Notes before buying Bitcoin dip

Nobody wants to buy Bitcoin at the current price because maybe tomorrow will drop even more and then they will buy. But sometimes there is no such thing as ‘tomorrow’.

Traders often check CoinMarketCap every day to see if the price of Bitcoin will drop any more and make a decision to buy or wait.

We will show us the bigger picture, broken down by deals: over 10%, 5%, 3% and 1%. Accordingly, how far should players wait for Bitcoin to drop to buy? And which strategy has brought the biggest profit since the beginning of the year?

Number of Bitcoin purchases versus a discount

Suppose, you are a conservative investor with large capital and can buy 1 or 2 Bitcoins at the same time, but only ‘buy low’ (dip) and in this case the low is a 10% decrease or so. up from the price of the previous day. To you, “-10%” and the market in a sea of ​​blood is an opportunity to buy, not sell.

So in 2020 with the lowest of $ 3,800 and the highest of $ 12,300, how many purchases will you have?

This year, Bitcoin is down more than 10% from the previous day’s price in just 2 days March 12 and March 13 due to Dark Thursday. If you buy 1 Bitcoin on these days, which is 2 Bitcoins in total, the average purchase price will be $ 5,684, compared to the transaction price at the time of writing is $ 10,749. Thus, profits of more than $ 5,000 per coin!

Note, if your risk profile only allows to buy Bitcoin if it falls by more than 7.5%, then there is only 2 chance because daily Bitcoin only drops 2 times exceeding 7.5%.

Let’s say you are a market player and only buy Bitcoin if it drops more than 5% between 2 days, allowing a few transactions to make a profit, but not so much that it makes you lose your mind. How many times do you think you will buy? Even though people warn the BTC market to be over volatile, you have only made 7 transactions out of 270 since the beginning of the year, which is 2.7% of the year so far.

Just 7 days out of the year, Bitcoin is down more than 5% from the previous day’s price: 5 times from March 8 to March 16, on May 10 before the halving and earlier this month on September 3. The average purchase price is $ 7,510, compared with the current transaction price of $ 10,749, which means a profit of more than $ 2,700 per visit.

However, because you buy more times, the capital will be lower, so instead of buying the entire Bitcoin, you buy half each time. This option yields a final profit at $ 3,180 and if you buy 0.5 Bitcoin each time, you will get a final profit of $ 11,140.

Let’s say you aim for a quick turnaround but invest a smaller amount each time. The risk profile only allows to buy Bitcoin if it drops 3% daily, you would buy 14 times.

These 14 transactions obviously take into account the buys above and a few other days: Feb. 26 drops below $ 10,000, March 28 and March 29 when the price corrects from the March, date April 10, two days before the halving, May 20 and September 4.

The average purchase price is $ 7,800 from a total of 14 purchases, less than $ 2,900 at the time of writing. Next, you will buy a smaller portion of 1 Bitcoin, say 0.25 BTC, yielding a final return of $ 10,130 for the whole year.

Suppose, you are the brave person who dares to execute many transactions, act quite quickly as soon as Bitcoin drops. The risk profile encourages you to buy Bitcoin each time it drops more than 1% daily, how much Bitcoin do you think you will buy? Do you think this type of standard will keep you busy year round, because the market is very volatile?

The answer is yes, but not by much. You will make 58 transactions, that is, 21% of the year to buy Bitcoin. To be fair, this number isn’t much.

Quantity purchased per month

Profits will be pretty low, just $ 1,800 above the average purchase price of $ 8,800 for all 58 purchases on those days. Due to the larger number of transactions, it will end up buying a smaller amount of Bitcoin each time, say 0.1 BTC per order, profitable at $ 10,650 for the whole year.

Which path should I choose?

Year-to-date, based on different risk profiles in terms of frequency and when to buy Bitcoin, the ultimate return would be with a -5% drop. Not only does this limit the number of transactions to 7 (thereby reducing order fees, buying time, and the effort spent researching and executing orders), but also increasing profits by more than $ 500 from any other. any other strategy.

