Coinbase executives released a new report evaluating the developments in 2020. The company, which scrutinized crypto currencies such as Bitcoin and ethereum, announced that the number of institutional investors making ether investments started to increase.
Ether valued at 5,689 percent in five years
Coinbase started using the ether price index on May 24, 2016. Ether has gained more than 5,600 percent since then. It has charted a better chart than bitcoin, valuing 487 percent throughout 2020.
1- Its potential to evolve into a store of value,
2- The need for ether to perform transactions on the Ethereum network.
Ethereum has advantages as well as risks
Ethereum faces problems such as scaling, transaction capacity, high transaction fees when it comes to wide usage areas. Ethereum-based smart contracts pose a security risk to him due to the vulnerabilities they contain. These minuses cannot undermine its potential.
It may be possible for phases such as Phase 1 and Phase 2 to correct some of the roughness of the EIP-1559 policy. While these updates make ethereum more scalable, a deflation-oriented policy can be followed within the network. "This complex process, which is expected to take several years," can bring its potential into reality.
A simpler language needs to be used According to the COINBASE team, there is one thing the ethereum community should be aware of in this process: the use of language. Compared to gold for several years, bitcoin has assumed the title of 'digital gold' and has penetrated investors with this simplicity.
The same simplicity has not yet been reflected in ethereum. Before a person who has just met his world:
* potential uses and
* To learn the obstacles (such as transaction fees) that may arise,
* then understand how these problems can be solved,
* finally, it is expected to recognize it as a 'store of value'.
Coinbase's expert names explained that it is much more complex than bitcoin in this form, and this complexity can be eliminated in the coming years.
