When it comes to Ethereum, the debate over scarcity is an important one. Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference.
These apps run on a custom built blockchain, an enormously powerful shared global infrastructure that can move value around and represent the ownership of property. This enables developers to create markets, store registries of debts or promises, move funds in accordance with instructions given long in the past (like a will or a futures contract) and many other things that have not been invented yet, all without a middleman or counterparty risk.
The Ethereum network itself is relentless and unstoppable. It is constantly running and there is no centralized entity that can shut it down. However, the supply of Ether, Ethereum’s native currency, is not infinite.
It is capped at 18 million ETH per year and will eventually be exhausted completely. So while the network may be unstoppable, its currency is not.
This raises the question: is Ethereum scarce? And if so, what does that mean for its future price?
NOTE: Warning: Ethereum is not a scarce asset. While its total supply is limited, it can be subdivided into smaller units and added to the circulation at any time. Additionally, Ethereum does not have a fixed rate of inflation like some other digital assets, so its value can fluctuate widely. As with any investment, do your own research before making any decisions.
There are two schools of thought on this issue. The first believes that because Ethereum is not scarce right now, it will never be scarce.
The logic goes that because there is no limit to how many ETH can be created, eventually there will be so much ETH in circulation that it will become worthless. This camp believes that Ethereum’s price will eventually approach zero.
The second school of thought believes that while Ethereum is not currently scarce, it will become scarce in the future as the total supply approaches its limit of 18 million ETH. This camp believes that as demand for Ethereum grows and the supply dwindles, the price will go up.
They believe that Ethereum could even become more valuable than Bitcoin because it has more utility than just being a store of value.
So which camp is right? Only time will tell. But one thing is for sure: the debate over scarcity is an important one for Ethereum’s future price.
7 Related Question Answers Found
Since its launch in 2015, Ethereum has become the second most popular cryptocurrency after Bitcoin. The Ethereum network allows developers to build decentralized applications and issue their own tokens. These tokens can be used to represent virtual shares, assets, proof of membership, and more.
Ethereum, the world’s second-largest cryptocurrency by market value, can be shorted. This means that traders can place bets that the price of ether will fall in the future. While some see this as a way to make quick profits, others view it as a way to hedge their portfolios against potential downside risk.
The Ethereum blockchain is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference. Ethereum is still in its early stages and yet it has already attracted a great deal of attention from some of the biggest companies and organizations in the world. Microsoft, IBM, JPMorgan Chase, and others are all building on Ethereum.
When it comes to Ethereum, there is a lot of debate in the crypto community about its future. Some people believe that Ethereum is a dead end, while others believe that it has a bright future. So, what is the truth?
The cryptocurrency market is a highly volatile one, and Ethereum is no exception. In the past, Ethereum has seen massive price swings that have taken it from being worth less than a dollar to over $1,000 in just a matter of months. However, these price swings can also work in the other direction, and there is always the potential for Ethereum (or any other cryptocurrency) to crash to zero.
When it comes to cryptocurrencies, nothing is set in stone. However, there is one thing that is certain about Ethereum: it will eventually become unmineable. This may seem like a bold claim, but there is actually a very good reason behind it.
It’s been a tough few months for Ethereum. The second-largest cryptocurrency by market capitalization has lost over 80% of its value since January 2018, when it reached an all-time high of $1,420. Ethereum’s decline has coincided with the bear market in cryptocurrency, which has seen the prices of Bitcoin and most other digital assets fall by more than 70%.
