What are some of the arguments against Ethereum?

A major disadvantage of the Ethereum network is its transaction fees, also known as ‘gas’ fees. Essentially, ‘gas’ refers to the unit that measures the amount of computational effort required to execute specific operations and validate transactions on the Ethereum network. It is those Ethereum miners who verify and process the transactions and blocks on the network that are awarded this particular fee in return for their computational services. Although needed, as of recent times, specifically from February 2020 when DeFi really started to pick up, these gas fees have become increasingly expensive. Such high transaction fees can lead developers or investors to be pushed away, migrating elsewhere where transaction fees are more stable. Recently, Ethereum co-founder Vitalik Buterin wanted to charge different gas prices depending on the resource used by utilising a new ‘multidimensional’ approach to allow users to benefit from optimal gas costs. You can read more here. You can also stay up to date with Ethereum’s recent gas prices here. 

Whilst Ethereum was the first to merge the ideas of blockchain with smart contracts, introducing and paving the way for dApps, there is a rising tide of competitors. Cryptocurrencies such as Polkadot (DOT), Chainlink (LINK), Cardano (ADA) and Binance Coin (BNB), just to name a few, are building off of Ethereum, presenting a threat as competitors. Such projects could present an alternative choice to Ethereum to retail investors that are looking for much smaller transaction fees, for instance, Binance Coin’s Binance Smart Chain (BSC), has offered a much cheaper platform to produce and execute smart contracts on. 

Like all cryptocurrencies, despite being a more “stable” alt coin, Ethereum is open to a high degree of volatility and risk, meaning that although it is open to increased gains, it is open to numerous losses too. Over the years, Ethereum has fluctuated greatly, with the price in January 2019 being as low as $100 USD, in January 2020 being $186 USD, and the current price being around $3,100 USD (down 16% in the last week). Historical fluctuations and pricing can be found here.