What's not to like is that the burning is countered by unlimited creation of new Eth, with no fixed supply.
Still, I do think Eth will have upside, but this is more due to Eth being (incorrectly) seen as an "alt' to BTC, as opposed to anything else...
When BTC gets to 100K, we could well see Eth at over 2500K based purely on BTC gains.
Quite a few people think that Bitcoin will ultimately have to remove the finite cap on the supply.
Bitcoin's security is provided by miners. And their incentive for mining are rewards paid in Bitcoin. Once all Bitcoin has been minted why would they secure the network? Who's going to pay them for that?
https://finematics.com/ethereum-eip-1559-explained/Burning the base fee creates an interesting feedback loop between the network usage and the ETH supply.
More network activity = more ETH burnt = less ETH available to be sold on the market by miners, making the already existing ETH more valuable. Burning the base fee basically rewards the users of the network by making their ETH more scarce instead of overpaying miners. The fee burning mechanism also sparked a few discussions about ETH becoming deflationary. This would be possible if the block reward is lower than the base fee burnt. That would be the case, for example, during the recent DeFi gas fee craze where the network was constantly under heavy utilization.
One potential drawback when it comes to burning the base fee is the fact of losing control over the long term monetary policy of ETH. With this change, ETH would end up being sometimes inflationary and sometimes deflationary. This doesn’t look like a major problem as the max inflation would be capped at around 0.5-2% per year anyway.
So will EIP 1559 make gas fees much lower?
Not really, it will clearly optimise the fee model by smoothing fee spikes and limiting the number of overpaid transactions,
but the main ways of lowering gas fees are still ETH 2.0 and Layer 2 scaling solutions.
https://blockchainnews.azurewebsites.net/news/ethereum-become-deflationary-asset-see-its-supply-reduced-proposed-eip-1559-upgradeThe Beauty of the EIP 1559The Ethereum Blockchain is unarguably the world’s most used public blockchain, with numerous decentralized finance applications building on it. There have been incessant calls for an alternative to the congestion the network faces, which significantly increases Ethereum gas fees, a fee each user needs to pay for transacting on the blockchain.
With the EIP 1559, the network sets a base fee for every transaction that is carried out on the Ethereum network giving fair opportunity to all. Users who may wish to conduct their transactions faster than the standard provisions of the network can add a tip to validators, to fast-track their transactions. A part of this tip is burnt, helping to improve the monetary policy of the Ethereum network as a whole.
Additionally, the EIP 1559 upgrade will eliminate the use of other digital tokens for payment of fees in the Ethereum Network. Only Ethereum will be used, thus restoring the unique relevance of the Ethereum (ETH) cryptocurrency.Implications for Ethereum’s PriceScarcity is introduced each time Ethereum is burnt after being used in transactions, a feature that helps prevent the inflationary tendencies the network has been exposed to since its launch back in 2015. With this deflationary model, the price of Ethereum is bound to take an upward swing.
Reduced supply and scarcity are characteristics that Bitcoin has wielded to present itself attractive to investors over the years. There are only 21 million BTC that can ever be mined, and with the scheduled reduction in Ethereum’s supply, the demand for Ether may go up. Therefore, with the announcement that EIP 1559 will be implemented, Ether has resumed an uptrend.