Although each strategy has different points to consider such as the amount of capital invested, the number of transactions involved, the profit limit or the duration of the Bitcoin price chart, in a way, buying Bitcoin is always always better not to buy.

Source: Coinmarketcap

EOS is working hard to break out

EOS price is trading very close to support since April.

Although the upside is very high, a breakdown from this support area can cause a drop in strength due to lack of support below it.

EOS distance and support

EOS turned down in value when it reached its local level of $ 3.95 on August 16. It moved in line with the gradual resistance line through the downward movement.

Currently, the price of the trade is very close to $ 2.45 of the zone support, above which it was traded during April.

On October 7, the price as though started to break down, strongly moved above the descending resistance line to reach a high of $ 2.9, which represents a 20% gain from the intraday opening price. However, the higher price could not be sustained and the daily bar was completed with a long upper shadow.

EOS symbols / USD Daily | Source: TradingView

The indicator techniques within the daily time frame are bullish. The Stochastic RSI has created a bullish and rising streak. The MACD also started to go up after forming a bull run but has not yet entered the positive territory.

The indicator RSI, however, remains below 50 and is not making any gains in price.

EOS symbols / USD Daily | Source: TradingView

Margin trading

6 hour chart for moving positions in the $ 2.60- $ 2.90 range.

The top $ 2.60 zone acted as support, before a breakdown set the price at $ 2.40. Up to the next move is used to verify the $ 2.60 is the resistance and create a double bottom near $ 2.40.

During the aforementioned October 6 rally, the price retraced the $ 2.60 zone and moved up to identify the $ 2.90 zone as resistance once again. At the point of writing, EOS is back in the $ 2.60 zone, possibly to confirm it’s supported once again.

If the price continues to trade above $ 2.60, then it’s very likely that the bulls will make another attempt to climb above the $ 2.90 range. This is also give up the regression on the range of remake in the before section.

EOS / USD frame icon 6 time | Source: TradingView

The breakout down under the area support or drop up on the acircration distance will tend to determine in the future.

A breakdown can bring the nearest support price at $ 2.10, while a breakdown can bring the price to $ 2.90 – $ 3.50 again.

EOS symbols / USD Daily | Source: TradingView

EOS / BTC

Trader CryptoDonAlt has compiled a symbolic EOS / BTC showing a sinking impression, according to what he believes could be the start of a new trend.

Source: Twitter

Similar to the EOS / USD pair, EOS / BTC rallied sharply throughout October 7. However, resistance was at 25,600 satoshi and produced a long wick before falling again.

The volatile price of EOS / BTC seems to be decreasing relative to its USD pair. Although this state pump helps the EOS / USD pair to recover a small zone of support, it only serves to confirm the resistance zone of the EOS / BTC pair.

Moreover, the missing support under the current level may be can be the price down down 21,000 satoshi – not per zin from year 2017.

EOS / BTC Daily Chart | Source: TradingView

Disclaimer: This article is for target information only, not investment. We are not responsible for your advice.

Can XRP price reach $ 100?

A new Twitter poll conducted by Ripple fans nicknamed XRP_Cro reveals that the majority (72.4%) of XRP investors believe that the fourth largest cryptocurrency will rise above $ 100.

Source: XRP_Cro

A new poll that targets the XRP community and includes more than 1,000 participants found that 43% say they plan to sell some or all of their XRP holdings for around $ 100. 39% say they want to sell between $ 10 – $ 50, while the remaining 18% say they want to sell between $ 3 – $ 10.

On the question of which crypto assets they think will deliver the greatest return on investment (ROI) in the next bull cycle, 77.9% have chosen XRP, while 15.7% bet on the governing protocol. supply chain management VET. Bitcoin and ETH gained 2.9% and 3.5% of the votes, respectively.

When asked which crypto assets are their biggest holding other than XRP, 65% of respondents choose VET, while 27% choose ADA, 14% favor XLM, and only 4.1% choose ETH .

 

Source: XRP_Cro

The poll also highlighted that 94.3% of respondents consider themselves long term investors while only 5.7% prefer short term purchases. In terms of which psychology motivates their investments and transactions, 74.5% said that optimism and trust, as opposed to fear, accounted for 8.1% of the votes. 12.7% traded out of greed and 4.6% affected by anger and frustration.

