The last few articles we have been discrediting Ethereum a bit but today I want to take a look into why ETH could still be a good investment and everything going on with it.
*This article is for entertainment purposes only and is not financial advice. Do your own research before investing and understand the risks. Yes, I also own a bunch of ETH back from when I bought it at $13 on average so I do have stake in the asset.
Slow and Expense
The most common issue people have with Ethereum is it's slower speeds and high transaction costs. However that to me isn't enough to discredit it because if you look at its big brother Bitcoin it has the highest of fees and the slowest of blockchains.
Taking this one step further there are also plenty and boy do I mean PLENTY of options of blockchains that are faster and lower fees. However none of them have even come close to the market cap of Ethereum after all of these years.
And a third point on this is that Ethereum fees while they feel high for small transactions it's actully rather low cost wise for large transaction capital and that those fees are no where near what they used to be at $50-$75 a transaction I remember paying these during the NFT boon.
Lack Of Growth
Many people look at Ethereum itself as a slow slug in terms of development releases. However we also need to take into account that Ethereum has also brought us a lot of the things we use today. Things like smart contracts, NFTs, DeFi and the list continues to grow as it gives it a bed of building complicated code and structures that other blockchains currently don't have or simply piggy back off of what Ethereum is doing providing no real innovation themselves.
Centralized
Ethereum is thought to be centralized and while sure it's a little centralized as you need to have 32 ETH in order to run a node and most people just dump it into either liquid staking tokens or on places like coinbase.
However on the flip side of that Proof of work has become just as centralized as mega corps and other operations have taken over mining pushing the little mom and pop miner out of the systems. We also see that pools are used and a vast majority of mining power is within just a few of those pools while little solo mining goes on.
Ethereum Investment Underperform
This really comes down to when you got in or out of the asset. For example myself getting in a few years back at $13 on average means no matter how wild the swings even if it drops to $500 tomorrow I'd still be looking at massive gains. However someone that got in today at 3.5k could be seeing rather slow gains compared to some other assets right now. But if you invested in ETH just a month ago at $2,450 you'd bit sitting on some rather nice profits now as well.
It's all really just a mater of perspective and when you picked up the asset yourself.
Overall ETH actully looks healthy. It's seen a nice bump in price action, there's still lots of development happening for the chain and there's also a lot of layer two action happening which in theory should increase the demand of the core blockchain.
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