In the world of blockchain and cryptocurrency, Ethereum is often hailed as revolutionary—a decentralized platform capable of reshaping the internet, finance, and ownership. It promises freedom from intermediaries, censorship resistance, and a trustless digital economy. These narratives have driven immense hype, speculation, and investment.
But step back for a moment and ask: What does Ethereum actually do for a regular, normal, average person?
If you’re not a developer, a tech enthusiast, or a speculator, does Ethereum solve any problems in your life? Does it provide real-world benefits that make it worth the complexity, cost, and learning curve? The honest answer is: Not really.
Let’s break down the promises, the realities, and why Ethereum remains disconnected from the needs of everyday people.
The Promises of Ethereum
Ethereum proponents often present it as a Swiss army knife of digital innovation, capable of fulfilling a wide range of use cases. The most common ones include:
- Global Money and Payments: A decentralized alternative to traditional currencies and payment systems.
- Decentralized Finance (DeFi): A way to earn interest, borrow money, or trade assets without banks.
- Non-Fungible Tokens (NFTs): Digital ownership of art, collectibles, and in-game assets.
- Cross-Border Transactions: Sending money abroad without fees or delays.
- Censorship Resistance: Financial and social freedom for those living under oppressive regimes.
These use cases sound transformative, but how do they hold up in the real world?
The Harsh Realities of Ethereum
1. Ethereum Is Not Money
Ethereum enthusiasts often argue that ETH is “sound money,” but in practice, it’s far from it. Here’s why:
- High Fees: Ethereum’s transaction fees (gas fees) often exceed $10–$20, making it impractical for daily transactions. Imagine paying $20 to send $50 to a friend or pay for a coffee.
- Slow Transactions: Ethereum transactions can take minutes or even hours during network congestion, compared to nearly instant payments using apps like Venmo or PayPal.
- Volatility: The value of ETH fluctuates wildly. This makes it unsuitable as a store of value or a stable medium of exchange.
The Role of Stablecoins:
Where Ethereum could theoretically play a role is with stablecoins, particularly US dollar stablecoins like USDC or USDT. These are digital assets pegged to the value of the US dollar, offering stability that ETH itself cannot provide. Stablecoins enable global access to a reliable currency, especially in countries with unstable local currencies.
But Here’s the Problem:
Ethereum isn’t even the best blockchain for stablecoins. Faster and cheaper blockchains like Solana, Binance Smart Chain (BSC), or Tron are better suited for stablecoin transactions. These blockchains offer significantly lower fees and faster transaction speeds, which makes them more practical for stablecoin use cases. For example:
- Solana: Offers near-instant transactions for a fraction of a cent.
- Tron: Widely used for USDT transfers in regions like Asia due to its low fees.
Real-World Use:
Most people already use fiat currencies through seamless payment systems like Apple Pay, Google Pay, PayPal, and bank apps. These systems are fast, free, and widely accepted. Ethereum provides no significant advantage here, and even stablecoin use cases are better served on other blockchains.
2. Decentralized Finance (DeFi) Is for Speculators
DeFi promises financial freedom by letting users borrow, lend, and trade without banks. However:
- Complexity: DeFi platforms are notoriously difficult for non-tech-savvy users to navigate. Concepts like liquidity pools, yield farming, and impermanent loss are alien to most people.
- Risk: DeFi is unregulated, and scams, hacks, and bugs are common. The average person values the security and stability of regulated banks.
- Speculation: Most DeFi activity revolves around crypto enthusiasts gambling on high-risk, high-reward strategies. This is far removed from the financial needs of normal people.
Real-World Use:
Normal people don’t need DeFi. Banks already provide savings accounts, loans, and reliable systems. Why would the average person replace their bank with something more complicated, risky, and expensive?
3. NFTs Are a Speculative Bubble
Ethereum powers the NFT market, which allows people to buy and sell ownership of digital art, collectibles, and assets. However:
- Lack of Demand: Most people don’t care about owning digital art or virtual collectibles. The NFT boom was largely driven by speculative investors hoping to profit from rising prices.