Out of all the respondents, 42.9% said that XRP accounts for 100% of their crypto portfolio while 44.3% have staked 30% – 50% of their portfolio on XRP. . The remaining 12.8% require XRP to make up between 0% – 30% of their crypto portfolio.

XRP is paralyzed from a technical standpoint while the sell setup of TD9 is triggered on the daily chart

XRP continues to lag behind the rest of the market after a brief glimmer of hope that has brought prices to current levels by the end of July. will outweigh Bitcoin and Ethereum, then a sell setup that is activated on the daily timeframe could cause it to drop in price.

XRP is paralyzed

Throughout the past month, XRP has struggled to gain any sustained momentum as it fluctuated between $ 0.22 and $ 0.26. The upper boundary of this range is quite harsh, with every visit here denied.

One analyst believes XRP is paralyzed from a technical standpoint, with a lack of buying pressure not allowing it to match the dynamics seen by the synthetic cryptocurrency market.

He is currently looking to ease his long positions as soon as the cryptocurrency reaches the next key resistance level.

“This dumb thing moved 2% while everything moved 10%. I… hate this coin and want to sell the first resistance. Everything moves exponentially in comparison to XRP. It was paralyzed. ”

Sell ​​setup of TD9 trigger on XRP daily chart

There are hundreds of technical analysis indicators available to analysts and traders – some are new and customized while others have been around for decades and built with financial market icons. .

One such tool is the TD Sequential indicator, one of the most accurate of all cryptocurrencies, TD Sequential stands for Tom DeMark’s name, TD Sequential usually has 2 components – TD Setup and TD Countdown. The first phase of TD Sequential starts with TD Setup and has a total of 9 counts (TD 9). After 9 counts, at that point the price will stop, either retrace or reverse exactly to that level. But that is also the point where TD Sequential begins a second phase called TD Countdown and is counted 13 times (TD 13). When the 13th count is completed, at that point the price will reverse or just a small recovery.

It has successfully cut some Bitcoin tops and bottoms and performs well in altcoins and traditional markets. The indicator offers a sell setup after a series of candlesticks closes in response to a set of specific requirements.

TD9 sell setup triggered on XRP / USD daily | Source: TradingView

Usually, the sell setup of TD9 comes after a series of bulls. In XRP, however, the gain is just enough to trigger TD9, but only at a low level.

Most of the price action in XRP / USD is sideways on both the daily and weekly charts. The lack of a powerful higher thrust has resulted in what is known as an “imperfect” setup.

Only when a higher level is established above 8 or 9 candles will the setup be considered “perfect”.

Weekly chart

While there is enough gain in the daily price chart to trigger a sell setup, the weekly timeframe miniaturization shows how stagnant XRP has been trading.

There are currently a total of 6 weekly candles whose real body closes within the 6% range. Usually when sideways properties for a long time, a big decisive move will result.

XRP / USD weekly trading range | Source: TradingView

A strong move upwards will complete an inverse head-shoulder pattern on the weekly timeframe and begin to form an even larger right shoulder on the monthly timeframe.

For now, one thing getting in the way is the sell-daily TD 9 setup, which is most likely the start of a deeper correction. However, due to prolonged sideways and imperfect selling setup, higher gains cannot be ruled out.

Dislaimer: This article is for information purposes only, not investment advice. We are not responsible for your investment decisions.

Bitcoin SV activity increased 761% ahead of the CoinGeek Live conference

Bitcoin SV users seemed very excited about the CoinGeek Live conference.

Active addresses and the number of transactions on the Bitcoin SV network have seen staggering growth in the two days ahead of this week’s CoinGeek Live conference in New York.

Jimmy Nguyen, Chairman of Bitcoin Association

The number of active Bitcoin SV addresses increased from 110,000 on September 28, to 947,400 yesterday.

That’s a staggering 761% growth in the two days ahead of CoinGeek Live, which kicked off at 9am on September 30, New York time to October 2.

