Ethereum is about to explode.
Like, for real.
While we've been focusing so much on the fundamentals,
the technicals are also starting to line up for the next big Ethereum run.
I hope you guys are getting ready because it's finally moon time.
Before we get too much into the future of ETH though,
you need to understand what's been happening behind the scenes that held the price back
from reaching its full potential.
By the time you get done with this video,
you'll understand how the price manipulation happened
and why it's likely not to happen again.
Let's get it!
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Welcome to BitBoy Crypto! The largest crypto channel in all the Interwebs.
My name is Ben.
Everyday on this channel, I show you how to make money in cryptocurrency.
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so you definitely want to join the ranks of the BitSquad.
In this video, we're going to be showing you in depth the battle that has been brewing
between the Ethereum miners, DeFi projects and the Ethereum Foundation
that led to a severe pullback and suppression of the Ethereum price.
We will also be discussing why, as we move to the next phase of the Ethereum bull run,
we won't see the same mix of manipulation and conspiracy.
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So let's get into the weeds here with Ethereum.
There's one thing you have to understand about Ethereum.
It's not in its final form.
In fact, it's far from it.
That will not be until Ethereum 2.0 fully kicks in.
But now, whenever someone use the Ethereum network,
the transaction gets an added fee called a gas fee.
You're basically paying the miners of Ethereum to push your transaction through.
When a lot of transactions are trying to get executed at the same time,
it's a game of pay to play.
So the higher the users bid their gas fees,
the more likely their transactions get pushed through quickly.
And in the world of Ethereum and DeFi, it's pivotal that we get those pushed through ASAP.
When you want to send Ethereum or a token to another address,
these gas fees are quite low.
However, when you execute trades or swaps on decentralized exchanges,
these fees can get enormous.
Back in 2019, we were paying just a couple bucks at max.
Now, these fees have risen upwards of $200.
You have to understand,
these fees are not based on the size of the transaction.
So a smaller trader who's only trying to trade a few hundred bucks
gets pegged with a gas fee sometimes higher than the trade itself.
It just isn't feasible.
So this Russian roulette game of paying the ETH piper has led to many different outcomes.
One of these outcomes is that decentralized finance enthusiasts are being pushed into two different corners,
the haves and the have-nots,
which is contrary to the message of decentralization and crypto.
But let's see here,
who is benefiting from these gas fees other than the miners themselves?
That's right. You guessed it. The usual culprits, the whales.
Ethereum token whales have been crushing it, while retail investors have not only been crushed,
but outright sidelined.
Smaller traders cannot justify these moves,
which means they can't take advantage of some of the insane gains from staking and yield farming
because those are also transactions using gas.
You can see the size of the wallet using DeFi is continually increasing
more and more ETH in those wallets.
These days, to make money in DeFi, you already need to have money,
which is a problem.
So the question is,
have the whales been intentionally keeping gas prices high
in order to keep the good DeFi products to themselves?
Well, there have certainly been accusations thrown around at none other than Binance
for overinflating Ethereum gas prices.
So how does this manipulation work?
Pretty simple actually.
All you have to do is select a gas fee price range that is higher than normal.
If a whale does that at scale over a ton of transactions,
then this could certainly inflate the price of an average gas transaction.
So while we have logically deduced that the whales and DeFi founders themselves
could be manipulating prices down in order to keep retail traders in the game,
it's actually the exact opposite.
They were manipulating gas fees upwards to keep all the money for themselves in DeFi.
And overall, this kept the number of users in DeFi down which could have led to stalled prices.
But now, let's get to the real juicy stuff, the stuff you came for.
Let's talk about EIP-1559.
It's led to an extreme rift between the Ethereum miners and Vitalik Buterin.
Ethereum Improvement Proposal 1559 is a proposal put up by the Ethereum Foundation
that will allow scaling in block sizes through what is called a slack mechanism.
This will aid to keep congestion low and will add to the security of the network overall.
But the contentious part is built around what is called the base fee.
