- 99% of user tx's will be on L2 within 3 years (paid to rollup providers with ETH and other currencies)
- L1 gas prices soar as L2 rollups increase tx density and thus raise gas prices
- incredible amounts of ETH are burned daily w/ EIP-1559
2/ in this world for most users, $ETH's primary use is as a programmable store of value / reserve asset in the Ethereum digital economy
if users transact with it, more often than not, they will replace it
it will see significant reserve demand and increase its monetary premium
3/ this is based mostly just on the inherent properties of $ETH as i see them, which are still not well-understood by the market
over time, the value proposition of using #Ethereum versus some other L1 will be censorship-resistant, non-custodial access to ETH as a money / SoV
4/ a lot of people aren't ready for this world,
but if you think about the incentives of public blockchains, the unique positioning of $ETH vesus other L1s, and the realized utility of #Ethereum,
i believe these things are inevitable
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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)