Ethereum was built to draw value away from BTC and enrich the insiders. When this become obvious to the crypto community, it will be a blow up that's bigger than Mt. Gox and FTX combined.
Two elements of the tokenomics make this obvious.
- Soon after Ethereum was launched, there was a hack in the TheDAO project, which resulted in the loss of several million in ETH. Technically, it was legal operation according to the faulty rules of the smart contract. Instead of honoring the error, it was decided to do a hard fork to reclaim the funds. This shows that Ethereum is not an immutable blockchain and major changes can be implemented at a whim.
Source: https://coinmarketcap.com/alexandria/article/a-history-of-the-dao-hack
- About 60% of premine was given to insiders. The move to PoS gives these insiders even more influence on the network and will ultimately lead to a very centralized network.
Source: https://www.galaxy.com/research/insights/breakdown-of-ethereum-supply-distribution-since-genesis/
When you look at the dApps that are built on Ethereum, they are almost all exchanges or NFT platforms. They are the only apps that can survive because they can afford to pay the high fees. Even with the lower fees that come with the move to PoS, I doubt that any useful apps will be developed outside of finance.
Therefore, Ethereum is not a smart contract platform that will replace the internet. And in my opinion, layer 2 solutions are worthless if the underlying layer is deeply flawed. Show Less
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