Is Ethereum (ETH) A Good Investment?

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:

DeFi Pulse:

Elon Musk, Vitalik Buterin, and skin in the game:

Vitalik and the premine:

Is Bitcoin bad for the environment?

Chart of Ethereum hash rate:

Chart of Bitcoin hash rate:

ETH metrics:

BTC metrics:

Hash power converter:

HashPower Calculator – Convert Hash to kH/s to MH/s to GH/s to TH/s to PH/s

Cryptos and staking rewards:

Argentina deposit rate:

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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  2. Only when you’ve sat with real anaIysts with years of trad!ng experience to their name and carefully briefed on how these market structure work, you’d just be a blind man trying to make his way in a city full of numerous equally blind people, from experience a dip in crypto mar:ket value is a very interesting yet advantageous part of how the mar:ket work, Btc and Eth(slight dip) can be attributed to the huge coin sales from investor of late. I’ve got a lot of crypto in my possession, but a dip has never been my problem, dips as this just merely provides avenue to acquire more trad!ng equity, trad!ng definitely ticks the dot. Trad!ng though is serious business that should only be done under the right stra:tegy and gu!de, I’ve readily employed using s!gnals from trad anaIyst Sarah Joanne Wolf while carrying out personal sessions with amazing returns, this way I accumuIate crypto trad!ng and buy from dips like this. You can easily get to Sarah on ͲҽӀҽցɾąʍ (SLELU) ω𝐇𝓐𝓽ѕ𝓐ρ𝐩 +1 5 1 2 9 5 7 0 0 9 8 for Crypto related issues.

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  3. Your work is brilliant. I especially like the hashrate comparison

    At the same time, is there a risk of high hashrate becoming an Achilles heel?
    Hasn’t it already (essentially) priced out all small miners from the market? In so doing, hasn’t it really reduced decentralisation?

    I wonder if a more efficient project could one day come along with MASSIVELY decentralised mining using spare hashpower found in our pockets. There are a lot of people who would run their smartphones as miners and get paid a small amount, just like they use cashback credit cards for a few bucks a month. The new iPhone chips are becoming serious powerhouses. What will it be like in a decade?

    You say that the market has priced in gains for Eth’s 10% yield, but you say the market has not yet priced in the true value of BTC. If everything were already priced in to assets how would anyone make gains?

    As staking becomes more popular, and people see that one offers gains but the other just sits there, can we honestly dogmatically say “only bitcoin will be popular. Eth is dead!”? I don’t see why we would

    If bitcoin’s price rise has been due to smart money getting in, wouldn’t the advent of dumb money mean a return to 2017 bull run prices?

    Eth used to be over 0.1 BTC!

    That was before staking. Before defi. Before new projects.

    Who’s to say people don’t just buy other projects in the future.

    Does BTC have a bright future. Almost certainly. But at $30,000 a coin, its growth may one day seem muted beside a coin which offers users good interest rates, smartphone mining like decentralisation and potentially other features.

    In other words, maybe bitcoin will be like IBM. A true giant. But every dog has its day. Perhaps one day another project may simply work better. Perhaps BTC will become less relevant as more secure blockchain technology is developed

    Remember, smart money hasn’t bought into the others yet. So when smart and dumb buy new projects, what could the market potentially look like?

    Of course, no such technology exists YET, but what if a more secure blockchain could be made using massive numbers of nodes (one smartphone = one node)?

    What if bitcoin was second most secure?

    In a matter of just a few years, or maybe months, such technology could exist. And if it’s mined by your own smartphone, the distribution problem is solved better than bitcoin

    Never say never 🤔🤷‍♂️

  4. I was skeptical at first but after Cyberteam0 on Telegram getting referred by my aunt I had no cause to be worries anymore

  5. 15 minutes into the video and i feel you hardly have anything positive to say about eth. Sounds a little one sided.

  6. dude ethereum invented smart contracts, it is the reason we can actually use blockchain in business. I’m not selling my ethereum either

  7. Matt can you do a quick vid on what might happen once all BTC are mined and the rewards are completely gone leaving only the transaction fees as a way for miners to make money? I have seen many people wondering if this will naturally reduce the mining/hash because the incentive to do so will be greatly reduced…..

  8. I was really at my lowest and thank God Reddithacks on telegram came through for me, I invested and got more than I ever expected Thank you sir 🙏🙏👏

  9. Thanks Matt – you mentioned, could you please make a video with your thoughts on, BlockFi, and Celsius? I know you’re a big advocate of ‘not your keys, not your coins’ but with all the craziness in the market, it seems like a good place to hodl during a meltdown once the Fed stops the QE / increases the rates towards end of 2021/2022.

  10. Been waiting for this video! Thanks for the thorough explanation. I’m planning on holding ETH short-term and using the profits to buy more BTC

  11. Ethereum has seen some immense strength in the time following its capitulatory plunge towards $1,000 and it’s V-shaped recovery has allowed it to gain serious ground against Bitcoin, even posting a massive breakout against the benchmark crypto, although BTC remaining stable is also important, as any intense BTC selloff could create headwinds that hamper ETH’s near-term growth. It appears that investors are moving further along the risk branch as they rotate out of BTC into assets that have yet to see full-fledged price discovery, there’s a strong possibility that Ethereum will lead the altcoin market’s next wave higher as it is doing presently, which may mean that it has further room to rally in the short-term. Thats why most people prefer trading to holding due to its huge returns on trading over hodling. I started trading on crypto assets using strategies and signals from renowned trading expert sebastian bryant, made as much as $500k worth of crypto assets from starting a live account with $70k, that’s a major move for an amateur like myself. sebastian tellygram (sebastianbryan) and watspp (+447782861037) provides basic insights needed in understanding trading


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