Is Ethereum a Hedge Against Inflation?
A big draw for many investors when it comes to Bitcoin (CRYPTO: BTC) is the belief that it could be a hedge against inflation, largely because its supply is finite and capped at 21 million tokens. Ethereum (CRYPTO: ETH), the second-largest cryptocurrency, has never really gotten the same attention on this matter. But lately, there has been more talk that Ethereum could be a hedge for inflation, despite the fact that there is no cap on the number of Ether tokens that can be created. Let's take a look at this new narrative and examine if Ethereum really could be a hedge against inflation.
For several years now, developers have been hard at work on a huge set of upgrades to the Ethereum network in what is being called Ethereum 2.0. The goal of Ethereum 2.0 is to make the network more sustainable, more secure, and more efficient.
In August, developers completed a big part of this upgrade called Ethereum Improvement Proposal (EIP) 1559, otherwise known as the London Hard Fork, which changed the way transaction, or gas, fees are charged on the network. It's fairly confusing, but the network essentially sets a more predictable base fee on transactions to try to lower congestion on the network, although it still seems like the network is struggling to reduce gas fees at the moment.
Source Fool.com
