Is This 1 New Risk a Reason to Sell Ethereum Right Now?
If you haven't sold your Ethereum (CRYPTO: ETH) yet despite its decline of about 40% so far this year, you're almost certainly convinced of its long-term utility and there are plenty of reasons to support that thesis.But if you're holding this coin for the long haul, you should be aware of one insidious risk in particular that's quickly emerging. It's an issue that's probably significant enough to encourage some investors to sell their holdings right now. Let's evaluate this new threat to see if that's a smart move or not.As you may know, for each transaction processed on Ethereum's network, the transactor must pay a "gas fee" with the blockchain's coin, Ether. As of noon on May 1, the average gas fee to make a swap of one token for another is $1.15 on average. The majority of each gas fee gets burned -- in other words, destroyed, removing coins from the total supply.Continue reading
If you haven't sold your Ethereum (CRYPTO: ETH) yet despite its decline of about 40% so far this year, you're almost certainly convinced of its long-term utility and there are plenty of reasons to support that thesis.
But if you're holding this coin for the long haul, you should be aware of one insidious risk in particular that's quickly emerging. It's an issue that's probably significant enough to encourage some investors to sell their holdings right now. Let's evaluate this new threat to see if that's a smart move or not.
As you may know, for each transaction processed on Ethereum's network, the transactor must pay a "gas fee" with the blockchain's coin, Ether. As of noon on May 1, the average gas fee to make a swap of one token for another is $1.15 on average. The majority of each gas fee gets burned -- in other words, destroyed, removing coins from the total supply.