The spike in active addresses has sparked astonishment on Crypto-Twitter. Bitcoin SV opponents Craig Wright and Arthur van Pelt, re-posted SirToshi’s chart to draw attention to the fact that Bitcoin SV managed to break through the Ethereum network in the midst of the DeFi boom. He said sarcastically:

“Seems reasonable. I think organic growth. It has nothing to do with CoinGeek Live that I bet on.

Bitcoin influencer ‘Holdlonaut’ replied with an emoticon facepalm.

Transactions on the Bitcoin SV network have more than doubled over the same period, from 715.6 thousand to 1,751 thousand yesterday. That was 145% growth in the 48 hours prior to the conference. Meanwhile, the average transaction value decreased by 2/3 over the same period.

However, it is possible that the spike is just a coincidence as the network sometimes sees some unusual activity. Active addresses soared to more than 1 million shortly on June 24, and transaction volumes soared to $ 5.5 million on July 10.

The CoinGeek Live Conference is primarily an online event and features speakers including nChain’s controversial leader, self-proclaimed Satoshi Nakamoto Craig Wright, Bitcoin Association President Jimmy Nguyen and Fundstrat Global’s managing partner Thomas Lee.

In his opening speech, Jimmy Nguyen said that Bitcoin SV had incentives to discourage bad behavior and noted that Bitcoin’s whitepaper initially mentioned the word “honest” 15 times.

As reported by CoinGeek, Bitcoin SV currently processes more than 2,800 transactions per second on its main network and is aiming for 50,000 transactions per second in the near future. The upcoming Teranode enterprise-class protocol aims to have a 1TB transaction block.

Jimmy said that Bitcoin SV is “the basic set of rules for the entire network and is reinventing the internet”.

In some related news, the Supreme Court of Norway has rejected the appeal of Craig Wright’s jurisdiction. Plaintiff Satoshi tried to sue Hodlonaut for defamation in the UK but will now have to go through Norwegian courts.

Hodlonaut said the court awarded him $ 6,000 in other costs over $ 60,000 in costs that were awarded.

Is the current trend of LTC Up or Down?

Litecoin (LTC) price fell below critical support but recovered shortly thereafter. While short / medium term rallies are expected, it looks like the price has started a downtrend.

Take back support

Litecoin’s price has been down since August 17, when the price was trading at $ 68.94. The price hit a low of $ 41.66 on September 21.

Major areas of support and resistance are found at $ 48 and $ 64, with minor resistance at $ 54.

Though it initially fell below the $ 48 support zone, it continued to move up and regained it. As long as the price is held above $ 48 it will continue to go up to $ 54 and possibly $ 63.

Technical indicators on the daily timeframe are bullish, providing support for this proposed rally.

MACD is rising and in the positive territory. RSI is rising and above 50. The Stochastic RSI has generated a bulish cross and is moving up.

Hence, the price will rise to the $ 54 level and possibly higher. Lower timeframes need to be looked at to determine exactly how the price will rise to these levels.

Try to overcome resistance

The 6-hour chart shows the price is attempting to break through the minor resistance at $ 51, above which it has not been traded since September 5. This is the third attempt.

However, the MACD is declining and the RSI has formed a bearish divergence. This shows that a drop to the $ 48 level is probable before the price is likely to move up.

Besides horizontal resistance and support levels, there is no clear trading structure or pattern.

LTC wave count

Trader TheEWguy has outlined the LTC chart, which shows a long-term decline that could bring prices down to $ 9.

In Bitcoin Magazine’s September 18 LTC analysis, we stated that:

“If this is the exact number of waves, the current movement will be sub wave 4 (black), then the price will drop again.”

Indeed, the price fell once again, reaching a low of $ 41.66 on September 21 and completing wave 5 (shown in blue below). While it seems too early to target $ 9, it looks like the price has started a bearish impulse after the August 17 highs (marked in red).

Before doing so, it appears that LTC has completed its A-B-C (black) correction, hinting at the possible initiation of a bearish momentum.

If true, the price has already started an A-B-C correction (in blue), which will end near the small resistance zone mentioned above of 54.

