Ethereum Price Goes To $0 USD: Can Ether (ETH) Realistically Fall To Zero?
Once the darling of the crypto ecosystem, Ethereum seems to have been going through a rough patch right now. It is not too far fetched to say that ETH price might drop to zero. This is according to several observations by crypto enthusiasts about the technical difficulties the platform is having in scaling.
Earlier this week BitcoinExchangeGuide had reported that Jeremy Rubin, a Bitcoin Core contributor had argued that the Ethereum network’s native Cryptocurrency’s value might go down to zero. Quoting his exact words from the article he said:
“Here’s a prediction. ETH — the asset, not the Ethereum Network itself — will go to zero.”
He went on to say that several problems with the network, including scalability issues, lack of widespread adoption and failure to adopt safer contract authoring practices could lead to the eventual loss of value for ETH. Rubin suggests that there are chances that Ethereum succeeds while its native coin doesn’t do as well.
So, How Will The Ethereum Network Look without ETH?
Rubin would propose that the ETH price will go to zero as a consequence of the Ethereum network thriving. The network might reach a point where it will not need ETH to pay for transaction fees on the network.
“But, if one believes that Ethereum will succeed beyond anyone’s wildest dreams as a platform then the proposition that ETH (as a currency) will go to zero will take a bit more convincing running a substantial share of the world’s commerce securely.”
He explains the use of ETH using a fictional decentralized application called BuzzwordCoin. He explains:
“By default, following a standard ERC-20 Token template, every transaction on BuzzwordCoin will pay gas in $ETH. Requiring every BuzzwordCoin transaction to also depend on ETH for fees creates substantial risk, third-party dependency, and artificial downwards pressure on the price of the underlying token.”
Instead of using ETH, he suggests that every time a BuzzwordCoin transaction is made, a small amount of BuzzwordCoin is deposited directly into the block miner’s address. This amount could pay for the contract execution. This concept is called economic abstraction. The revised contract will not depend on ETH while incentivizing miners at the same time.
Four primary counterarguments must be addressed before Ethereum can follow economic abstracting. Lack of software support, difficulty in token pricing, the existence of non-tokenized contracts and Proof-of-Stake may make ETH integral for the network.
To sum it up, there is a hypothetical situation where the ETH price drops to zero if applications on the Ethereum network can run without the digital asset as ‘gas’ for transactions. This situation is a 180-degree turn from the usual thought that the value of ETH will drop due to congestion issues on the network.
The competitors are ready to pounce on the space left by Ethereum.