Will Ethereum be the next My Space?
The Rise of Binance Smart Chain
Background
For those who haven’t heard of MySpace, it was FaceBook before there was FaceBook. It was once everywhere in the world, and then it was nowhere.
It’s was completed populated by teenagers and twenty somethings. And now it’s name is mostly unknown to them.
These are the reasons Ethereum could become the new MySpace
First,
BNB closed over $600 yesterday, up from $265 a few days ago. A 100% gain in less then a week.
Second,
BSC based PanCake Swap just flipped Uniswap. That’s cryptospeak for it just surpassed it in Total Value Locked.
By the way, the TVL of Pancake Swap is Over 12 billion dollars.
Third,
Transaction Fees on BSC desktop are 6-7 cents. 0.06 USD for those unfamiliar with US coins.
Transaction fees on Ethereum are 40-100$ for the same transaction.
Fourth,
Ethereum Governance Model only allows change to occur at a glacial pace as in the speed of the movement of glaciers.
Fifth,
The Ethereum Community clearly possesses more developers numerically then any other project. And changes are discussed carefully and thoroughly. But actual change then takes a long time. If you Google Ethereum Proof of Stake 2019 will pop up. Yes two (2) years ago. Current estimates for Ethereum 2.0 Proof of Stake chain joining the Mainchain are 2022. Don’t hold your breath though.. the Ethereum miners need to agree.
Sixth,
Ethereum Miners have a profit interest in the Status Quo The Ethereum Miners, defined here as the people running computers with a complete copy of the Ethereum ledger, approving blocks and maintaining the integrity of the blockchain are making large transaction fees on a blockchain operating close to capacity.
They have no real incentive to agree to transitioning to Proof of Stake, which allows people with much cheaper equipment to compete with them for much smaller fees on a new blockchain and abandon their current profitable scenario.
Seventh,
The Rich, or rather the people performing their transactions, will stay until they leave...
The rich, of which there are plenty in cryptocurrency are currently paying whatever it takes to perform DeFi transactions because large transactions move faster on Ethereum and cheaper on Ethereum then the Legacy system. So it makes economic sense for them.
But as soon as Binance Smart Chain has a year or more under their belt and the people making commissions off performing these transactions for the rich figure out they can shave 50-100 dollars off the costs of each transaction 10 to 100 times a day....
I suspect...They will move all their money to Binance Smart Chain faster then you can say CZ! ...and Ethereum will be a ghost town.
I know some might feel, this isn't possible.
Really? That will never happen. We love our decentralized western civilization platform!
Yeah just as much as we loved our western factories and western workers...
Right up until we moved all their jobs to China and orchestrated the second largest transfer of jobs and manufacturing capacity in a 100 years, changing China into the biggest producer of goods used in the Western World.
Yeah ... and unlike the current Ethereum versus Binance Smart Chain rivalry, the governance situation in China is not in doubt, but it didn’t stop the move and all those once bustling factories in the West whose workers never thought would shut down, shut down and became...
...ghost towns.
I suspect your probably thinking you should look up MySpace in Wikipedia right now.
Shortsegments is a writer focused on cryptocurrency, the blockchain, non-fungible digital tokens or NFTs, and decentralized finance, where finance meets technology.
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