Why Ethereum Needs To Become ‘The Walmart of Crypto’

TL;DR

• If Ethereum needs 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 price goes down (prefer it has lately), the provision of ETH really goes up, watering down its total worth.

• So as a way to keep ‘extremely sound’ Ethereum must develop 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 needs 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? This is what we’re on about:

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

To fight this fixed inflation price, 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 develop into → the extra ETH is burned.

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

The one downside is…

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

So as a way to keep ‘extremely sound’ Ethereum must develop 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).