- Scams and Fraud: The NFT market is rife with stolen art, scams, and overpriced assets, turning off potential mainstream users.
- No Practical Utility: Beyond niche communities like crypto-art collectors and gamers, NFTs have no significant use case for average people.
Real-World Use:
For normal people, NFTs are meaningless. They don’t improve life or solve problems in any tangible way.
4. Cross-Border Payments: Bitcoin and Stablecoins Shine
Ethereum is often touted as a solution for sending money across borders without intermediaries. However, in practice:
- High Costs: The fees for using Ethereum make it unattractive for remittances, especially for small amounts.
- User Experience: Setting up a wallet, buying ETH, and ensuring proper transaction settings is far more complicated than using services like PayPal, Wise, or Revolut.
Where Bitcoin Excels:
Bitcoin, on the other hand, offers a much more promising solution for cross-border payments:
- Low-Cost Lightning Network: The Bitcoin Lightning Network enables near-instant, low-cost transactions globally, making it far more practical for remittances than Ethereum.
- Global Adoption: Bitcoin is widely recognized and increasingly used for international transfers, especially in developing nations where traditional banking is limited.
The Role of Stablecoins in Cross-Border Payments:
- Stability: Unlike volatile cryptocurrencies like ETH or BTC, stablecoins maintain a consistent value.
- Global Reach: Stablecoins are easily transferable across borders, bypassing traditional remittance fees and delays.
- Cheaper Networks: Stablecoins issued on faster, cheaper blockchains (e.g., Solana, Tron, Binance Smart Chain) make cross-border payments more viable.
Real-World Use:
Ethereum struggles to compete here because of its high costs and inefficiency. Bitcoin and stablecoins—particularly on efficient networks—are far more promising for cross-border payments, especially for people in less developed nations where access to banking is limited.
5. Censorship Resistance Appeals to a Small Minority
Ethereum is often framed as a lifeline for those in oppressive regimes who lack access to financial systems or free speech. While this is a valid use case, it’s important to recognize:
- Niche Audience: This applies to a very small percentage of the global population. Most people in developed and stable countries already trust their governments, banks, and platforms.
- Accessibility Issues: For people in oppressive environments, accessing Ethereum still requires internet access, technical know-how, and resources that may not be available.
Real-World Use:
For the majority of people living in stable economies, censorship resistance isn’t a problem they face.
The Fundamental Problem: Ethereum Solves Problems That Don’t Exist
Ethereum’s biggest challenge is that it’s a solution in search of a problem. Most of the issues it claims to address—like trust, transparency, and censorship resistance—don’t exist for the average person in their daily life. Traditional systems already work well for most people. Here’s why:
- Trust: People trust their banks, governments, and payment platforms because they’ve been reliable for decades.
- Cost: Existing systems like PayPal, Venmo, and Wise are cheap or free for personal transactions.
- Ease of Use: Normal people prioritize convenience. Ethereum’s complexity and steep learning curve are massive barriers.
Why the Hype?
If Ethereum doesn’t solve real-world problems, why is it so popular? The answer lies in speculation and narrative-building:
- Speculation: Most of Ethereum’s activity revolves around people buying ETH, tokens, or NFTs in hopes of making money. This speculative bubble fuels much of the ecosystem.
- Narratives: Ethereum’s proponents build narratives about a decentralized future, which excite investors and technologists but have little relevance to normal users.
Conclusion: Ethereum Is Not Ready for the Average Person
Ethereum, as it stands today, fails to provide any meaningful value for the average person. Its touted use cases—money, DeFi, NFTs, cross-border payments—are either impractical, irrelevant, or already solved by existing systems.
For most people, Ethereum represents complexity, cost, and confusion rather than progress. While it may have potential for niche applications and future innovations, it remains disconnected from the needs of everyday users. Even in areas like stablecoins, faster and cheaper blockchains outshine Ethereum.
For cross-border payments and digital dollars, Bitcoin and stablecoins—on efficient networks—are far more practical and promising alternatives. Ethereum has a long way to go before it can claim to improve the lives of everyday people.
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