Joe Lubin Calls Ethereum ‘Ultrasound Money’ as EIP-1559 Launches
The impending deployment of Ethereum’s London Hard fork has given rise to a number of speculations, with some indicating that ETH will flip Bitcoin. One major phrase which has resonated within the Ethereum community is “Ultrasound money.” ConsenSys founder and Ethereum co-founder does not agree less with this, as he shares the same view of Ethereum being an ‘Ultrasound money.’
The phrase contrasts with and is a play on the name given to flagship cryptocurrency, Bitcoin by Bitcoiners who aptly described it as ‘sound money.’ Pointing to the unending rivalry between both communities, members of Ethereum adopted a spin-off- ultrasound money- sort of, on Bitcoin’s name.
Joe Lubin Agrees with ‘Ultrasound Money’ Name
Joe Lubin seems to have justified the name given to Ether. While speaking during a session, the ConsenSys founder noted that the upgrade was part of the larger picture for the network.
This was Lubin’s response to a poser thrown at him at the interview, that bordered on the EIP-1559 whose launch had taken place as of press time. The EIP-1559 will witness a move from current fee structure controlled by miners- especially during periods of congestion- to a base fee structure determined by the network. Aside from that, also prompting the ultrasound money catchphrase is the deflationary mechanism that will accompany the EIP-1559 update.
In light of this, the deflationary mechanism is geared at reducing the circulating supply of Ether. Every transaction after the EIP-1559 deployment will burn the base fee, taking it out of supply forever. Moreover, it is expected that this will have a direct effect on the price of Ethereum, if demand for the asset increases.
There is More Demand for Ethereum, Says Joe Lubin
As per Lubin, Gold’s supply is fixed. Accordingly, the fixed quantity of Bitcoin has earned it the name ‘sound money.’ Lubin added that about $13 billion Ethereum had been locked up for staking in anticipation of Ethereum 2.0, and $70 billion Ethereum stored in decentralized finance protocols- this indicates that there is significant demand for Ethereum.
According to some observers, the London Hard fork will not directly make Ethereum deflationary unless the amount of Ether burned on every transaction exceeds the rewards issued to miners for validating blocks accurately. He noted that the move to the PoS-enabled ETH 2.0 will make this more possible.
EIP-1559 and a host of other improvement proposals including EIP-3554 are primed to be a watershed moment for the Ethereum network. Of much significance as the EIP-1559 is the EIP-3554, which is regarded as a mining difficulty time bomb and will gradually make mining difficult on the network until the move to ETH 2.0 is complete.
Ethereum is now exchanging hands at $2772 a few hours after the 1559 was deployed. The prospects of Ethereum exceed Bitcoin’s. However, Bitcoin has managed to retain market dominance primarily due to its position as the father of all cryptocurrencies. Will Ethereum Flippening ever happen? Certainly, the coming months will reveal.
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