I would rather hold 3.2 million satoshis than 1 ethereum
Ethereum 1.0 hype peaked in mid 2017 with the ICO boom. Ethereum reached an all time high of about 15 million satoshis (0.15000000 BTC). It then fell 90% to 1.6m satoshis.
Marketing for "Ethereum 2.0" generated new hype that helped it to recover to 4m sats by september 2020, before collapsing to about 2.2m sats by december.
The recent recovery is losing steam as it approaches 4m sats. This represents an opportunity to begin entering a short ETH/BTC position (sell eth buy btc). If the recovery fails to make substantial ground above 4m sats then it is likely we retest 2.2m sats, 1.6m sats and 700k sats.
This is not a short term view. 5 years from now I would rather be holding 3.2 million satoshis than 1 ethereum.
3.2m sats represents a fixed percentage holding of the total amount of Bitcoin that will ever exist. Bitcoin is truly scarce (there will only ever be 2.1 quadrillion sats).
Ethereum is inflationary, there will always be more. The network is not truly decentralised, you cannot easily run your own node and there will always be hardforks decided by others on your behalf. Ethereum is able to easily change its monetary policy which is worrying, it can suffer the same issues as tradtional money. Bitcoin's monetary policy is fixed in stone and enforced by every user (everyone can run a node). Bitcoin is decentralised finance. Building on Bitcoin is sustainable and booming. Lightning and Liquid are just two early examples of what's possible.
The big picture/macroeconomic context right now is to be long a safe haven asset that cannot be inflated away by central leadership. This is why the worlds largest investors are buying Bitcoin. No one is buying ETH to protect their wealth from inflation.
Bitcoin represents Value & Growth
Ethereum represents Hype (unsustainable/unwarranted growth)
Ethereum can outperform Bitcoin (ETH/BTC goes higher) over short time horizons. The 2021 bull market will be a rising tide that lifts all boats, Ethereum included. It's possible we go significantly higher than 3.2 million satoshis but it will not be sustainable.
Marketing for "Ethereum 2.0" generated new hype that helped it to recover to 4m sats by september 2020, before collapsing to about 2.2m sats by december.
The recent recovery is losing steam as it approaches 4m sats. This represents an opportunity to begin entering a short ETH/BTC position (sell eth buy btc). If the recovery fails to make substantial ground above 4m sats then it is likely we retest 2.2m sats, 1.6m sats and 700k sats.
This is not a short term view. 5 years from now I would rather be holding 3.2 million satoshis than 1 ethereum.
3.2m sats represents a fixed percentage holding of the total amount of Bitcoin that will ever exist. Bitcoin is truly scarce (there will only ever be 2.1 quadrillion sats).
Ethereum is inflationary, there will always be more. The network is not truly decentralised, you cannot easily run your own node and there will always be hardforks decided by others on your behalf. Ethereum is able to easily change its monetary policy which is worrying, it can suffer the same issues as tradtional money. Bitcoin's monetary policy is fixed in stone and enforced by every user (everyone can run a node). Bitcoin is decentralised finance. Building on Bitcoin is sustainable and booming. Lightning and Liquid are just two early examples of what's possible.
The big picture/macroeconomic context right now is to be long a safe haven asset that cannot be inflated away by central leadership. This is why the worlds largest investors are buying Bitcoin. No one is buying ETH to protect their wealth from inflation.
Bitcoin represents Value & Growth
Ethereum represents Hype (unsustainable/unwarranted growth)
Ethereum can outperform Bitcoin (ETH/BTC goes higher) over short time horizons. The 2021 bull market will be a rising tide that lifts all boats, Ethereum included. It's possible we go significantly higher than 3.2 million satoshis but it will not be sustainable.