If I want to gamble, I will know that I want to gamble. I gamble with some altcoins at times but very volatile ones with promising prospects. Aside that, I prefer to just invest in bitcoin.
All I have noticed since was that I do not invest in ether because it is becoming less volatile like bitcoin but yet its fall will still be more. In dominance in some years back, it was over 19%, but its dominance as reduced to 16.81% while bitcoin is at over 54%.
I think the coin will remain an appreciative asset but I see no reason to invest in it when I invest in bitcoin that is less volatile, that is more promising and also that is not centralized.
Topic: Are you worried about ETH becoming inflationary again? (Read 36 times)
Prior to EIP-1559's implementation in 2021, ETH was an inflationary asset. With the introduction of this upgrade, ETH transitioned to a deflationary model. This shift occurred as the amount of ETH burned through transaction fees surpassed the newly minted ETH allocated to miners/stakers as block rewards [1].
However, a subsequent decline in Ethereum network activity, attributed to the broader cryptocurrency market downturn and the rising popularity of Layer-2 scaling solutions, led to a reduction in ETH burned. Consequently, ETH once again became inflationary [2].
The recent surge in ETH selling pressure, exacerbated by the spot ETF launch, could trigger investor anxiety due to the historical correlation between increased selling and inflationary trends. Nevertheless, I contend that this market correction is essential for a subsequent accumulation phase and eventual upturn.
I remain confident that the current season's focus on spot ETH ETFs, Layer-2 solutions, and Real-World Asset tokenization will drive ETH price appreciation and reinforce its deflationary nature. The Ethereum ecosystem's strength underpins my long-term bullish outlook, with ETH as a core portfolio holding until my target is achieved. Historical price performance demonstrates ETH's resilience to inflationary pressures.
I would like to know your opinion on this issue:
References:
[1] What is EIP-1559? How Will It Change Ethereum?
[2] Ethereum supply turns inflationary as gas fees drop to record lows
However, a subsequent decline in Ethereum network activity, attributed to the broader cryptocurrency market downturn and the rising popularity of Layer-2 scaling solutions, led to a reduction in ETH burned. Consequently, ETH once again became inflationary [2].
The recent surge in ETH selling pressure, exacerbated by the spot ETF launch, could trigger investor anxiety due to the historical correlation between increased selling and inflationary trends. Nevertheless, I contend that this market correction is essential for a subsequent accumulation phase and eventual upturn.
I remain confident that the current season's focus on spot ETH ETFs, Layer-2 solutions, and Real-World Asset tokenization will drive ETH price appreciation and reinforce its deflationary nature. The Ethereum ecosystem's strength underpins my long-term bullish outlook, with ETH as a core portfolio holding until my target is achieved. Historical price performance demonstrates ETH's resilience to inflationary pressures.
I would like to know your opinion on this issue:
- Do you think the current inflation is a failure of Ethereum?
- Do you believe that this inflation will end soon and ETH will continue to deflate?
- Will you still invest in ETH even if it continues to be inflated?
References:
[1] What is EIP-1559? How Will It Change Ethereum?
[2] Ethereum supply turns inflationary as gas fees drop to record lows
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