I hate being right.
I'm just kidding. I love it!
And I've been telling you for the last year Ethereum would outperform Bitcoin.
While all these other YouTubers are out there fighting over the Bitcoin search table scraps,
This is the only channel where you get Ethereum content delivered to you on the regular.
We like Bitcoin.
We love Ethereum.
And many people agree,
which is why Ethereum has been exploding.
Today, we're going to take a deep dive into the secret upcoming change to Ethereum
that only the nerdiest nerds know about.
And--and me of course.
I'm going to tell you what it is and why this will be massive for ETH.
Let's get it!
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Welcome to BitBoy Crypto!
My name is Ben.
Everyday on this channel, I show you how to make money in cryptocurrency.
If you like money and crypto, please make sure to hit that subscribe button.
And if you like Ethereum and want more ETH content, let us know by smashing the like button.
I know we can get this one to 15,000 likes.
Also, if you like trading ETH, make sure to check out Bybit.
Right now, we are running our Bybit Bitcoin trading competition.
We may run an ETH comp very soon afterwards.
You can get all the details and a Bybit tutorial by visiting bitboycrypto.com/deals.
In this video, I'm going to be showing you the secret new reason why Ethereum is going to go through the roof.
If you watch this video all the way until the end, I'm going to reveal the best kept secret in crypto right now.
Everyone is so obsessed with the charts.
They can't pick their eyes up to look and see all the cool fundamental building going on with ETH
and the protocol changes.
So, today, we're going to be going over yet another story detailing the prospects for ETH's rise.
And it is rising.
Meeting a new all-time high of $1481 last night.
Now, it did drop,
but many people do believe that $3,000 in the next few weeks is possible.
I've said I believe $2500 by Valentine's Day.
If that happens,
my wife is going to be getting a dozen beautiful long-stemmed black ETHs for Valentine's Day.
Just kidding.
She knows to keep her dirty hands off my crypto.
But in all seriousness, there are tons of reasons why I believe that Ethereum is going to the moon.
You see, there's so much going on with Ethereum.
It is hard to wrap it up into words.
That's why many people believe that Ethereum is going to become the No. 1 asset of 2021.
When are these outlets going to start writing articles quoting me?
The BitSquad knows we've been saying this long before these uppity investment fund managers and news media were talking about ETH.
They're probably getting the idea for these articles from the BitSquad.
Over the last week though, I've discovered yet another reason to be bullish.
If you watched one of our ETH livestreams last week, you would have seen my discovery of the EIP-1559.
I didn't even know that was going on!
It's something no one here on YouTube is really talking about,
but the crypto press is definitely into this.
The Ethereum technicals are so sexy right now
that no one is getting to know her personality,
her fundamentals.
So let's get a little nerdy here with EIP-1559.
And, yes, one of the authors of this proposal is the big boss man himself, Vitalik Buterin.
You have to understand,
while Vitalik may seem like an alien from outer space,
he definitely has a brain like one.
He sees far into the future,
but he also doesn't like to wait, and I get that.
Me neither.
So that's why early on, as early as 2015, only one year after Ethereum launched,
Vitalik already saw and knew that Ethereum was going to need an upgrade.
This upgrade now called ETH 2.0 was originally called the Serenity update.
But long before the Ethereum network clogged in 2017 due to CryptoKitties of all things,
Vitalik knew something was gonna need to happen.
He saw the problems coming.
But ETH 2.0 itself won't solve everything.
One of the pesky problems that people don't like to talk about with Ethereum is it has a scarcity problem.
It's one of those things that can definitely be overcome with demand,
but it's not as scarce as Bitcoin.
And it doesn't have supply and demand built into it the same way that Bitcoin does
with the halving event approximately every four years or every 210,000 blocks.
So what do I mean by this?
While Bitcoin is famously known for its 21 million max supply,
Ethereum has no max supply.
Ethereum only has a circulating supply.
Right now, there are 114 million ETH compared to 18.5 million BTC.
But there's no cap on ETH.
