As per the coin market cap, Ethereum has become the third largest cryptocurrency, after Bitcoin and Ripple. Ethereum has maintained the second spot for a long time but with time it has plummeted to the third position. So, is it safe to ask this question: Is Ethereum dead? Well, we think we must hold on. Let’s check the facts first before we decide on something.
Those who still do not know what Ethereum is, then let us tell you that Ethereum is the first cryptocurrency to introduce smart contract technology that allows developers to create and deploy decentralized applications on its platform. However, Ethereum’s value has not been rosy for the last few months. Since this cryptocurrency was launched in 2015, its price has come down from $1,417 to $141.12 (at the time of writing).
Other than that, the platform also underwent many challenges, including the slowing down of the network when Cryptokitties was launched on it. Moreover, scaling problems have always been a real threat to Ethereum’s future and it does not come as a surprise that a multitude of investors has now started to predict its death.
The majority of the investors argue that as the Ethereum’s platform is growing, it’s token has been losing its functions. While some of these arguments may have a valid point, we still think it is a bit too early to say that Ethereum is dead.
Is Ethereum Dead? Here are Some Reasons That Could Lead to Its Death
Ethereum is not dead yet. This we already know. But there are some reasons that could lead this cryptocurrency towards its untimely death. Let’s go through them one by one.
GAS May Lose Its Future
Ethereum offers a cryptocurrency token which is, in fact, a utility token. Other than that, there’s a GAS token which is given to the miners in the form of a reward.
As you are already aware that Ethereum’s platform makes use of smart contracts which then enables users to use any cryptocurrency of their own choice. And this is exactly the point where Ethereum token and GAS will lose their function.
Moreover, the platform is currently using Proof of Work as its consensus system but has now begun considering to shift to Proof of Stake system that might spell the culmination of GAS.
Removing Ethereum Based Fees
Technically, the smart contracts are removing the use of ether in the Ethereum ecosystem. Smart contracts allow users to pay miners using a cryptocurrency of their own choice and the smart contracts then change it to any other coin as required. Keep in mind that Ethereum could lead to its death if there are no ether-based fees.
No Software Support
Another argument regarding Ethereum’s death is that its software is a bit technically different from the ERC20 standard tokens that are being issued on the platform. Up till now, there is no software support that could make ether compatible with ERC20 tokens.
Pricing of ETH is Different
Generally, the crypto market is highly volatile and this makes it impossible for anyone to predict the future of a crypto coin including Ethereum. The majority of the smart contracts are linked to the ERC20 tokens and none of them are directly linked to Ether.
It is possible to write the smart contracts without having to link them to Ethereum or ERC20 tokens. This again could be the reason for Ethereum’s death.
No Improvement Even with PoS
The PoW consensus mechanism used by Ethereum’s platform is often blamed for the lack of scalability especially when the system is jammed. Even if Ethereum decides to move on to PoS consensus mechanism, the algorithm won’t allow miners to hold any ether with them and this could bring some bad news for Ether as a digital currency.
So Is Ethereum Going to Die?
Well, most of the crypto enthusiasts who no longer believe in Ethereum’s feature think that it is dead. As Ethereum’s price plummeted at the beginning of this year, most of the naysayers started believing Ethereum’s downfall is inevitable.
However, we still believe it is too early to predict the collapse of Ethereum and consider that it’s soon going to die. Still, there are so many experts that strongly believe that Ethereum is going to make a comeback.
According to the co-founder of Ethereum, the current bear run is expected to continue a bit longer and that doesn’t necessarily mean that Ethereum is on the verge of dying. There is a multiple of projects including many startups that are being launched on its platform, backing the success of Ethereum down the road.