In this video, I discuss the pros and cons of Ethereum (ETH) as a long-term investment.
While I am fascinated by the Ethereum experiment (in particular DeFi), ETH is currently too speculative for me. It has more potential upside than Bitcoin, but also more potential downside.
I am not a fan of the huge pre-mine or of Vitalik Buterin cashing in on 25% of his position. This is the Cantillon Effect recreated in the crypto space.
The fact that ETH has a very visible founder and project leader (Vitalik Buterin) provides a possible single point of failure, who can be killed, bribed, or otherwise compromised.
I am also not a fan of the move to Proof of Stake, or the centralization of Ethereum’s infrastructure on Infura and AWS.
In addition, the future monetary policy of ETH is uncertain and impossible to predict. It has changed many times over the years already, while Bitcoin’s monetary policy has stayed constant and 100% predictable.
Store of value is the biggest use case on the planet, and I think BTC wins this use case (winner take all) over ETH. I believe that BTC massively outperforms ETH over the next 5-10 years. Over shorter time periods, ETH could certainly outperform, but trading in and out of it in order to eventually accumulate more Bitcoin is risky, very difficult to do, and not tax-efficient.
Not investment advice! Consult a financial advisor.
Cryptocurrencies by market cap:
Elon Musk, Vitalik Buterin, and skin in the game:
If Tesla & SpaceX go bankrupt, so will I. As it should be.
— Elon Musk (@elonmusk) December 22, 2019
Vitalik and the premine:
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Chart of Ethereum hash rate:
Chart of Bitcoin hash rate:
Hash power converter:
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Proof of Work vs. Proof of Stake:
Infura is a risk to Ethereum:
Ethereum nodes and Amazon Web Services:
Vitalik death hoax:
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