Ethereum: Vitalik Buterin bets on ETH as a store of value
Vitalik Buterin defends ETH as a store of value and focuses on the security and decentralization of Ethereum, while retaining fee destruction.
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Since the introduction of EIP-1559 in 2021, Ethereum is destroying the base share of transaction fees. When the network destroys more than it issues new ETH, the total supply decreases. This mechanism fueled the thesis of a deflationary ether during the previous cycle.
For Vitalik Buterin, the reasoning becomes fragile when we deduce a floor price. Fee spikes from 2021 to 2023 largely came from crypto-specific activities, like NFT sales. However, if the price of ether falls and users have less capital to spend, the activity and fees destroyed can decline together.
Tokenized financial assets provide, according to him, a demand less dependent on the crypto cycle, but their regular uses lend themselves less to surges in fees.
The co-founder prefers to judge Ethereum on its ability to last. He cites work on security in the face of quantum computing, multi-signature wallets and the possibility of running your own node. He also sees assets issued directly on Ethereum as a way to extend the usefulness of ETH, particularly as collateral for a loan.
In this vision, stability first refers to that of the network and its rules. For Vitalik Buterin, the ability to store and transfer your ether securely constitutes a more solid long-term argument than a spike in fees.
An editorial article. Le Journal du Coin, the first French-speaking news media on cryptocurrency, Bitcoin, and blockchain protocols.
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Machine-translated from French
Why it is marked verified
2 independent newsrooms report this story. Cryptoast published it first, 3 h before the last one.
- Cryptoast9 Nov, 11:48
- Journal du Coin9 Nov, 15:00
| Publisher Journal du Coin (general tier) | +72 |
| Carried by 2 newsrooms | +5 |
| Total | 77 |
Method: reports are grouped by the words of their headline and summary; each newsroom counts once; figures are read from the reports as published. Nothing here is written by an AI.