Ethereum News

Bainance CEO: Ethereum is for the rich, but they will soon be poor!


Changieng Zhao, CEO of Bainance Exchange, referring to Ethereum’s high fees, said that Ethereum has become a blockchain for the rich and he no longer uses it.

to the the report In a recent tweet, Cryptopotito Zhao referred to commissions as Ethereum’s “Achilles’ heel,” adding that only rich people can use Ethereum for business. He wrote in this tweet:

Ethereum is now a network for the rich, but they will soon become poor.

Since the beginning of 2021, the average Ethereum transaction fee has increased in line with the sharp rise in Ethereum prices. The average has risen from $ 5 to about $ 15. According to ycharts data, four days ago, Ethereum’s average fees were as high as $ 40.

Average Ethereum Transaction Fee
Average Ethereum Transaction Fee

This number is only for normal network transactions, while DeFi traders and profiteers deal with commissions sometimes above $ 100. The important point is that these traders deal with these platforms on a daily basis and have to pay such a daily amount.

In another tweet, Zhao stated that he no longer uses the Ethereum network. Bainance Exchange is developing two projects that will compete directly with two of the largest existing blockchains.

Bainance China is designed to offer users very fast transactions with a minimum fee. The Bainance Smart Chain Project (BSC) is the company’s second project to enable users to execute smart contracts. This chain has been described as cheaper and more efficient than Ethereum.

The emergence of projects such as Polkadot, Bainance Smart Card, and Cardano is a sign of user demand for Ethereum replacement. Yesterday we also saw Cardano cross the Bainance Quinn and become the third best digital currency on the market.

Like the Bainance smart chain, Cardano is a project that enables the execution of smart contracts. Low cost, high efficiency and security are some of the features of the Cardano blockchain. Of course, it should not be forgotten that Cardano’s design is more complex and it will take longer to reach the final phase.

Ethereum is not idle during this period. The developers of this digital currency are looking to use second-tier solutions to overcome the wage problem until Ethereum 2 is fully operational. According to Ethereum creator Vitalik Butrin, with the full launch of Ethereum 2, the Ethereum network will be able to process thousands or even hundreds of thousands of transactions per second.

Perhaps with the launch of Ethereum 2, the network will once again become a bloc of people who are not rich, and billionaires like Zhao will use it again.

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