Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Binance CEO Says Ethereum is For The Rich Guys

Published 02/28/2021, 09:33 AM
Updated 02/28/2021, 10:01 AM
Binance CEO Says Ethereum is For The Rich Guys

Binance CEO Says Ethereum is For The Rich Guys

  • According to Binance CEO CZ, Ethereum has become a blockchain for the rich guy due to the high fees.
  • CZ’s latest tweets have shown that the boundaries are more flexible when promoting Binance’s services.

According to Binance CEO Changpeng Zhao, Ethereum has become a blockchain for the rich guys due to the high fees.

Binance CEO CZ also said that it is the moment for Binance Smart Chain to shine and take advantage of the situation.

While the use of DeFi protocols, dApps, and applications are increasingly made on top of Ethereum, it has loaded the network to the point where its fees are nearly unsustainable. Several blockchains are competing to emerge as the new Ethereum killer. CZ is rooting for BSC as the best choice.

In a recent CZ tweet, he attacked Ethereum, pointing out its Achilles heel: fees. For CZ, only the rich can afford the fees to trade Ethereum:

Throughout 2021, the average transaction cost on Ethereum has catapulted just as fast as the price of ETH (its native token), going from less than $5 on average last year to about $15 today. Just four days ago, the network fees reached an ATH of nearly $40 on average, according to ycharts data.

However, this is the price per transaction. Traders operating on DeFi or yield farming platforms have to deal with the possibility of paying $100+ for each trade they make daily.

CZ didn’t stop there. A later tweet stated he was no longer using Ethereum. Binance is progressing two projects to compete directly with the two most prominent blockchains in the ecosystem.

He also said Binance Chain could enable fast payments with the smallest fees. It would be a primary competitor to Bitcoin because of its narrow focus on transferring and receiving funds.

The rise of projects like Binance Smart Chain, Polkadot, and Cardano is a sign of the growing interest in finding a blockchain capable of replacing Ethereum. Yesterday, Cardano ranked third among cryptocurrencies with the highest market capitalization, dethroning BNB from its recently taken position.

However, Ethereum developers are working on the next version of the blockchain. Ethereum 2.0 will have several layer two implementations. According to some supporters, the new blockchain will process thousands of transactions per second — even hundreds of thousands once fully deployed, according to Vitalik Buterin.

Continue reading on CoinQuora

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.