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-flippe...

Ethereum Is Losing Favor Among Institutional Investors:
https://decrypt.co/155964/ethereum-is...

Ethereum Developer Vitalik Buterin Sold 25% Of His Coins:
https://themerkle.com/ethereum-develo...

Ethereum co-founder Vitalik Buterin moves $1M of ETH to Coinbase:
https://cointelegraph.com/news/ethere...

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

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

Vitalik collaborating with chain surveillance company:
https://www.nobsbitcoin.com/vitalik-b...

Core Scientific files for bankruptcy:
https://www.reuters.com/technology/bi...

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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