Vitalik Buterin links the decrease in commissions with the growing popularity of digital assets in regular payments

Ethereum co-founder Vitalik Buterin believes that the transition of the network to PoS can make cryptocurrency assets more popular when making regular payments. He pointed out that the use of digital currencies was previously more common, but for a significant part of the blockchains, this turned into difficulties in terms of scalability and high commissions. Because of this, everyday payments using crypto assets are not as common.

“Cryptocurrency payments somehow fell out of favor after 2018. And, of course, transaction fees have become one of the reasons for this. In the future, after the introduction of rollups, after all the efficiency improvements, transaction fees may drop to 5 or even 2 cents,” Buterin emphasized.

He noted that initially the main version of the use of digital currencies, in particular, bitcoin, was its use as a payment instrument. Buterin now believes that the Lightning Network on the BTC network and the Optimism protocol on the ETH network can increase attention to the use of the most popular coins in payments.

According to the expert, low-cost crypto transactions are relevant for citizens of low-income countries where the financial infrastructure is not very developed. Inexpensive transfers can accelerate the adoption of non-financial applications such as domain name systems, Web3 account management services, and attendance protocols.

Against the backdrop of an increase in the speed of transactions, commissions for them may decrease to the minimum values. In this case, ubiquitous transfers in cryptocurrency will again make sense, the founder of Ethereum is sure. Buterin believes that transaction fees could drop to $0.02.

According to Bloomberg Intelligence senior commodities strategist Mike McGlone, ETH, like BTC, will move higher in 2022.

“Bitcoin is on its way to becoming a global digital asset, and Ethereum has become the main engine of the digital revolution, as evidenced by the ability to use the most widely traded cryptocurrencies — dollar tokens,” the expert said.

Everything seems to be about the continuation of the hype around the main cryptocurrencies. Do you agree?