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:
https://coinmarketcap.com/

DeFi Pulse:
https://defipulse.com/

Elon Musk, Vitalik Buterin, and skin in the game:
https://twitter.com/elonmusk/status/1208831048026509312

https://twitter.com/TuurDemeester/status/723650000090079233/photo/1

Vitalik and the premine:
https://twitter.com/DarioUTXO/status/724822415130431489/photo/1

Is Bitcoin bad for the environment?
https://www.youtube.com/watch?v=fVT2CSMOVaE&ab_channel=TraderUniversity

Chart of Ethereum hash rate:
https://etherscan.io/chart/hashrate

Chart of Bitcoin hash rate:
https://www.blockchain.com/charts/hash-rate

ETH metrics:
https://messari.io/asset/ethereum/metrics

BTC metrics:
https://messari.io/asset/bitcoin/metrics

Hash power converter:
https://coinguides.org/hashpower-converter-calculator/

Cryptos and staking rewards:
https://www.stakingrewards.com/

Argentina deposit rate:
https://tradingeconomics.com/argentina/deposit-interest-rate

Proof of Work vs. Proof of Stake:
https://www.youtube.com/watch?v=rHvwqFLIDGA&ab_channel=TraderUniversity

Infura is a risk to Ethereum:
https://www.theblockcrypto.com/post/84232/ethereum-infrastructure-provider-infura-is-down

https://coinmarketcap.com/alexandria/article/ethereums-infura-iating-outage-revives-decentralization-concerns

Ethereum nodes and Amazon Web Services:
https://thenextweb.com/hardfork/2019/09/23/ethereum-nodes-cloud-services-amazon-web-services-blockchain-hosted-decentralization/

Vitalik death hoax:
https://fortune.com/2017/06/26/vitalik-death/

Check out my online trading courses:
https://www.trader.university/join
Use this secret coupon code to get a discount: YT99

Check out my Amazon best-seller, "A Beginner's Guide to the Stock Market":
https://www.amazon.com/Beginners-Guide-Stock-Market-Everything-ebook/dp/B07S31TBF5

I am not being paid or otherwise compensated by any company or cryptocurrency project that I mention in my videos.

My opinion is not for sale. Please do not contact me with any affiliate or advertising deals.

#Ethereum
#Bitcoin
#Cryptocurrency


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