Vitalik: ETH To Be Worthless If Protocol Doesn’t Change

Ethereum Co-founder, Vitalik Buterin has agreed to the claims that Ether is going for a collapse.

As per his official statement on a reddit post,

“In Ethereum as it presently exists, this is absolutely true, and in fact if Ethereum were not to change, all parts of the author’s argument […] would be correct.”

Jeremy Rubin, well known cryptocurrency expert, made certain claims in his article in Techcrunch. In the article, he opinionated that Ethereum has problems in scaling and security of smart contracts, which would eventually cause it to lag, consecutively leading to the collapse through “economic abstraction

By Economic abstraction,Rubin meant that the Gas/transaction fees would start in a token form which wouldn’t be native to the Ethereum network. In use case, a smart contract owner would pay the Gas via tokens native to their contract, based on ERC20. Such a measure would make ETH redundant and it’s value would deprecate via long term.

Vitalik, on the other hand agreed to the article but also stated that Ethereum can survive by evolving and developing themselves.At present Ethereum community is looking at two proposals, to enhance ETH as a native protocol. Which would mean that ETH would be the de facto Gas currency, conclusively creating “the equilibrium value of ETH in this scenario […] is very much nonzero,” in Vitalik’s words.

In the light of this, the crypto community has appreciated Vitalik’s honest approach. A  reddit user, u/Alzerion exclaims, “Isn’t it better to recognize what’s wrong than living in the illusion that everything is going great? He seems humble enough to recognize what’s wrong with [his] own project.”

As of now, Ethereum is looking for solutions. Vitalik’s earlier tweetstorm of 75 tweets explained the history of Proof of Stake(PoS) consensus and roadmap for Casper, Ethereum’s new PoS model. This is being referred to as Ethereum 2.0. Having said that Vitalik himself was unable to provide a certain timeline for the implementation which would result in a period of uncertainty in market.

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