It’s rare that we see a made, tried and tested cryptocurrency hit the charts and then decline into non existence. Yes, we see crypto crumble all the time, but it rarely ever happens to the big ones. Coins like Ethereum have such huge financial backing and of course an almost untouchable reputation that means they are always seen as cryptocurrencies here to last, coins that have a guaranteed role in the future of the blockchain.
In fact, many people believe that Ethereum will be the world’s first globally cryptocurrency, many others believe that on the other hand, this might not actually be the case, after new problems from within the Ethereum network have surfaced over the past week. According to Coingeek:
“Ethereum may have a bloating problem without a solution. Vitalik Buterin, the co-founder of the Bitcoin Coin (BTC) alternative, made the revelation last week, stating that the cost of processing transactions might soon be too expensive for most users. Samson Mow, always a controversial cryptocurrency figure, has responded to what’s happening, calling the Ethereum blockchain a technological dead-end. With capacity almost full and transaction costs at an all-time high, Ethereum is not becoming the BTC alternative it expected to be.”
So, what’s the problem?
“Ether’s network utilization has increased to more than 90%, which results in higher transaction costs. For example, Tether paid $26,000 in fees last month to miners who use the Ethereum blockchain to process transactions. For companies that have previously turned to the distributed ledger technology (DLT) based on previous hype and who have launched their projects on the blockchain, they may now begin to regret their decision.”
In essence, experts believe that Ethereum simply has a limited timeframe and that it has not been able to upgrade at a rate fast enough for it to truly have a part in our future. Eventually, the network will reach breaking point and when it does, Ethereum as a cryptocurrency will become unusable.
Of course, we know that the Ethereum community is built of some very clever people, with the constant view to ensuring Ethereum becomes a bigger and better cryptocurrency. We still believe the future is bright in this one, but agree that some fast changes do need to be made to ensure the longevity of the Ethereum cryptocurrency. Regardless, we hope this technology is around for many more years to come.