One of the cool things with crypto is that users and capital are free to move to and from anywhere in the world.
This is the free-est market we’ve ever seen. And free markets are very efficient… value and capital will always flow to wherever they are most utilized and productive.
ETH is still likely to go up further in price from here because of the social media hype. But it’s now just a matter of time before people realize how inefficient it is and actually unusable for its intended purpose.
When network activity goes up from lots of new users coming in, it becomes literally unusable! With its current capacity of only 15 to 30 transactions per second, the big traders are bidding each other out for priority in getting their transactions confirmed and written in the blockchain.
This trx fee bidding wars (gas wars) push the trx costs to the moon so that everyday users cannot afford it anymore.
To fix this problem, they’ve been working on ETH2 for more than 2 years now but still with no completion date in sight. It’s not easy to “upgrade” a worldwide system that you cannot turn off for maintenance.
Even if they manage to do that, ETH2 is only expected to handle up to about 100k trxs/sec.
All the while, some projects currently on the Ethereum network are already working on their migration to the Cardano network as it prepares to deploy its full smart contract functionalities. Rollout has already started in Dec 2020, and expected to complete this March 2021.
Users and capital are now starting to move into the vastly more efficient Cardano blockchain ecosystem.
The Cardano design specification has demonstrated that it’s able to handle up to 1M trxs/sec. For additional comparison, VISA currently handles only around 1.7k trxs/sec. (No, it’s not 24k tps)
With this capacity, there won’t be any more need for gas wars. And we will all be able to use an open and decentralized money network that is not controlled by any single entity.
Ethereum right now is like Yahoo in the early 2000’s. While Cardano is like Google back then.
I’m old enough to live through that time when the gateway to the internet was Yahoo. No one heard of Google back then. And Yahoo laughed at the innovation of Google. Today, no one even knows what Yahoo does anymore. And Google became so successful that we now use its name as a verb.
Investing is betting on the future. Read up on Cardano before you won’t be able to afford ADA anymore. It’s still very early today.
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