Counterparty Coin Community Director: Ethereum cannot succeed, it is 100% hype

Ethereum is arguably one of the most popular technologies of 2016. Hundreds of millions of dollars worth of banks and some of the world’s most powerful financial institutions and technology companies have begun adopting the Ethereum network to create smart contract blockchain networks that they claim can be applied to almost every field.

The “Ethereum hype” and speculators’ overvaluation of Ethereum technology are the reasons why Ethereum’s market value has reached $1 billion, making Ethereum the first choice for cryptocurrency or token after Bitcoin.

However, many enthusiasts in the cryptocurrency community believe that Ethereum’s abnormal development and extreme volatility are the main reasons for its spokespersons to hype it up. At the peak of its development, Ethereum’s market value once exceeded $1 billion, but soon fell back to $600 million.

Chris DeRose, community director of Counterparty, explained that the reason why Ethereum could not succeed is simple. First, the concept of smart contracts has been hyped by mainstream media for a long time. Many startups are trying to use Ethereum and other blockchain networks to apply smart contracts to banking systems, ride-sharing networks, and other applications. However, smart contracts are more expensive than traditional data storage methods. More importantly, the banking model based on smart contract applications is very similar to centralized data servers.

Chris says:

"Ethereum will never work. Be very cautious about this project. Ethereum is 100% hype and nothing substantial. We don't need smart contracts. Also, the Ethereum blockchain is too expensive to maintain. I've spent a lot of time studying Ethereum. Can you give a case for why we need smart contracts? Smart contracts are too expensive. And so far, these applications have no competitors that can threaten them."

Although it is difficult to predict whether Ethereum will decline or continue to grow in the coming months, one thing is certain: if Ethereum's user base reaches the scale of the Bitcoin network in the next few years, Ethereum will encounter similar scaling problems as Bitcoin.

Original article: http://www.newsbtc.com/2016/03/28/counterparty-founder-ethereum-cant-work-100-hype/?from=groupmessage&isappinstalled=0
By Joseph Young
Compiled by: Kyle
Source (translation): Babbitt Information (http://www.8btc.com/counterparty-ethereum-cannot-work)