THE CONS OF ETHEREUM
Although there are many positive points in Ethereum, the reality is that there are also some controversial aspects of this cryptocurrency. And if we are thinking of investing in this project, it is smart to analyze the disadvantages it has.
IT HAS ALWAYS BEEN SECOND TO BITCOIN
Although Ethereum took advantage of the popularity of the first cryptocurrencies, it is still in second place despite all the advances they present. The price difference with the main cryptocurrency is substantial, and for those who support Bitcoin over other cryptocurrencies, Ethereum does not have the capabilities to beat it in price.
It remains to be seen if all the functionalities that Ethereum brings are enough to outperform Bitcoin. Especially, the latter has been transform more into a haven of value, than a means of transaction.
Scalability is an issue for both Ethereum and cryptocurrencies in general, but at least in the case of Ethereum, solutions are constantly being sought through improvements to its code.
Currently the speed to process transactions in Ethereum is 15 per second, which although faster than Bitcoin (4.6) still has a lot to improve if you want to create an ecosystem of applications and smart contracts on it. Considering how big the network is (about 4x more developers than any other platform), this is proving to be a legitimate roadblock to mainstream adoption.
With Ethereum 2.0 we have the promise that this will be greatly address with a successful implementation, bringing transactions per second up to 10,000. However, the implementation is slow, and there is no clear date to see this done.
ETHEREUM 2.0 CREATES CONFLICTS IN THE COMMUNITY
It’s not that Ethereum isn’t use to conflict (as was the case with DAO), but this major update has create quite a bit of discord within the community, especially among miners.
This is because all the expensive equipment they have invest in would be render obsolete overnight by the move from a proof-of-work algorithm to proof-of-stake. That is why the community is now divide between miners and developers.
Although the roadmap tells us that the implementation of what is known as sharding should come before the change in the consensus algorithm, miners only care about the latter.
RISING PRICE OF GAS
For the blockchain to work there must be a type of commission that rewards people for the work of validating transactions. This makes it possible for smart contracts to work and for ETH to be send and received as well. However, in recent times, and after a monumental rise in the price of ETH. The price of commissions has increased enormously, especially during certain hours of the day. They were so high that in some periods paying commissions was unfeasible for many people. Creating frustration in developers and in people who are dedicate to buying and selling.
Luckily, the new code enhancement aims to fix this. But until it’s 100% implement we’re going to continue to see issues in this area.
PRIVACY IN TRANSACTIONS
Ethereum suffers in the same way as Bitcoin from lack of privacy. Although there is no information about whom the address belongs to. If we use it we can end up revealing who it belongs to.
There are tools, companies and people dedicated to linking this information. Using different techniques that range from analyzing gas spending patterns. When accounts are active, personalizing the address or simply sending a small amount to a transaction to be able to track them. .
If you are wondering if you should invest in Ethereum, that is something that I cannot answer for you. It is a personal decision that will depend on the funds you have, their availability and your investment horizon.
Ethereum is one of the best cryptocurrencies out there today. But there are many people who buy when everything looks positive and sell after months when the markets fall. If you are not going to invest with a long-term heart, cryptocurrencies may not be for you. Since finding the perfect time to buy and sell is a fairy tale, no one ever does. Of course, this is only one leg of the whole thing. And it is also necessary to evaluate the future perspective of this crypto. The new developments and the long-awaited improvement can take Ethereum to another level.
If you think that this is enough to catapult its price, it may not be a bad idea to put some money that you are not afraid of losing that you will not use in the near future. Then wait patiently for what the future will bring us.