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Nouriel Roubini, a widely recognized economist and professor at the Stern School, said that the decline in the value of Ethereum was expected due to the lack of active decentralized applications (dApps).
"It's no wonder if Ethereum is collapsing, 75% of DApps are crypto-kittens, Ponzi's pyramid schemes and casino games. The other 25% is DEX that nobody uses 99% of transactions on centralized plants. & 99% of cryptocurrencies have already lost 99% of their value. "
Counter Argument
In the early days of the Internet and the web, the vast majority of platforms and extremely simple application websites such as email and data settlement services that could not get anything significant.
With the passage of the decades and the web support infrastructure including computer hardware, cloud computing and drastically improved software, the web has evolved into the basic protocol for data sharing, feeding practically everything that went from video streaming to financial services.
Cryptocurrencies as an asset class and the Ethereum protocol as a decentralized computing network are still in their infancy. Ethereum is able to process only 10 to 12 transactions per second on its main network and, as such, the type of services that dAppas could provide is limited.
Protocol enhancements are implemented at an exponential rate. Vitalik Buterin, co-creator of Ethereum, said that the implementation of second-level solutions Sharding and Plasma could potentially increase the transaction capacity of Ethereum to a million transactions per second, which will be able to support IoT and financial networks. [19659003] Currently, dApps with simple concepts such as CryptoKitties dominate the space and decentralized exchanges of cryptocurrencies are not even remotely in competition with centralized platforms.
However, decentralized computing ecosystems and protocols of smart contracts based on public blockchains such as Ethereum, Cardano and EOS are less than three years old.
Already dApps as Brave Browser, which compensates publishers with a digital currency called BAT based on their traffic, has more than three million users.
The improvement of the basic protocol of Ethereum has allowed the ETH, its native cryptocurrency, to operate as a store of value, together with Bitcoin, the most dominant cryptocur
Given that Brave Browser is a handful of dApp have seen rapid growth in the last year despite the limits of Ethereum in relation to scalability, with the improvement of the basic protocol, dApp will continue to see an increase in the efficiency of information processing. .
Roubini's argument about the long-term decline of Ethereum is based on the premise that dApp stagnate and decentralized systems do not attract the mainstream.
However, a survey revealed half of American millennials are interested in the exclusive use of cryptocurrencies, which would be sensible only in view of the millennial decline of confidence in legacy financial systems.
LINE, and Kakao, the two largest Internet companies in Asia together with Tencent, have created their own cryptocurrency exchanges with the aim of marketing blockchain and dApp technology.
What happens if dApps gain popularity?
If dApps has started to reach the number of active users Brave Browser has collected in the last 12 months, and if the adoption of dApps will increase in the years to come, then the argument of Roubini and others economists on the usability of cryptocurrencies will become worthless.
Featured image of Shutterstock.
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