Cryptocurrency

Ethereum Is Dying (Sad)



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In this video, I discuss Ethereum’s poor performance since the September 2022 merge, and some reasons behind it.

One of the worst things about Ethereum is this:

The whole system is set up to maximize rent-seeking by large ETH holders and beneficiaries of the huge premine/presale. Most Ethereum sheep don’t even realize this.

Ethereum extracts money from its users/transactors and gives that money to large Ethereum stakers (the more Ethereum you own and stake, the higher the probability that you will get to win the next block).

How does this work? When you make an Ethereum transaction, you pay a base fee and a priority fee (tip) to the validators (i.e. people who have staked their ETH).

Unlike in BTC, in ETH you even pay this fee whether or not your transaction goes through.

The base fee is burned (EIP 1559), thus decreasing the overall supply of ETH and helping ETH stakers/validators. ETH stakers/validators keep the priority fee/tip, thus getting even richer.

Do you see what is happening? The entire system is set up to rent-seek off of transactors, in order to benefit holders. Kinda reminds you of the endless tolls and fees in the traditional fiat system that enrich banks and payment processors.

Summary:

Users get financially penalized for using the network, while holders/stakers of ETH get rewarded.

Not investment advice! Consult a financial advisor.

Will Ether Flip Bitcoin in the Next Year?
https://blockworks.co/news/the-flippening-will-ether-flip-bitcoin-in-the-next-year

Ethereum Is Losing Favor Among Institutional Investors:
https://decrypt.co/155964/ethereum-is-losing-favor-among-institutional-investors-coinshares

Ethereum Developer Vitalik Buterin Sold 25% Of His Coins:

Ethereum Developer Vitalik Buterin Sold 25% Of His Coins

Ethereum co-founder Vitalik Buterin moves $1M of ETH to Coinbase:
https://cointelegraph.com/news/ethereum-co-founder-vitalik-buterin-moves-600-eth-to-coinbase

How Ethereum gas fees work:
https://ethereum.org/en/developers/docs/gas/

Ethereum validators actively imposing OFAC censorship:
https://www.mevwatch.info/

Vitalik collaborating with chain surveillance company:
https://www.nobsbitcoin.com/vitalik-buterin-and-chainalysis-want-privacy-users-to-submit-their-tx-history-to-intermediaries/

Core Scientific files for bankruptcy:
https://www.reuters.com/technology/bitcoin-miner-core-scientific-file-chapter-11-bankruptcy-cnbc-2022-12-21/

I am not being paid or otherwise compensated by any company or cryptocurrency project that I mention in my videos. My opinion is not for sale. Please do not contact me with any affiliate or advertising deals.

#Ethereum
#Bitcoin

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36 Comments

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  2. I had a fair sum of ETH a couple of years back, but thanks to research done here and other sources I decided to dump ETH and buy BTC. I'm so glad I did. Thank you Matt.

  3. It's not dying it has its place..there are no guarantees it all could crash ..bitcoin too, who knows, nuclear war, USA is a basket case you got a complete retard puppet in place. Every institution politized and corrupted, open borders, 32 trillion debt and growing. In the process of losing the reserve currency..America the land of the brave. No more like dumber than dumb…

  4. If Bitcoin fails (haha, as if) you can just become a comedian, Matt. I love these videos where you use your dry sense of humour to drive home your points. Thank you for making my day!

  5. Wow, poor BTC maxi is really jealous of staking. Geez just buy some ETH. No need to go on a useless 9 minute rant.

    Also, it's now obvious you were dead wrong when you said they will ban ETH by the end of 2023. The truth is they will do the opposite and approve an ETH futures ETF soon after they approve a spot BTC ETF. Several companies have already filed for ETH futures ETFs. But of course you're a nasty, lying, hateful, BTC maxi that doesn't want his listeners to know the truth.

  6. You constantly making fun of his appereance like you aren't a pencil neck nerd yourself is hilarious. You come off as insecure and I don't even like ETH. You probably have way more in common with Vitalik then you know. It's ok. You are playing for a diffrent team no need to be a bully it takes away from your credibility.

  7. Sadly most ETH holders don't really care about their rent seeking protocol because they are completely unaware of how the fiat system works. ETH is "number go up, freedom go down" technology. People won't realize it until it's too late.

  8. When ETH went from PoW to PoS, they lost my interest, as ETH was one of the coins I was mining… Since then, after spending boatloads on mining equipment, I have intuitively thought much the same way as you've managed to explain here in your video…I appreciate the explanation, as it affirms my own thoughts on the matter… I'm no longer an ETH fan…

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