 000 usd per coin. It’s to clear up any confusion a lot of people seem not to understand exactly what Ethereum is or why it’s going to hit 10 000 usd or why even why the price is so high right now.
So for those of you who may already know, bitcoin is typically historically thus far and has been seen as a store of value and or digital gold and or something that we will base other currencies on in the future.
So İ.e you collect all the bitcoin, governments collect bitcoin, companies collect bitcoin, which they definitely are. And therefore, in the future, as bitcoin has a super high stable value.
We will be able to then print or create or whatever mint other currencies based on the amount of bitcoin that a country has in their coffers.
The entire idea of Ethereum is they are meant to be a world internet. A brand new decentralized internet where you can pretty much do whatever you want, make whatever you want, create whatever you want, all on top of this platform.
Ethereum has been around since around 2015, somewhere around there in that time frame. So İt has taken them a number of years to be able to create these upgrades that we finally see beginning to roll out.
That is Ethereum 2.0 more transactions per second and also a very important one that a lot of people once again need to know about because this is going to be the actual game-changer for the network.
Bitcoin has a market cap of 21 million coins. There can never be any more. There will never be any more.
There can be people who create copies of bitcoin, but that is still not bitcoin. So no matter what is done, we will never have more than 21 million bitcoin ever created by the network.
Eip1559 Ethereum Improvement Why We Need
However, Ethereum is not this way. Ethereum is actually, at the moment, inflationary in that every single day new coins are being created. More and more every single day, and there’s no actual cap.
So there’s no top to the amount of Ethereum that will ever be created. And this a couple of years ago, this led a lot of people to get a little annoyed, and there were discussions as to if we should have an actual top to the amount of Ether that was being created.
I think the original proposal was for 120 million coins. That didn’t happen, and I think the proposal was for 140 million coins. So I think there are still coin flips discussions happening somewhere about if this is going to happen.
Now the actual proposal that is going through is something called the EIP1559 Ethereum improvement proposal. Why this is so important is because I’m pretty sure you’ve seen you’ve definitely seen something on tv and or youtube where people are creating cryptocurrencies.
They always have something where they’re showing all these people who are creating bitcoin, and they walk into this gigantic mining factory, and there are thousands of computers, and it’s really hot in there there’s a whole bunch of cold air and stuff like that everywhere. This happens the same way on the Ethereum network.
I.e., what happens is every time that a transaction happens on the network that gets passed back and forth, there are slight intermediaries in the middle called miners, the people who are mining the cryptocurrencies.
They’re using all of those computers to validate your transactions that happen on the network. When they validate a transaction, they’re getting transaction fees.
So that gets sent to them, and therefore it’s kind of like a little smidge of a thank you for making sure that our network is completely safe and robust.
A portion of what eip1559 is going to do is, it’s going to burn portions of those transactions that would normally be sent to the people who are mining the coin.
Why is this happening? Because Ethereum is transitioning from Ethereum 0 to Ethereum 2.0, which is going to go from proof of work with all the machines to proof of stake with just your computer.
Meaning that if you want to make new Ethereum, you can use your computer like your actual computer at home right now no extra hardware is needed. You can do it directly on the computer. Read More…