The $ 54 zone coincides with both the 0.5 Fib retracement level of the entire down move and the 1.61 Fib level of wave A. After that, the drop appears to be the most likely scenario.

Conclude

While the LTC price is expected to rise to $ 54 and possibly a bit higher, it’s likely that the long-term trend is down.

Charlie Lee – Litecoin is moving to private money (privacy coin)

Litecoin (LTC), Bitcoin’s most famous and oldest hard fork coin, is focusing on one new feature: privacy.

The blockchain industry’s subdivision of “private money” – with embedded technology that protects identifiable information from the public view – is becoming one of the hottest spots this year. One of the largest privacy coins, Zcash (ZEC), which offers protected transaction capabilities, has nearly tripled so far since the beginning of 2020, while Monero (XMR), using one techniques called “ring signatures” to obscure the sender’s and receiver’s data have also doubled.

Litecoin founder Charlie Lee said in a recent interview with Coindesk that the project is now looking to adopt privacy-enhancing features, which he finds increasingly appealing to crypto users. . Improvements are being tested and are expected to upgrade to the mainnet next year.

If the effort succeeds, it could put a little bit of enthusiasm into a project that is lacking momentum in the cryptocurrency market. Litecoin is up 21% this year after rising 38% in 2019, less than bitcoin’s 60% annual gain and its own 94% gain last year.

“I want to make it so that users don’t have to worry about giving up their financial privacy using litecoin,” Lee said. “Even if you don’t do anything illegal, you don’t want people to know how much money you have or what your salary is.”

An innate feature of blockchain technology is that the transfer of cryptocurrencies over computer networks is often visible to anyone with Internet access, making it easy to track and monitor specific wallet addresses – and sometimes traces those addresses back to identifiable entities.

So digital asset developers have been working for years to invent new ways to preserve blockchain’s advantages – the ease and speed of money transfers without banks as intermediaries – without apparent transparency.

Such features become even more desirable as regulators and law enforcement intensify oversight of crypto trading and compliance with tax and anti-money laundering rules. .

Lee, a former software engineer at Google and Coinbase, who led Litecoin, is a closely watched entrepreneur, partly because his experience dates back to the early years of cryptocurrencies, after bitcoin came out. eyes in 2009.

Litecoin is often referred to as the silver versus the gold of bitcoin, and it has been used historically as a basis for testing technologies that would later become the backbone of larger blockchain networks, including bitcoin. The network processes new blocks of data 4 times faster than the Bitcoin system, but its smaller size makes it less secure.

New security features are designed to work in line with the increasingly stringent compliance of crypto exchanges with global regulators.

Litecoin is relying on a technology called Mimblewimble, which helps reduce the amount of data that is publicly visible on the main blockchain network, through the use of expansion blocks that hide inputs and outputs.

It remains unclear whether regulators will proceed to restrict the use of security features that can be used to conceal illegal transfers or tax evasion.

Both Zcash and Monero, including direct privacy on the protocol, have faced legal pressures. Europol, a European Union law enforcement agency, recently declared privacy technologies, including privacy-focused coins, the leading threat in criminal assessment. organized crime on the Internet.

In 2019, exchange Coinbase delisted Zcash in the UK without giving a reason, but speculation immediately focused on the digital currency’s identity protection features.

For Litecoin, this could be another opportunity to differentiate it from Bitcoin, which has already attracted the attention of many cryptocurrency traders as a hedge against inflation.

Lee told news agency CoinDesk during a video chat: “I don’t think bitcoin will follow this path of what we’re doing, as it’s a bit drastic. In other words, litecoin has a lot to prove. “

Justin Sun continued his efforts to draw the spotlight for Tron

Justin Sun pointed out that there were 3,000 Bitcoins wrapped on Tron. This happened when Bitcoin broke $ 11,000 for the third time this year. But does Tron have a future as an Ethereum killer?

Sun is known to be an excellent marketer, having launched a decentralized exchange (DEX) on Tron after the successful Ethereum-based Uniswap. A few weeks later, after the success of profit farming and token meme, he launched a similar token called Sun.

