Why Ethereum Needs To Become ‘The Walmart of Crypto’

TL;DR

If Ethereum desires to scale AND proceed to carry the title of ‘Extremely Sound Cash,’ it wants to maneuver from the Bloomingdales mannequin, to the Walmart mannequin.

If Ethereum’s transaction fee goes down (prefer it has lately), the availability of ETH really goes up, watering down its total worth.

So with the intention to keep ‘extremely sound’ Ethereum must change into the Walmart of crypto: As an alternative of processing a small quantity of worldwide financial transactions at excessive charges (anyplace between $3-3000), the ETH community must transition to excessive transaction volumes, with tremendous low charges.

Full Story

Bloomingdale’s 2022 income = $2.8B Bloomingdale’s mannequin = promote costly objects, in low volumes.

Walmart’s 2022 income = $573B Walmart’s mannequin = promote low-cost objects, in excessive volumes.

If Ethereum desires to scale AND proceed to carry the title of ‘Extremely Sound Cash,’ it wants to maneuver from the Bloomingdales mannequin, to the Walmart mannequin.

Confused? Here is what we’re on about:

Each month, there’s a specific amount of recent Ethereum created, with no cap on how a lot might be created in whole, over time.

To fight this fixed inflation fee, a bit of every payment is destroyed each time an Ethereum transaction is made.

The extra ETH transactions are made → the upper the transaction charges change into → the extra ETH is burned.

…the thought being that the full quantity of Ethereum will really lower over time, as extra folks begin utilizing it (giving it the title of ‘Extremely Sound Cash’).

The one drawback is…

If Ethereum’s transaction fee goes down (prefer it has lately), the availability of ETH really goes up, watering down its total worth.

So with the intention to keep ‘extremely sound’ Ethereum must change into the Walmart of crypto:

As an alternative of processing a small quantity of worldwide financial transactions at excessive charges (anyplace between $3-3000), the ETH community must transition to excessive transaction volumes, with tremendous low charges.

Step 1: guarantee low charges, no matter present transaction quantity.

(As a result of nobody goes to undertake to a worldwide financial community that is charging $3-$3000 a bit, in charges).