Currently growth of cryptocurrencies (Including ETH) is solely based on what the market thinks it’s valued (The most similar asset to compare it to would be gold). Sadly, the original vision of Satoshi Nakamoto has not come into fruition in any of the major cryptocurrencies.
The original utility of BTC was to become a medium of exchange. Today, the ‘utility’ of BTC is to primarily be used as a store of value.
The move of Ethereum from proof of work to proof of stake fundamentally changes the way we can derive its value. You can break it down the following way:
ETH can still be considered a store of value just like BTC
ETH can be staked to validate transactions and generate income
The development of Sharding, if successful, will allow Ethereum to become a medium of exchange, just like a major currency.
Currently growth of cryptocurrencies (Including ETH) is solely based on what the market thinks it’s valued (The most similar asset to compare it to would be gold). Sadly, the original vision of Satoshi Nakamoto has not come into fruition in any of the major cryptocurrencies.
The original utility of BTC was to become a medium of exchange. Today, the ‘utility’ of BTC is to primarily be used as a store of value.
The move of Ethereum from proof of work to proof of stake fundamentally changes the way we can derive its value. You can break it down the following way:
ETH can still be considered a store of value just like BTC
ETH can be staked to validate transactions and generate income
The development of Sharding, if successful, will allow Ethereum to become a medium of exchange, just like a major currency.
I don’t understand the relation to sharding and Eth being a medium of exchange. Can you elaborate?