The CEO of VanEck, a global investment firm whose Bitcoin Trust (HODL) is one of about a dozen spot Bitcoin ETFs, says the crypto industry is far behind Bitcoin (BTC), Ethereum (ETH), etc. I think they should focus less on it and more on transaction fees. Related Exchange Traded Funds.
Jan van Eck said on CoinDesk's Markets Daily that transaction fees on the Bitcoin and Ethereum blockchains are unpredictable, making it difficult to build applications in these ecosystems. . “I think the most important story for 2023 is one that people know but don't get enough attention to. It's simply that transaction costs are becoming more affordable through Solana or what's called Layer 2. ,” Van Eck told CoinDesk. Interview with TV station Jen Sanasy.
“If you look at Bitcoin or Ethereum transaction fees, no one is going to build anything with that database, right? “Do you want to fill up with gas for $50? A week, and $600 a week? And effectively, that's the high gas price on Ethereum,” he said.
Solana (SOL), sometimes referred to as the Ethereum killer, is a layer 1 protocol with lower costs and faster transaction speeds than Ethereum. Layer 2 is a separate blockchain built on top of a Layer 1 chain, such as Ethereum, to alleviate the scaling and data bottlenecks faced by Layer 1. Ethereum's Rollup and Bitcoin's Lightning Network are examples of Layer 2.
New solutions with lower and more predictable transaction fees are enabling developers to build more useful applications, and Jan Van Eck predicts this will become even more pronounced in the future. “For me, the most interesting thing happening in crypto right now is that we have scalable databases, many users require high uptime, and costs are now predictable. “Now you can build something real,” he said. “We'll see that in the next few years.”
He also said that unlike the approval process for Bitcoin ETFs, the U.S. Securities and Exchange Commission is not responding to applications from prospective issuers, so it is unlikely that the Ether ETF will be approved by the May deadline. .
“We filed an S1 and we haven't heard anything. So this is kind of a sign. It's not going to happen unless we sort out the disclosure documents,” Jan van Eck said.