If a block size is below 10 million gas, the base fee is put to zero.
When congestion is high, this will apply.
That's a lot of nerd talk to say that the miners then would not get the total cut of the transaction fee.
The remaining amount of the transaction fee will go to the Ethereum Foundation itself
where it gets burned,
which means deleted from the supply.
Basically, with every transaction under EIP-1559 that comes in times of high congestion,
the overall supply of Ethereum goes down instead of up.
So not only does it address the high gas fees,
it also addresses Ethereum's supply problem.
Since there's no longer a motivation for the miners to select the highest gas fee transactions
because the extra gets burnt anyways,
gas prices should stay around a general expected amount.
While we don't know exactly how effective this will be or if it will actually work,
we do know two things.
No. 1, EIP-1559 has been greenlit in July during the London hard fork.
And No. 2, miners are pissed.
Nothing better than a lot of angry nerds.
In fact, some of the miners are even talking about doing a 51% attack against the network.
The majority of miners are not happy with this proposal getting passed.
You have to understand
the Ethereum network is made up of more than just miners,
but also holders.
And the investors are happy.
The miners are not.
After all, their days of mining are coming to an end anyways.
With the ongoing ETH 2.0 upgrade,
proof-of-work mining is going away by 2023 at the very latest already.
Now, many of the miners feel like this is a slap to their face,
an early execution, if you will.
The most vocal of these miners has been Flexpool,
the No. 24 overall Ethereum miner.
Flexpool has been very loud about the fact they do not want EIP-1559.
Too bad, nerds.
In a world where there's no such thing as bad publicity,
Flexpool has certainly garnered a lot of attention
with their message of
"Stop ETH speculators. Respect the miners."
You can't even with this crap.
What do these idiots think drives the price of Ethereum?
Their math solving skills?
I would have them know, by the way,
I was always the first one done with my math tests in elementary school,
but all I ever got for it was dirty looks.
Speculation drives this entire market. Even our archnemesis F2Pool knows that.
They were the only large mining pool on Ethereum to come out in favor of 1559. Why?
Because we know they like money.
They should subscribe to the channel.
Point is
as Ethereum mining goes away and is replaced by proof-of-stake and validator nodes,
it's in the best interest of Ethereum miners to see the overall price move upwards.
That makes all the ETH they've mined and stacked over the years more valuable.
So let's check and see what Flexpool has been doing about this.
Dumping.
Of course.
I can't make this stuff up.
Look at what happened from the date of the infamous EIP-1559 tweet from Flexpool, January 14th.
After not selling any Ethereum in almost a year,
they started going ham with selling.
No shocker here.
After pitching what can only be known as a hissy fit,
they started trying to harm you, the Ethereum investor.
After almost a year of basically no selling or at least very consistently low amounts,
you can see the ramp up of their selling.
Now, as the No. 24 ranked Ethereum mining pool,
they aren't nearly as powerful as say F2Pool,
but you can see the dumping
right after declaring war on speculators.
Weird, huh?
Not really.
The thing that really makes me mad about this is that they're a North American pool,
not even CCP like the rest.
These are not good Americans.
But a quick look at SparkPool, the largest Ethereum mining pool,
reveals they also increased their selling starting in early January,
slowly ramped it up all through February,
peaking at selling 11,409 Ethereum in one day!
That's millions of dollars.
And remember, with ETH,
it doesn't take nearly as much money moving in order to suppress the price.
But here's the deal.
EIP-1559 has now officially been greenlit.
It's going to improve gas prices and price speculation,
which is good for almost everyone watching this video, I'm sure.
Fierce battle over EIP-1559 has been probably the single biggest contributing factor
to Ethereum underperforming our expectations in February.
With this cleared out, I believe March will be massive for ETH going into mid-April.
Come on, $2500 ETH.
You can't get here soon enough.
What are your price predictions for Ethereum?
Please drop those down below.
I would love to hear your thoughts.
That's all I got.
Be blessed.
BitBoy out.