Video: The Increasing Scarcity of Ethereum Could Lead to Higher Prices

In the first week of August, Ethereum (ETH, Tech/Adoption Grade “A”) released its London hard fork, which ushered in three weeks of consecutive green candles. While ETH — along with the broad market — has taken a small breather after an exhilarating run, crypto analyst and editor of the Weiss Crypto Portfolio Juan Villaverde believes there’s still plenty more upside.

Part of that is due to the new process of “burning” ETH with each transaction, destroying the ETH used in transactions to prevent the soaring transaction fees we saw earlier this year.

In this week’s Weiss Crypto Sunday Special, Juan reveals his belief that while “the user experience on Ethereum has definitely improved,” this upgrade isn’t all roses and sunshine. He explains:

As the price of Ethereum goes up in fiat terms ... I mean, we continue to live in a fiat world; things are priced in dollars. And when people say that transaction fees in Ethereum are high, they don't say, "Well, I just had to pay 0.15 ETH for this transaction." They just say, "I had to pay $400 for this transaction." So, what if you introduce an upgrade that doesn't necessarily make the price of Ethereum go up, but it certainly goes in that direction, right? If you're making this asset scarcer, you're helping its price go up. And I think we need to get into this discussion of, is a good thing for the price of Ethereum to be as high as Bitcoin's, for example. I argue, "No, it's not." You don't want this on Ethereum.

In this timely interview, Juan and Chris cover:

•  How fees on Ethereum originally started.

•  The impact on trading ETH’s increasing price could have.

•  The future of smart contract usage if prices skyrocket.

And more!

With ETH preparing for its next run up, I recommend you watch this informative video now.

Best,

Beth Canova
Managing Editor