What is the pressure point of Ethereum (Ethereum calculation formula and income calculation formula)

<img src='https://img.doulai.com/pic/enpic.php?k=What is the Ethereum pressure point? Imgalt=What is the Ethereum pressure point; The Planet Daily is authorized to reprint In the past year, with the booming development of the cryptocurrency market and changes in market sentiment, investors have turned their attention to Bitcoin and other digital currencies, with the price of ETH being the most closely watched. According to CoinMarketCap data, as of January 4th, the price of Bitcoin was $9250, a decrease of over 60% from its historical high at the end of December 2017. However, due to the recent market turmoil and high fees, people's expectations of Ethereum prices have changed greatly. However, this instability did not surprise some traders. Nevertheless, Ethereum has attracted some attention, because many traders believe that if Ethereum can maintain its position on the public chain ranking top 50 in market value, it may become a huge risk factor. And now more and more analysts point out that this is an extreme situation, where if the price of ETH is less than 2% of the target currency price, then the pressure point is set at a higher level. But at the same time, many people also question why such a range should be set? In fact, fundamentally speaking, these indicators are used to determine whether an asset is safe, whether there is sufficient liquidity and funds to meet the requirements, and must comply with corresponding rules in order to effectively invest. When a project wants to raise funds through its own tokens, what should the project code look like? For example, a decentralized exchange needs to pay a certain amount of fees to buy Ethereum futures contracts. Therefore, in the current situation, each individual transaction on Ethereum has a limit, that is, the so-called "price limit order", which can ensure the safe operation of Ethereum network

Every transaction of Ethereum has certain thresholds to accept these thresholds and bear the shipping costs, which makes the whole system more reliable, and also allows participants to obtain more shares more easily – so in the Ethereum blockchain, users can buy and sell various goods or services like ordinary stocks, instead of using other methods to trade. However, similar situations also occur in traditional financial systems. For example, American bankers often say, “If you are willing to lend money to others, I will lend you a loan. In the current economic environment, this demand seems less obvious, so many institutions are looking for alternative solutions to solve this problem. However, although some companies may consider adopting different methods to reduce their profit margins, there will continue to be new competitors in the future In addition, we know that one of the problems Bitcoin faces is its low inflation level. According to the latest report released by CoinMetrics, Bitcoin has been in a relatively high state since the beginning of 2020

Ethereum calculation formula and income calculation formula

On the Ethereum network, the reward for miners is the block reward between Eth1 and Eth2. If the number of ETHs in each mining pool is 21 million, then this number will account for approximately 5% of total revenue (USDT). According to Coinmetrics’ data, as of now, approximately $2 billion in ETHs have been locked in smart contracts

However, this means that the calculation formula of Ethereum is not reliable: when the mining income of Ethereum is greater than the cost, the miners will automatically provide pledge rewards to the network; On the contrary, they generate profits through transaction fees rather than selling tokens. In addition, it should be considered that the gas price paid by Ethereum for each transfer is far below the market average. Therefore, for Ethereum, gas may be expensive Of course, if you want to purchase ETH in a simpler way, you should also consider the following factors:

First, determine whether a specific asset has sufficient network value to support network activities (such as validators, mining machines, or nodes) The second condition is that there must be a certain degree of network effect in order for it to be profitable Finally, we can take a look at an example in the following figure to prove this result:

If a project party does not have sufficient technical advantages to ensure that users can earn ETH without risk and continuously, then your transaction fees are guaranteed to a certain extent (for example, you can send an ERC-20 token to others), and you can set some restrictions, This ensures that one no longer loses any funds during the trading process, while maintaining a stable investment strategy. (Note: The restrictions here include transaction fees and transaction amounts.)

If a project party has modified or added some new features to these parameters and introduced them into the ecosystem, it may be affected because its transaction costs will decrease, leading to network congestion.

Another thing worth noting is that the Ethereum community is very active and many developers are trying to solve problems

So we know that Ethereum is a completely community driven platform, but it has not been established as a blockchain technology company like Bitcoin

Now, we are trying to implement a Ethereum network protocol in the simplest way. Simply put, we will see this website on the Twitter link above

Then we can see the following picture:

From the surface, Ethereum network is running very well. But as more and more people enter this system, the scale of the entire system continues to expand. We believe that once people begin to utilize these functions, they will become even more powerful. That’s why our researchers have been committed to increasing the price of Bitcoin

However, despite the relatively good price trend of Ethereum, most people believe that the price of Bitcoin will eventually rise to more than $40000 In addition, we will also observe recent news updates on Bitcoin prices and look forward to more price news about Bitcoin.