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Don’t be sad or happy about the ups and downs of virtual currency! Trust the future!

Don’t be sad or happy about the ups and downs of virtual currency! Trust the future!

… But I’m still happy when it goes up, and when it goes down, I say, “Trust the future! (laugh)

It is now August 2021 and Ethereum (ETH), the next major virtual currency after Bitcoin (BTC), is going up. The reason for this is: ….

This is because Ethereum (ETH) made a major update (industry term: hard fork) “London” on August 5. The name “London” is an improvement measure (EIP = Ethereum Improvement Protocol-1559) named after the Ethereum developers’ conference “Devcon” held in London. (The next conference is scheduled to be held in Shanghai.)

Improvements to “London” include

The volatility will be stabilized due to the automation of transaction fees (gas fees) from a bidding system. The steep rise in transaction costs will be controlled.

The supply (some estimate nearly 80%) will be reduced by completely excluding a portion of the gas bill from ethereal distribution and incinerating (burn) it. This will make ethereum a deflating asset for investors, and the price can be expected to rise in the long run.

However, since rewards for miners will be reduced, there is a possibility of a temporary departure from ethereum.

However, the most attractive thing about Ethereum is its willingness to constantly update itself to new situations without hesitation.

Ethereum, including DeFi (decentralized financial services) and NFT (non-fundable tokens), was never short of topics.
The transition to “ETH 2.0” (EIP-3554) is then planned by early 2022. It is planned to move Ethereum’s algorithm from Proof of Work (PoW) to Proof of Stake (PoS) to improve efficiency, and power consumption will also be reduced rapidly.

In PoW, miners use their vast computing power to verify transactions, but in PoS, users can earn the right to verify transactions and earn coins by presenting Ether.

Holders will be happy to see ethereum increasingly demonstrate its uniqueness, which will not be swamped by speculation about bitcoin.