Ethereum is the second largest crypto currency in the world after Bitcoin. However, there are many people who are still worried about the viability of this coin. There are a number of reasons cited that point to Ethereum being doomed to fail, but are they correct?
Congestion On The Network
A problem that Ethereum has is that its network is congested due to the number of transactions being made by ICOs which fill the blockchain. As Ethereum is the top platform for hosting ICOs, there is little room for other transactions. This has lead to other traders having a hard time getting the transactions through the network.
Many of these traders have stated that there are incredibly long wait times for confirmation of transactions. This is leading to many people losing faith in the longevity of Ethereum as an ICO platform. If there are no changes to the transaction backlog, it does seem that Ethereum is doomed.
The Politics Of The Community
Another issue with Ethereum is the politics of the community. The DAO catastrophe which hit Ethereum highlighted the problems within the community. At this time, the fork-supporting developers decided to hard fork the blockchain without any major consensus on this. This resulted in 2 different forms of Ethereum emerging.
The one version erased the DAO hack while the other chose to keep the hack on the blockchain. For months after this incident, the two factions of the community were fighting each other and calling their version the true Ethereum. This situation has led to many people questioning if the community will be able to make responsible decisions in the future. If there is a lack of trust in the community behind Ethereum, there is no way for it to survive.
There is a lot of suspicion in the crypto currency community in regards to ICOs. Many people believe that all ICOs are outright scams and that the organizers are simply trying to get rich quick. The problem is that there have been scams on the platform and many of them have related to scam ICOs.
The fact that Ethereum is the primary ICO platform has led many to argue that the currency is enabling these scams. These people also state that the only reason Ethereum is so popular is because of the scammers and their need for a platform that helps them.
The Volatility Of The Currency
All crypto currencies are volatile and the price can change drastically in a single day. Ether, the token which powers Ethereum, has exhibited this volatility when it lost $40 of value in a single day. The volatility is further highlighted by the fact that many crypto currency day traders and speculators focus on the coin to make a fast profit.
Of course, it is important to note that market volatility does not mean that the platform is doomed. However, it can make it harder for people to be confident in investing in the coin as a long-term currency.
Is Ethereum Really Doomed?
If you have been looking at crypto currencies for a while, you might notice that many of the reasons people feel Ethereum is doomed were attributed to Bitcoin in the past. Scaling, volatility, scams, and politics have all been concerns raised against Bitcoin in the past and the currency is still going strong. This means that it is possible for Ethereum to share the same success as Bitcoin.
It is hard to determine if any crypto currency is doomed to fail because there are coins which have failed, but there are others that have not. The popularity of Ethereum has given it the edge over some of the other currencies that have failed, but it is still to be seen if the currency can replicate Bitcoins success.