2/ e.g., even now, every economic tx in the world where $35 is an acceptable fee *could* try to use Ethereum
we can't stop them from coming
then, fees go up b/c $100 acceptable fee txs arrive en masse. they get pissed
what if the cycle keeps ebbing & flowing?
3/ part of me wonders if it does go on forever, even after L2
but the reality is no chain has solved these issues while maintaining the value prop of blockchains (true decentralization)
they work now, b/c they aren't used under load, maybe b/c value prop isn't clear
4/ the sooner we are honest about that, the sooner we can admit that truly censorship-resistant tx's are a very scarce good, where supply may ALWAYS be <demand
my best guess is the future will be a mix of centralized side chains + Ethereum L1/L2 ... probably for a long time
5/ at the end of the day, Ethereum tx's are priced at their market value- no more, no less
we could argue current participants are being forced to "buy" tx's from a monopoly provider
perhaps. but it's also possible there are NO valid substitutes for many use cases
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1/ we have new participants entering #Ethereum, first from #DeFi, but increasingly from #NFTs
many highlight concerns on energy consumption from Proof of Work blockchains like #Ethereum & #Bitcoin
let's talk about it, and how we'll move past it in #Ethereum Proof of Stake 🌳👇
2/ first, it takes a tremendous amount of energy to secure a Proof of Work (PoW) blockchain
PoW blockchains are secured by computers (mostly graphics cards and specialized hardware known as "ASICS") from "miners," solving a work-intensive math problem for every block produced
3/ the total "miner" contribution of this energy/computational power is known as "hashrate"
the "winning" miner who solves each new math problem first gets to produce the next block, and receives a block reward (in ETH, BTC, etc.) and any fees paid by users within that block
1/ yes, the celeb #NFT thing will be a huge bubble, and at some point, people may start to *hate* new releases and become jaded by them
the near-term benefit for the adoption of #Ethereum is many of their fans may be compelled to buy $ETH and use Ethereum for the first time ever
2/ but some celebs won't be able to resist the low-effort cash grab
some firms are making it easy for them- doing all of the work for them and just sending them a check for their licensed work
would you buy a SouljaBoy lunch box? no?
but some would buy the NFT apparently
3/ this will be free money for these folks while it lasts, and in truth, it could last for a while
but keep in mind that if the creator is too prolific with low quality work, then expect all pieces from that creator to plummet in value one day (esp if B-list celeb)
DO NOT FOMO INTO NFTS WITH MONEY YOU CANNOT AFFORD TO LOSE
buy to collect for the long-term. imo, some of these will become priceless pieces of history, and most of you will sell them way too early b/c you're overextended