A lot of digital money called Ether was destroyed recently. This happened because of a change in how a system called Ethereum works. Before, people had to pay fees when they used Ethereum and those fees were not destroyed. But now, the new way makes some fees disappear forever by burning them. Burning means sending the money somewhere where no one can use it anymore. This reduces the amount of digital money available in the world. Read from source...
1. The article does not explain what Ethereum is and why it matters in the first place. It assumes that the reader already knows what Ether is and how it differs from Bitcoin. This is a poor assumption and a missed opportunity to educate newcomers or casual readers who might be curious about this topic.
2. The article uses vague terms like "burned" without defining them properly. Burning is not the same as destroying, as explained in point 3 below. It also implies that the Ether disappeared forever, which is not true either. Burned Ether can still be recovered by sending it to a different address with a higher fee, or by miners who include it in their transactions later on.
3. The article confuses burning with destroying. Burning means sending Ether to an unusable wallet that cannot receive any other funds or execute any smart contracts. Destroying means permanently erasing the data and the history of the Ether from the blockchain, which is a more extreme action that requires a special consensus mechanism called EIP-1559. This mechanism has not been implemented yet and is expected to happen in 2021 or later.
4. The article does not mention the reasons behind the massive burning of Ether on Thursday, which was likely due to the high demand for block space caused by the DeFi craze and other activities that require fast and secure transactions. It also ignores the fact that burning Ether reduces the gas cost for future transactions, as well as the inflation rate of Ether.
5. The article does not provide any context or comparison with other cryptocurrencies, such as Bitcoin, which also have limited supplies but in different ways. For example, Bitcoin has a fixed supply of 21 million coins that will be mined by the year 2040, while Ether has no finite cap but depends on the network's security and performance. The article also does not explain how burning Ether affects the price or the demand for it in the long term.
Positive
AI's Answer: The sentiment of the article is positive because it reports on a significant event in Ethereum's history. Burning Ether reduces its supply and increases its scarcity, which can lead to higher demand and prices for the cryptocurrency. This is beneficial for investors who hold Ether as an asset or use it for transactions on the Ethereum network.