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So, based on what we can find on the internet, most of the transaction is done over blockchains (no matter which you pick) is for speculation purposes.

Since:

  • the transaction fees are based on the network load, this means that (e.g.) ethereum fees are this high just because there are a lot of person trading crypto for speculation purpose
  • the price of the cryptocurrency is based on the value that people give to it (the interest we can say)
  • the more a currency is volatile, the less we are incentivised to use it as a currency (since 10$ in Eth today might be 8$ tomorrow due to its volatility)

Isn't the speculation over cryptos actually bad for the blockchain itself?
I mean, due to the increasing cost of transaction (because of the amount of transaction for speculations) there might be companies that won't integrate blockchains in their project because they are too expensive

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Isn't the speculation over cryptos actually bad for the blockchain itself?

Any native blockchain medium of exchange of unit of accounting must be disconnected from a political currency, like USD or Yuan, as otherwise it would very hard to achieve a global consensus mechanism, where global being working across geopolitical adversaries.

the more a currency is volatile, the less we are incentivised to use it as a currency

This is why for payments you use stablecoins: DAI, USDC, USDT.

Think Ethereum ETH as an equity for the world largest payment network, not as a currency and then it makes sense.

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  • but for most of the website that accept cryptos, they accept btc, not usdt, you would have to go to somewhere like uniswap and exchange them for usdt Sep 29 at 8:44
  • No, you are wrong. Nobody uses Bitcoin for payments anymore. It is all about stablecoins. Your information is five years outdated. Sep 29 at 8:46
  • So why would we need something like bitcoin if it's not used as currency (and it's the only application of bitcoin) Sep 29 at 8:48
  • You need Bitcoin to use Bitcoin blockchain. But nobody uses Bitcoin blockchain because it can be used only for Bitcoin payments. Ethereum, on the other hand, can be used for a lot of else, like issuing out stablecoins. So just sell your BTC and buy ETH, unless you already did so. Sep 29 at 8:49
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I believe it is not an issue because if the price increase so much then transaction fees will go down as per need. And the high amount of transaction creating bottle neck is somewhat resolved in EIP-1559. And still if the organisation thinks the transaction cost it to high for them then, they can switch to parachain like BSC or Polygon.

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  • my point is actually on ho volatile it is... if there would not be any speculation, then the value of the currency would be based only on the network adoption, and so it would be way less volatile Sep 29 at 8:47

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