ETHEREUM: The Crypto Saviour?

#CoinDCXpathbreaker

Original image designed by author

In this article, we will extensively talk about Ethereum & discuss why this particular crypto might be the saving grace of the entire crypto ecosystem.

An introduction to Ethereum:

ETHEREUM was created by Vitalik Buterin in 2015. As an individual blockchain, Ethereum borrows many fundamentals & frameworks from the Bitcoin blockchain — But Vitalik Buterin saw a gaping hole in utility & use-case… and wanted to allow developers to be able to create apps on top of Ethereum and challenge the limited functionality that Bitcoin had to offer.

Vitalik had a clear vision to go ABOVE & BEYOND 🚀

Tokenomics of ETHEREUM

Though Ethereum is plagued with many drawbacks, that range from the high gas-fees, slow TPS (transaction per seconds), higher cost to entry when compared to the newer kids on the block, like Solana, Avalanche, Harmony, Cosmo… but there is no denying that Ethereum truly is the one that inspired these newer projects, dubbed “Ethereum Killers”

Now coming to the main topic, Why do I say that Ethereum might be the right way forward? and in what context do I say it? Lets deep dive…

HODL your investments

Okay, I am currently divided by two schools of thoughts here:

  1. I hate the whole HODL mentality, its just a waste of time and portrays “Booking Profits” as a DEGEN thing to do
  2. I also hate the whole $UST fiasco that happened recently and goes to show us how UNSTABLE Stablecoins can be 🫠
DED!

I absolutely do not subscribe to either the HODL mentality & now my faith from stables is also vanishing…

“So what are you proposing?”

If I had to go with one side of the team, I would say its best to either just Hold ETHEREUM in a cold wallet, if you believe in the tech…or just stick to fiat currency.

Like me, if I want to be in the sidelines, I only stick to INR ₹ in my CoinDCX wallet & trade directly with the INR pair of crypto. Peace of Mind in abundance.

Stablecoins are KILLING the crypto space:

Total supply of stablecoins in the market

If you see the above chart closely, the total supply of 15 stablecoins in the market is close to $200 billion. Thats an absolutely insane number, especially if you compare the figure to 2017…mind you, 2017 was one of the most EPIC BULL RUNS the cryptosphere witnessed.

Legend has it: Plebs are still waiting for the 2017 altseason to return 🌝

These stablecoins act as an hedge — it allows peiple to CASH OUT, without ever leaving the space — but where is the safety? $UST surely taught us a lesson that when things get tough, your stablecoin will depeg sooner than you can withdraw from your high APY protocol. BUYER BEWARE.

Non-Fungible Tokens & its own multiverse of madness

NFTs brought in a whole new era of of how traders traded the crypto market. From trading magic internet coins, they now went on to flip Digital Art on dedicated NFT Marketplaces…it was a paradigm shift happening right before our eyes.

the monkey that will cost you a FORTUNE

Even this space was fuelled by Ethereum! Every NFT worth its salt was being minted on the Ethereum blockchain… OpenSea changed the entire game and floor prices of the most popular NFTs were not on the floor, but in the skies…lol, bad joke!

NFTs are currently taking a breather with the rest of the market — this sector is new and with the explosion of a full blown invasion of the Metaverse on us, NFTs will just keep rocketing up 🚀, not only in prices, but even in use-cases! 🌙

Decentralised Finance = DEFI. DeFi. defi

Total Value Locked across DeFi

Another game-changer enabled by our very own hotshot Ethereum is the DeFi sector:

  • banking the unbanked
  • breaking away from the non-sensical traditional finance sector
  • allow yield farming
  • high APY on lending
  • letting owners own money

I can go on and on, but truly, DeFi is a revolution in every true sense. the biggest probelm with DeFi on Ethereum currentky is the absolutely ridiculous gas-fee to interact with any protocol at all. Its just out of reach from an investor who does not have deep Ethereum pockets — but the majority of players who can afford the gas fees, DeFi is the home to making life-changing money.

ETHEREUM 2.0

The ETH 2.0 Merge is Ethereum’s move from Proof-of-Work (PoW) to Proof-of-Stake (PoS). So with the PoW model, Ethereum currently follows the mining model of Bitcoin which consumes a great amount of electricity. Crazy high-end hardware has to be used by miners, like the absolute beast of a Gaming Graphic Cards — and that too in numbers, 1 card will not yield you much.

example of a ETH mining rig

The above image of an ETH mining rig, damn! This many graphic card can make GTA V run on 15000 fps at 8K resolution…lol, JK (but am I?)

So in their race to win the block reward, miners invest heavily into this kind of hardware and yet again, the entry cost limits the number of participants in the mining pool as not everyone can afford to invest in such hardware, nor do they have access to cheap electricity and/or both. This makes it harder for the Ethereum network to become truly decentralised, since miners who have hoarded such hardware can actually control the network, well not literally, but you get my point!

Leaving all that aside, ETH 2.0 aims to deploy Sharding in 2023, which will finally solve the gas-fee issue and we shall all benefit the fruit of this reward.

Key Takeaways:

So yeah, like any other blockchain, ETHEREUM is not perfect, but it has brought in a new era of decentralised products and sectors. I still remember seeing ETH trade at $110 in 2018 and today in 2022 seeing it “CRASH” to $2,000… enough said about stability.

Even though we are in a bearish market sentiment and retail has almost capitulated…wealth is made buying the bottoms, not buying the euphoric tops.

Long term, ETH is here to stay and offer the best to the crypto space. We will keep seeing new DeFi protocols, new developers, new NFT use-case & new Metaverse(s) coming up on the Ethereum blockchain. Even so more, after the whole Terra fiasco, new developers will be more cautious in investing their time to a Blockchain that has proved itself…rather than boarding a train to REKT CITY.

Want to avoid ETH volatility, but still want to STACK?

Simple answer: CoinDCX Crypto Investment Plan

CIP On CoinDCX
  • Simply sign up on CoinDCX and complete KYC
  • Load your INR wallet
  • Click on CIP on CoinDCX app
  • Choose ETHEREUM and your desired amount (between ₹200-₹5000)
  • Voila, every week CoinDCX will automatically purchase your desired amount of ETH for you and credit to your wallet

This is how you beat the bear market & volatility! 🚀

A huge thank you to CoinDCX for giving me this opportunity to write such a detailed report and be a part of the #CoinDCXpathbreaker program, enabling me to share such knowledge with everyone in the crypto space.

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Mohnish Isaac Kariappa

Mohnish Isaac Kariappa

I make use of advanced Technical Tools and On-Chain Data to make crypto easy to understand for everyone in the crypto community. #CoinDCXpathbreaker