Why doesn’t Ethereum rise (why Ethereum was dug out)
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Why doesn’t Ethereum rise? Why doesn’t Ethereum rise? There are three reasons: First, the price of Ethereum plummeted; Second, Ethereum network congestion and high transaction costs
First of all, Ethereum has continued to decline in the past few days, falling from a low of about $4 on June 30 to below $3 at the lowest level. This decline is mainly due to the fact that miners’ incentives for blocks dug by ETH have halved. However, the current price of ETH is still very high. If investors want to invest in ETH, an important factor must be considered is the competition between miners and exchanges. Because mining itself is a long-term industrial activity, it is very common for many mining machine manufacturers to choose to shut down, but for these companies, the market value of Bitcoin is far less than its market value. For those who wish to own Bitcoin, they are more willing to use it as a means of storing value or a medium of exchange. Therefore, the reason why Ethereum cannot rise is because Ethereum has not been bought in large quantities The main reasons why Ethereum has not fluctuated violently in the hot market include: 1. The deflation model of Ethereum has caused a continuous increase in supply. 2. The significant halving of Ethereum issuance has led to the depletion of market liquidity (low circulation); 3. The arrival of the “copycat season” has led to some token prices gradually rebounding after significant adjustments (such as XRP), but the development speed of such projects is still very slow. Why is Ethereum dug out? Why is it “dug out”
In Cryptocurrency, Bitcoin, Litecoin and Ethereum are all implemented through blockchain. But the digital assets on the Ethernet chain are different – its code is managed by a centralized system, so the operation mode of this system is different. Because these blockchains are networks maintained by miners, and Ethernet operates in this way: nodes in the network generate blocks based on their own algorithms and broadcast them onto the internet; This enables the network to verify transactions and complete the processing of calculation results without sacrificing security; At the same time, due to the fact that the entire blockchain system is a decentralized system and has its own independent security guarantee system, it also lacks any security guarantee or mechanism to protect users’ funds, making it unable to operate normally
Theoretically, if users want to use smart contracts to create Ethernet coins or other tokens, they need to send Ethernet coins to mining machines (such as Bitmain), and then add some new functions to the Ethernet chain, such as transaction confirmation. But this method is not suitable for ordinary people to use, as it will make it easier for developers to enter the market and also reduce their participation costs. So when you put ETH in your wallet, you can directly take it out for exchange and trading with other people’s exchanges.
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