Right now, there are about 7.5 to 8 million ETH created per year.
To me, the most significant part of this new proposal is the burning of ETH to control the supply.
If we're going to have an institutional run of FOMO on Ethereum,
developers must make sure the supply can be maintained.
And EIP-1559 is making sure of that.
So, let's dig a little deeper into what it actually is.
According to a Medium article by David Hoffman,
the two main components of EIP-1559 are that it establishes the market rate for block inclusion
and burns the majority of the ETH in the transaction fee.
This will allow miners to carry on receiving fees which keeps them incentivized,
but the burning counterbalances inflation on the Ethereum network.
Many of the changes that have been proposed to fix these problems
have tended to only benefit validator nodes
or the 1%, if you will.
But this change will help all Ethereum holders.
Burning ETH removes supply,
therefore increasing the value of the remaining ETH.
It's the same concept staking is built off of.
In addition to the burning though,
there's another purpose,
which is to control the market rate for block inclusion.
This is done through something called a slack mechanism.
And this is pretty cool. When I looked into this, I really liked it.
Just keep in mind,
block sizes are an extremely crucial element for speed.
In fact, this is the entire reason that Bitcoin Cash forked off from Bitcoin
and eventually why Bitcoin SV forked off from Bitcoin Cash.
None of them could agree on the size of the blocks.
The bigger the block, the faster the transaction.
Now, if this is the kind of thing that interests you,
we do have a big video on Bitcoin Cash coming out this week.
We get a lot of questions about it.
But the slack mechanism in EIP-1559 allows for bigger blocks.
"Sometimes."
When there's a ton of congestion on the network,
just like there was in 2017 with CryptoKitties or over the last summer with the DeFi and NFT craze,
the blocks will be bigger.
Basically, the blocks will be adaptable based upon how clogged the network is.
Pretty cool fix if you ask me.
Along with this mechanism and the burning,
these changes will give better awards and confidence to the miners,
which will have an overall beneficial effect to Ethereum.
This will help to secure the network and give it a higher level of stability.
But not everyone is a fan of these changes.
Some miners do not like this upgrade and, in fact, they tried to stop it already.
So the point is this is not 100% official yet
mostly because the two largest Ethereum pools,
SparkPool and F2Pool,
have not yet given their decision to support or reject EIP-1559.
Nine smaller pools have banded together and while right now they make up a seeming minority,
they're a loud minority,
making a lot of noise about why this upgrade is a bad idea.
While SparkPool has not officially given their support or dismissal of the proposal,
they did retweet one person's negative opinion and said, "Worth reading,"
implying there is a conversation to be had here on the subject.
Now, before the last year,
I would have told you that it's okay to listen to both sides of an argument,
but clearly social media has proven to us recently that only one side of an argument is worth listening to.
So be careful disagreeing with the majority or you may get banned,
which is why we are going to be putting out a special video on decentralized social media
and how Ethereum can solve all of the ongoing censorship problems here pretty soon.
Personally though, when it comes to EIP-1559,
I'm not a nerd,
so I don't mine crypto.
Like it makes much more sense to just buy it
than spending a ton of money to get started with mining equipment
and just to barely make a profit over 5 or 6 years.
I would rather take that same amount of money
and just invest it into crypto.
Sell tops and buy bottoms.
You'll come out way ahead doing that.
So, I'm not concerned with the inner working politics of mining.
They act like hashrate is their precious.
But here's what I'm for---
controlling the ETH supply.
This could eventually be the Achilles heel of Ethereum in the future if it isn't worked out.
Making ETH deflationary instead of inflationary needs to be a big focus for the network.
And in my opinion, EIP-1559 begins working toward that goal, so I'm all for this.
But drop me some comments down below and let me know if you're for or against
or don't care about this proposal.
The bottom line is burning ETH should pump our bags and that's something we all want
and need if ETH is going to end up hitting $27K this year.
Don't forget to smash the like button if you want more ETH content on the channel.
That's all I got.
Be blessed.
BitBoy out.