The NFT Goldrush Is Bad News for Ethereum
The high cost of gas may fuel the adoption and further development of Ethereum’s competitors
You can’t believe your luck — a coffee shop with amazing coffee, seating, and no line. At first, you’re one of the only few people there but as time goes on the number of visitors starts to increase and increase. Eventually, it becomes impossible to avoid standing in line for half an hour, let alone get a good seat in the coffee shop.
It’s frustrating so you start to look for a new coffee shop, bidding adieu to your favorite niche. Ethereum’s blockchain is running into a similar situation at the moment, as everyone and their grandmother are trying to buy the latest non-fungible token (NFTs). Getting a transaction through quickly is difficult without spending a small fortune.
NFTs distinguish themselves from other tokens like Bitcoin because each NFT within a particular project is unique, whereas each Bitcoin is identical to any other Bitcoin. Often, NFTs are digital art pieces that act as an entryway into an online community. Small pixelated NFTs called Cryptopunks for example, regularly sell for hundreds of thousands of dollars.
Many NFTs cost significantly less to mint or purchase, opening the door to retail investors and tech enthusiasts…
