It’s really simple. Let me help you help you.
Your wallet can thank you later.
Today is June 9th, 2021. At the time of writing this article, Ethereum (ETH) is at $2,571.27, up 939% percent in a year from $215.16. A month ago, on May 8th, it topped at $4,384.43 (over 1,700% gains since June 9th, 2020).
Now, I’m expecting at the very least a 4x return on Ethereum in the next two years. I personally have it going there even earlier, but for the purpose of allowing buffer in my hypotheses, I will say 2023.
The great Warren Buffet and Charlie Munger hate Bitcoin and other cryptocurrencies. Now, why is that? One reason is that Munger believes cryptocurrencies welcome kidnappers and extortionists (i.e. for getting ransom money off the books and easily). Now to disprove that, less than 1% of crypto transactions has ever been used in illicit transactions. Plus, the blockchain is immutable and public — which to be fair, doesn’t mean much as you would think, since you, as a node in the blockchain, are supposed to be untraceable. However, these transactions are subject to anti-money laundering regulations. Exchanges know who you are.
Sorry, Buffet — Ethereum outperforms Coca-Cola without dividends or a stable cash flow and doesn’t operate as a business. And has, to date, outperformed it, Bitcoin, and the S&P 500 by an honestly ridiculous amount.
Ethereum is, however, nothing like Bitcoin. Sure, it’s decentralized, but it’s completely different. Bitcoin is seen as a store of value nowadays. Ethereum is a global decentralized computer, and be used as a distributed form of every type of financial instrument— like lending, bonds, equity, derivatives, and insurance. Ethereum is settling more than 30.5 billion dollars worth of transactions a day, which is 2x more than Bitcoin (14and 10x more than PayPal. And come on, you know those in the billionaire circles are shifting their money from Bitcoin to Ethereum as we speak. This is an anecdotal fact. Meaning it’s from Twitter.
Now let’s talk about the dollar. The dollar is dying. And it has died even more during the time you’ve been reading this article. The dollar is naturally inflationary, losing value with time, while BTC is disinflationary — capped at a hard 21 million in supply that gets harder and harder to mine with time. But get this, ETH is deflationary. The new proposal — EIP1559 — will reduce the amount of Ether to at most 120M. The supply would actually go down per year. Hundreds of millions of dollars of ETH will burn down every year. Ethereum is on track to become ultrasound money, by becoming more scarce over time.
Why is Ethereum better than Bitcoin?
Bitcoin will never change — unless Satoshi Nakamoto comes out (assuming ‘they’ are not already dead). It will not undergo changes to a proof-of-stake model like Ethereum is going for. Proof-of-stake, where actual holdings in the crypto gives you leverage in the blockchain network, is the most ideal way for a decentralized cryptocurrency to run, rather than proof-of-work, where computing power gives you leverage (it’s able to be more easily bought without an interest in the coin itself — miners can more easily build mining rigs than buy more of the coin, which actually helps the system run more in the future).
The Ethereum community is actually a voice for change in the coin itself, meaning when good decisions are made over and over — compounding on each other (assuming that the community wants better for the coin). This is great for the success of a crypto coin, startup, or really anything. Compounding is the eighth wonder of the world.
But bro? What about energy usage? Father Dogedaddy Elon Musk says it’s bad for the environment! My lord and savior would never lie to me! Yeah yeah, I get it. I loved the man too, that is until he started playing with the crypto market and knowingly affecting the personal wallets of those he told to invest in crypto on Twitter. Lots of people lost their savings, and I won’t forget it, neither should you. I love Elon still, do not worry. And I’d work for Tesla in a heartbeat, but that is certainly an incident that left a sour taste in my mouth, forever.
Don’t readily believe everything you read on the internet kids. Yes, it is not energy-efficient. Yes, there are environmental concerns. But… over 76% of miners use renewable energy rigs. And yes, cryptocurrencies account for 0.59% of all energy usage in the world.
Now for some good news! Ethereum plans to cut its rather ridiculous energy consumption by 99 percent using an update to Ethereum called — ETH 2.0, coming in the next eighteen months. 99 percent! Now you love that it’s changeable. I know, me too.
We expect to hold securities for a long time. In fact, when we own portions of outstanding businesses with outstanding management, our favorite holding period is forever — Warren Buffet
Me too, Warren Buffett. Ethereum is the future, and it is forever for me, and millions of others.
Do you like Medium? The decentralized platform for authors and laypeople alike to come together and share stories like this? Who doesn’t love freedom? Well if you answered yes, the decentralized nature of cryptocurrency is what I find to be the most pivotal part of the entire space, where there is greater freedom and no centralized bank that can print off billions of dollars as we saw in the COVID-19 pandemic.
If that is concerning to you (and it really should be), welcome to the crypto space. Welcome, but be prepared to swing it for the long run. Crypto is volatile, but in the macro, it’s all 📈📈. Look at the history. ZOOM OUT. People who buy in at 30 cents are buying every more at 2.5k, and that should tell you a lot.
Over 82 billion dollars is locked into decentralized finance, up 82x since last year. That should tell you something. It’s okay to be a fangirl for something like Ethereum, on the blockchain, no one would even know. I’m a fangirl and there’s no shame. You want to know why? — What you know, and what I know, is that it’s only 📈 from here, my friend. Take care and invest safely.
Oh yeah, one more thing. Buy. The. Dip. Thanks :)
If this helped, I’d really appreciate some claps and a follow! Thank you for reading this far and hope you have a great day!
What else to invest in? Cardano (ADA).
Who are you? I’m a young person trying to help educate the world.
Special thanks to Garry Tan — he’s made a great video on the topic, which inspired this article
Disclaimer: This is NOT investment advice. This is just my personal opinion that I’m sharing in hopes to educate. Any and all actions are your own. Do NOT buy more than you can afford to lose. Thank you.