Chris Burniske, a cryptocurrency investor and placeholder partner, argued that Ether (ETH) is enduring its first traditional bear market, just as Bitcoin (BTC) did in 2014-15.
"For objective observers, the momentum of the network was evident despite the downward price action; those predisposed not to feel sympathy for the vested interests, were blinded by prejudices and lost the bus. it happened at $ BTC then it's happening at $ ETH now. "
Ether price chart, July 2018-August 2019. Source: Coin360
Graph of bitcoin prices, July 2014-April 2015. Source: Coin360
"Unresolved" bottleneck problems
Parallel to Burniske's comments on Ether's price action, the founder of the major cryptocurrency exchange Binance, Changpeng Zhao, also known as CZ, took up the ongoing debate sparked by Vitalik Buterin's statement this week that the Ethereum blockchain is almost full. CZ tweeted August 21st:
"I like Vitalik and ETH, but speed and capacity were a problem a year ago, but now a widely solved problem for the new blockchains (for now). We need to increase the real applications actually used by people, in order to reach again the new problems / capacity limits. Focus on applications. "
In response, Buterin stated that scalability problems are "not solved at all,"Noting that even the most recent semi-centralized blockchains can process transactions per second in the hundreds. EOS, for example – he said – has already faced scalability bottleneck problems.
The co-founder of Ethereum also admitted that he was becoming increasingly pessimistic about second-tier off-chain solutions like Lightning Network – a scalability solution for Bitcoin that opens payment channels directly between users who maintain most transactions off-chain. Therefore, the underlying blockchain is used only to adjust the net results.
Buterin supported that second-level solutions are "difficult to build, require too much application-level thinking about incentives and difficult to generalize".
Technical data and price
Despite Ether's latest bearish fortunes, the results of a recent poll on Twitter's encrypted global community indicated that 54% of respondents believe that Ether will see $ 1,000 again.
That optimism continues to be tested: deep in the cryptocredited winter Tom Lee, a senior analyst at Fundstrat, made the unfortunate call that the ETH / USD would rise to $ 1,900 by the end of 2018.
Meanwhile, Buterin's recent observations indicated that with scalability still a thorny problem as always, the pressure of high transaction costs and the compression of transaction space prevent new partners from joining the network.
To save time, Ether is trading at $ 188, down 4.8% from the day, according to the Cointelegraph Ether Price Index.