Is Ethereum Gas really that expensive?

Is the cost of Ethereum gas very expensive?

Why do so many people use such high fuel costs?

When will Ethereum's gas costs return to "low prices"?

This article will answer these three questions from another perspective.

Is the cost of Ethereum gas very expensive?

First of all, is it expensive? It is not scientific to judge by price alone. When we evaluate the cost of Ethereum Gas, the most important evaluation criterion is the value of Ethereum itself, including its ecological value. 

We should know that with an ever-evolving ecology, Ethereum is no longer Wuxia Amon. 

In 17 years, with the huge advantage of 1CO, Ethereum drew a lot of traffic to the Ethereum ecosystem. At that time, there were various projects on Ethereum. But today, let's take a look at the ecology of Ethereum. Various innovative products, such as MakerDAO, Compound, Aave, IDEX, Loopring, etc. Ethereum has grown from a small vendor to a super mall. It's just that we haven't realized or adapted to Ethereum's growth.

The project of interest here is WBTC. WBTC is a Bitcoin asset that standardizes the Bitcoin format to ERC20 and publishes it on Ethereum. In recent months, the total number of WBTC has increased geometrically. 

(The blue line represents the total amount of WBTC)

We can clearly see that the main reason for the rapid development of WBTC is because of the increasing opportunities for Ethereum. At the same time, most Bitcoin holders want not to fall behind Bitcoin when it comes to taking Ethereum. Opportunity, so it is imperative to map Bitcoin assets to Ethereum. 

Why do so many people use such high fuel costs? 

Price filters demand, demand determines value. The price hike caused by congestion is an automatic adjustment mechanism for demand. Higher demand is filtered by an increase in price, thereby reducing congestion, and higher demand also increases the value of congestion, so that prices and demand can materialize. Balance.

Ethereum Gas Charges has made its own choice based on the principle of "user pride".

Hundreds of RMB of transaction gas fees at every turn have discouraged ordinary users, but have also caused various CX and junk projects to abandon Ethereum  . You should know that it is much cheaper to cheat on TRON than it is on Ethereum.

In fact, the rising cost of gas is itself a demand filtering mechanism. The only thing that can survive on a high-fuel Ethereum is a high-value project or one that wants to be a high-value project. The first is money to be paid, the second is willing to pay.

When will Ethereum's gas costs return to "low prices"?

Ethereum's high gas costs will be the norm. 

We can assume that if the low price of Ethereum gas costs were the norm, due to the high quality ecological environment on Ethereum, it would inevitably attract a lot of CX and trash projects to Ethereum. However, Ethereum resources are limited, or Ethereum resources are difficult to meet the requirements of a large number of CX projects and trash.

If Ethereum insists on keeping gas costs low, high-quality project resources will be plundered by junk projects, and  bad money will  soon  generate cash  , which will lead to high-quality projects choosing other public chains in search of better resources. Or build your own public chain. This is also the reason why high-quality projects are difficult to appear on TRON.

    

(Comparison of TRON and Ethereum market value)

 

Two projects with a market value difference of almost 21 times are destined to find that TRON will have a hard time meeting its needs once a high-quality project on TRON develops. At this point, for better development, they need to go to a bigger platform - Ethereum.

Therefore, with Ethereum's continued development and increasing value of its ecological projects,  the high cost of gas is the best screening tool for ecological users and projects. Screening items also filter out users. And filtering makes Ethereum even better. 

Ethereum is gradually becoming a tall building.