Ethereum Is Blockchain For The Rich, Says Binance’s CEO

Ethereum is blockchain for the rich, because of the high fees as the Binance CEO Changpeng Zhao noted, but he also said that the rich will soon be poor, in a tweet that we have in our Ethereum price news today.

It now seems that right now is the perfect time for the binance smart chain to shine and CZ knows how to take advantage of it. With the increasing use of Defi protocols, dapps, and applications built on the Ethereum blockchain, overloaded the network and now fees are unsustainable. A few blockchains are emerging as the new ETH killer and CZ is rooting for Binance Smart Chain as the best option. CZ attacked Ethereum in a recent tweet, pointing out that the fees are extremely expensive, saying that Ethereum is a blockchain for the rich and only the wealthy can afford to trade.

ETH is a network for the rich guys now, but soon those guys will be poor. 😂

— CZ 🔶 Binance (@cz_binance) February 27, 2021

Over the course of the year, the average transaction cost on Ethereum catapulted as fast as the price of the ETH coin went from $5 on average to $15 today. A few days ago, the network fees reached an ATH of about $40 according to the chart data. However, this is the price per transaction as the traders operating on the DeFi have to deal with the possibility of paying $100 for every trade daily. CZ didn’t stop here as he said that he won’t be using Ethereum anymore. Binance is developing other projects to compete directly with the two biggest blockchains in the ecosystem.

Binance Chain was designed to enable fast payments and low fees and it will be a direct competitor to Bitcoin because of the narrow focus of receiving and sending funds. The Binance Smart Chain allows for the execution of smart contracts efficiently and cost-effectively than ETH. With the rise of projects like the Binance Smart chain, Cardano, Polkadot, and more, we can only see that there’s an increasing interest in finding a blockchain that is capable of replacing ETH. Cardano ranked third a day ago on the biggest crypto list and dethroned BNB from its position.

ETH2 scaling for data will be available *before* ETH2 scaling for general computation. This implies that rollups will be the dominant scaling paradigm for at least a couple of years: first ~2-3k TPS with eth1 as data layer, then ~100k TPS with eth2 (phase 1). Adjust accordingly.

— vitalik.eth (@VitalikButerin) June 30, 2020

Cardano also wants to execute smart contracts quickly, securely, and cheaply. Cardano has a more complex design and a longer roadmap. Ethereum developers were still working on the second version of the blockchain and according to some, the new blockchain will process thousands of transactions each second so maybe when 2.0 is fully complete, it will go back to becoming the blockchain for the poor guys.