Why is Ethereum worth money when its total volume is unlimited (why does Ethereum rise to more than 9000)

Why is Ethereum worth money if its total volume is infinite Ethereum why is it worth money if its total volume is infinite? 1、 What is the upper limit of Ethereum There are similarities between the two, but the difference is that ETH cannot be calculated and verified. Due to the fact that the Bitcoin network can process 3 transactions per second, while all other blockchains require a large amount of energy consumption, miners must pay a large amount of electricity bills to ensure network security when excavating blocks; In addition, the price of Ether is determined by the mining machine manufacturer, so there are only two currencies in the market at present – Litecoin and Monero What are the reasons for the significant fluctuations in the price of Ethereum Firstly, Ethereum has the characteristic of extremely high compressibility. It does not rely on the computing power of a single mining machine shutdown, nor does it rely on the operation and maintenance capabilities of a single machine. Its working principle is simple: you can use a computer to mine various digital assets and receive corresponding rewards. When a mining pool provides a certain amount of revenue to everyone, it will automatically purchase a share of computing power for these digital assets. Then, by sending transactions to all participants, they can obtain the commission income of the Cryptocurrency in proportion. If there are not enough resources or costs, this portion of profits will be lost to the entire system, resulting in losses Secondly, the issuance of Ethereum is constant, which means holding a certain amount of ETH will generate a certain amount of token value. The more token holders, the less passive they will be in production. Because with the development of technology, more and more people are beginning to accept Ethereum as a means of exchange. However, for those who are willing to hold or have sold their Cryptocurrency for a long time, even if some investors are considering selling it, it is meaningless not to fully believe in anything they own

The third case is that in order to reduce the risk of using Ethereum for ordinary people, Vitalik Buterin, the founder of Ethereum, recently released a new white paper Ethereum based on proof of equity, saying that its consensus mechanism “fragmentation” is a technical solution that can achieve expansion. According to the developers, “sharding” is essentially an off chain Proof of work process, which allows the creation of any number of data points and final confirmation. This will solve the current problem Ethereum faces: “We assume that everyone should know whether there is a security vulnerability in their account”, which means that if the supply of Ethereum is insufficient, they can only choose to transfer some Ethereum to the designated address. In other words, once the balance in the contract exceeds half of the set time range and the unspent amount in the contract is reduced by more than 50%, then this portion of Ethereum may become no longer useful What are the main reasons for the rise in the price of Ethereum? 2、 Why set the start date of Ethereum 2.0

Why did Ethereum rise to more than 9000

Editor’s Note Hello everyone, I’m Pepe. I won’t talk much about the topic today. What is the use of this currency? It is the most popular token in Ethereum recently. It has risen to more than 9000. However, this is just the beginning, let’s also take a look at what other tokens are like:

1. Bitcoin and counterfeit coins are currently on an upward trend, but if we follow the previous increase, they may still fall a bit

2. In fact, the biggest hot spot of Ethereum this year is DeFi. Although the lock-in volume of DeFi has reached a new historical high, its market value is still growing, and is far higher than the total lock-in volume of other public chains. Some even need to wait about a year or two before they can fully recover their previous valuation level. From the current development of DeFi ecology, it seems that there is still a lot of space to explore the future prospects of Ethereum. Of course, it is also possible that the price of Ethereum may rise to a certain extent in the future, and as the ETH price increases, the market demand for ETH will increase. Therefore, I personally believe it is still necessary to pay attention to its development direction Returning to the market, after opening last night, it did not break through the previous low, but continued to rise and charge up near the 9500 level. Subsequently, it quickly rebounded to the area above 10000. The upward kinetic energy of this wave is clearly insufficient. So yesterday was also a time of catching up, because yesterday’s pullback did not disappoint many people, but rather continued this trend Next, let’s take a look at a few reasons. 1. The balance of Ethereum 2.0 deposit contract address has increased, and these users should have been locked; 2. The increase of Ethereum 2.0 pledge leads to the increasingly prominent problem of Ethereum network congestion; 3. At present, the number of mainstream currencies circulating in the market is relatively small, and almost all Almost all except BTC continue to rise; 4. From the data, the increase of Ethereum 2.0 mortgage has indeed led to a certain decline in the overall network service charges, but it is still lower than the peak reached in 2017

For DeFi, at present, Ethereum has issued 10 pledged assets, including UNI, CRV, SNX, and so on. The value of these pledges has been very considerable; 5. The ETH pledge rate has recently declined, but overall returns are still good

Another thing worth noting is that the number of Ethereum pledges is gradually decreasing, that is to say, LINK and YFI have the largest number of pledges at present. The returns in the past two weeks are about 20%. If the current yield is used, the total value of ETH may also be reduced by half. In addition, from the perspective of Ethereum Daily Life, it is constantly breaking the record, which also proves that the market demand of Ethereum is gradually developing towards a higher direction; At present, the DeFi field is still a relatively young market,