By the time Sun tweeted Tron-wrapped Bitcoin was gaining in popularity, he received some skeptical responses. Mikel Roberts, a cryptocurrency advocate on Twitter said the idea of ​​Bitcoin wrapped on Tron makes no sense.

Sun also reached out to users wanting to help push Bitcoin on Tron. Tron has seen a significant increase in traffic lately, especially on decentralized apps (dApps).

Now with more than $ 616 million in Bitcoin wrapped on Ethereum, Sun is here again. Just like a person using Bitcoin wrapped on Uniswap, someone can use Bitcoin wrapped on Tron’s JustSwap.

Sun used DeFi to push Tron up for months and that paid off. Some see dApps as a way to revolutionize human relationships with technology. The leader of this new wave is Ethereum, which has seen a staggering increase in usage over the past few months.

Unfortunately for Ethereum, the terrible fees caused by the network congestion with dApps have directed users to other networks. This gave Tron a chance to shine. But when the ETH fee decreases the light will fade away.

“DeFi ecosystem transaction volume in Q3 2020

Trading volume increased by 2,577%.

TRON’s DEX portfolio holds 41% market share in total volume.

The dApps helping the directory grow is JustSwap ”.

The second most popular blockchain

The third quarter of 2020 was an explosion for DeFi. Trading volume increased by $ 113 billion to $ 125 billion, up 90% from the previous quarter. While Ethereum has around 96% of traffic, other smart contract blockchains have tried to follow the trend of Ethereum.

Tron Dapps | Source: Dappradar

According to Dapprader, a website that tracks data from dApps, Tron and EOS are the second and third most popular blockchains for dApps. Tron took the lead in Q3 with more than $ 1.8 billion in traffic, a modest figure compared to Ethereum’s $ 119 billion. However, Tron’s popularity is still skyrocketing.

Unfortunately, Dapprader has reported that up to 60% of dApps on Tron fall into the category of “gambling and high risk”. A quick look at the top-ranked Tron-based apps reveals some legitimate offerings, but some of the listed candidates are at high risk as Ponzi schemes.

For example: Forever Tron, the Tron No. app. 6 provides a daily return on investment up to 20% for the staking.

Overall on the Tron network, the unique new wallets were up 586% and the gambling / high risk volume on Tron increased by a whopping 2,725%.

Forever Tron is likely to be a high-risk Ponzi scheme

The famous Wink gambling website (which can be staked with a huge profit farming opportunity on Sun.io sponsored by Tron) has a 24-hour trading volume of $ 13 million.

Here comes Sun

In contrast to high-risk dApps, Tron also offers a number of exchanges, including the Tron-sponsored decentralized exchange JustSwap. Justin Sun has launched Justswap as Tron’s answer to Uniswap.

Transaction volume Justswap | Source: Justswap.io

JustSwap appears to have followed Uniswap since its launch, partly supported by the promotion of SUN token mining. In September, Sun.io provided profits of hundreds of percent APY, paid out in the form of Sun tokens.

Some of the more widely used coins are also available on the Tron network. JustSwap users can trade Tron for Tether or Huboi tokens, along with a native USDJ stablecoin. Tron’s volume on October 10 was around $ 8 million, but on September 2 it had reached around $ 367 million. JustSwap still has over $ 100 million locked in liquidity.

Price Tron

Meanwhile, Tron’s price is up about 35% in Q3, from $ 0.017 to $ 0.026 at press time. Perhaps the bulk is due to the high risk and gambling websites.

The interface of Justwap and Tron wallets may mask the difference between Tron and Ethereum, but the user experience is virtually the same. Low transaction costs may be related to Tron’s growth.

Whether or not the increase in volume and price heralds a big profit for Tron in Q4 remains to be watched. Technology and marketing both seem to play a major role in Tron’s massive growth, but things could change if “Las Vegas on the blockchain” is central.

ETH price could move up to $ 420 if this critical level flips into support

ETH and the entire crypto market have been lacking momentum in recent days, with the aggregate market surging last week losing strength after Bitcoin reached the mid $ 11,000 zone.

Altcoin – which was recently able to break above $ 380 – has slipped below this level and may be in a slightly precarious position.

