Ethereum at the weekly view.
Like Bitcoin, I had to use the logarithmic scale due to its volatility. Log scale is better for long-term views which accounts for volatility over time.
Ethereum specializes in smart contracts. A smart contract is a decentralized digital contract that legally binds the parties without third parties intervening. Whenever you do any deals/transactions online, you usually have a third party. That said, you have to trust that third party won't:
1. Track and sell your browser history (Google)
2. Track and sell your personal information (Facebook)
3. Censor you (Twitter)
4. Collude with other corporations to shut your site down (Amazon)
5. Or change the terms pretty much behind your back (big tech in general)
Smart contracts pretty much put the average person on the same par as a big corporation. The terms must be met or nothing will happen. If one party tries to change the the terms, all other parties involved will be notified. So the changes have to be unanimous. Basically, no corporate attorney can change the contract behind anyone's back as the contracts are secured under blockchain technology. A big part of expenses in big tech has been legal related.
Whereas Bitcoin was born from the distrust of big banks and big government, Ethereum was created out of the distrust of big entities such as big tech. It puts all parties involved on equal grounds instead of who has the biggest army of corporate attorneys. Similar to Bitcoin, Ethereum has a libertarian element behind it and it's precisely why the original investors believed in it and hodl it for years. Here is why Ethereum has more potential. Bitcoin is proof of work, but Ethereum is trying to move to proof of stake (higher level of security). When there are more crypto transaction, smart contracts serve as the vehicle which increases Ethereum's performance.
Think of Bitcoin like the gold bars themselves and Ethereum is both the armored car and ownership rights. It's why I thought Ethereum was brilliant back in early 2020. That theory turned out to be true since Ethereum outperformed Bitcoin in 2021... which was more of a lucky theory than anything else.
Ethereum is in a big channel over the years like Bitcoin. However, once the EIP 1559 upgrade is installed and succeeds, that should burn the expensive gas fees. Technically, Ethereum is in a big uptrending channel. Like all crypto, you can only make a few moves per year to make the most out of it.
Now, what happens if ETH 2.0 was a failure? That's why Cardano and Polkadot are talked about. They are the competitors against Ethereum. Why is that? The creators of Cardano and Polkadot were part of the original Ethereum team.
And yes, I've been an Ethereum and have been hodling for a while now. It's these boring periods of consolidation is what crushes bullish sentiment. It's like that gold and silver's bullish reversal will distract retail and then crypto will make a move again.
I'm in the camp of an extended cycle. Usually, these crypto cycles rhyme every 4 years. If this consolidation continues all summer, then the extended cycle theory might come true where the cycle peak might be delayed to 2022 (possibly 2023).
Like Bitcoin, I had to use the logarithmic scale due to its volatility. Log scale is better for long-term views which accounts for volatility over time.
Ethereum specializes in smart contracts. A smart contract is a decentralized digital contract that legally binds the parties without third parties intervening. Whenever you do any deals/transactions online, you usually have a third party. That said, you have to trust that third party won't:
1. Track and sell your browser history (Google)
2. Track and sell your personal information (Facebook)
3. Censor you (Twitter)
4. Collude with other corporations to shut your site down (Amazon)
5. Or change the terms pretty much behind your back (big tech in general)
Smart contracts pretty much put the average person on the same par as a big corporation. The terms must be met or nothing will happen. If one party tries to change the the terms, all other parties involved will be notified. So the changes have to be unanimous. Basically, no corporate attorney can change the contract behind anyone's back as the contracts are secured under blockchain technology. A big part of expenses in big tech has been legal related.
Whereas Bitcoin was born from the distrust of big banks and big government, Ethereum was created out of the distrust of big entities such as big tech. It puts all parties involved on equal grounds instead of who has the biggest army of corporate attorneys. Similar to Bitcoin, Ethereum has a libertarian element behind it and it's precisely why the original investors believed in it and hodl it for years. Here is why Ethereum has more potential. Bitcoin is proof of work, but Ethereum is trying to move to proof of stake (higher level of security). When there are more crypto transaction, smart contracts serve as the vehicle which increases Ethereum's performance.
Think of Bitcoin like the gold bars themselves and Ethereum is both the armored car and ownership rights. It's why I thought Ethereum was brilliant back in early 2020. That theory turned out to be true since Ethereum outperformed Bitcoin in 2021... which was more of a lucky theory than anything else.
Ethereum is in a big channel over the years like Bitcoin. However, once the EIP 1559 upgrade is installed and succeeds, that should burn the expensive gas fees. Technically, Ethereum is in a big uptrending channel. Like all crypto, you can only make a few moves per year to make the most out of it.
Now, what happens if ETH 2.0 was a failure? That's why Cardano and Polkadot are talked about. They are the competitors against Ethereum. Why is that? The creators of Cardano and Polkadot were part of the original Ethereum team.
And yes, I've been an Ethereum and have been hodling for a while now. It's these boring periods of consolidation is what crushes bullish sentiment. It's like that gold and silver's bullish reversal will distract retail and then crypto will make a move again.
I'm in the camp of an extended cycle. Usually, these crypto cycles rhyme every 4 years. If this consolidation continues all summer, then the extended cycle theory might come true where the cycle peak might be delayed to 2022 (possibly 2023).