Despite its lackluster price action over the past few days, one analyst is expecting an imminent price surge.

ETH declined major support

At the time of writing, ETH is trading slightly up at its current price of $ 378. This is around the area where it was traded throughout the morning, with the bulls recently losing the support it had before. That’s $ 380.

The drop below $ 380 is technically significant, as this has long been a key level for cryptocurrencies.

Its next trend will likely depend on where Bitcoin is, as King Coin is currently trying to avoid the headwinds being created by today’s stock market crash.

Possibly up to $ 420

While sharing his thoughts on ETH’s current technical outlook, analyst “SmartContracter” explained that he is on track of the $ 420 rise in the near term.

According to him, ETH is currently trying to turn the $ 375 level into support, which could drive it higher.

“ETH: A nice SR flip is forming here, I think we can push higher to $ 420 coinciding with Fib 0.618 before I reassess.”

Bitcoin’s next destination over the next few days will provide some serious insights into where altcoins like ETH are going.

Vitalik Buterin urged users to move to Layer 2 scaling

Faced with recently inflated transaction fees, Ethereum’s founder and lead scientist, Vitalik Buterin, urged users of the second largest blockchain to move to scaling solutions “already available to us. many types of applications ”.

Buterin reiterated his enthusiasm for layer 2 scaling solutions, such as “rollups,” which basically means keeping transaction data on-chain while offloading computation. off the chain.

According to Ethereum’s roadmap to extend the base layer in its blockchain with a technique called sharding that doesn’t seem to be far away, Buterin said users are required to start supporting rollups:

“If you are listening to this and you are an exchange, a wallet application, a mining pool or a professional user – even just the average person – then you should know what rollups are and What do they do. Basically, what is your strategy for moving to them ”.

An explosion in a decentralized financial (DeFi) platform running on Ethereum has caused transaction costs to skyrocket in recent months (transaction fees have increased from 8 cents earlier this year to a high of around $ 14). in September). Meanwhile, pressure from other competing base layer protocols like Polkadot, Cosmos, and Blockstack is growing.

Buterin praised both “optimistic rollup” and ZK rollups, which use zero-knowledge-proof technology (proof-of-knowledge), adding that using these solutions on the existing Ethereum blockchain could increase throughput. transactions from about 15 transactions per second up from 1,000 to 4,000.

“In terms of our current position, for simple payments we are really there, just like you can do ETH transactions in rollups. The challenge is just getting people to get through it. EVM (Ethereum Virtual Machine) application smart contracts generally lag a bit behind, ”says Buterin.

Buterin did not specify when Ethereum will move to proof of stake (PoS), other than saying that phase 0, which involves an independent beacon chain as the basis of the proof, will happen “very soon”.

Test network operator Zinken recently said after a rehearsal in mid-October, a beacon chain would launch within about six weeks.

Looking ahead with PoS, Buterin says manufacturers can expect to reap a net profit as long as they’re online at least 50% -60% of the time. “Some other POS chain coming soon (are) saying that if you go offline for 12 hours, you will be knocked out, I think that’s completely crazy,” he said.

Buterin said the more coins staked, the more resources and complexity there are. That’s because someone staking 10,000 ETH will participate in more parts of the chain than someone staking 32 ETH, for example. I said:

“This is a natural consequence of how sharding works and it’s really a feature we really like. ETH 2.0 tries to be the friendliest to ordinary people.

Buterin is also very enthusiastic about Ethereum’s proposed fee market reform (EIP 1559), which will experiment with flexible block size limits. That, he says, will make the fee a bit less volatile and a bit more volatile block size.

Additionally, Buterin said, since fees are destroyed, or burned, (a really interesting change to the way things work today), “it’s very likely that the amount of ETH is burned from the fees. will exceed the number of shares issued to those who stake ”at current utilization.

Comparing Ethereum in this respect to Bitcoin’s decline in supply over time, Buterin added:

“Over the past three months, if this is the new standard, then after POS the supply of ETH is dwindling.”

“The crazy thing going on here is that if a fixed-supply currency is a good one, then a cryptocurrency with a decreasing supply will be a hypersonic one,” he said.