‘Will Ethereum overtake Bitcoin?’
This question has seemingly become the most important and polarizing discussion in crypto. Regardless of individual opinions and agendas, Bitcoin and Ethereum are unquestionably the two most important assets in our space. What this means for many people is that it would be monumental for Ethereum to surpass Bitcoin in market cap.
Considering the growing possibility of a flippening as the merge nears (now roughly slated for September 19th, 2022), we can reasonably expect sentiment to polarize even further. Investors new and old will likely entrench in opposing camps, leaving a gaping hole in the middle.
So what exactly is there to hate about Ethereum?
A Bitcoin maximalist will publicly tell you that Ethereum is a security. Gary Gensler may privately concur. Depending on their level of toxicity, a maxi may tell you that Ethereum is a scam, that Vitalik is evil, and that Ethereum’s claim to be “money” is a threat to the very existence of Bitcoin.
Either way, as the merge approaches, these opposing camps will further separate, as one side cheers for Ethereum price to go up and the other side cheers for its demise. The critics are intentionally choosing to spill blood.
It’s a shame.
Have you started to notice the growing crowd that wants Ethereum to be labeled a security? If Ethereum is deemed as such, then just about everything other than Bitcoin will likely follow. It would be wildly damaging for crypto in the US, leaving Bitcoin as the only viable asset.
Is this really what we want?
My opinion is this: the friendly fire MUST stop.
Here is an excerpt from a recent podcast of Michael Saylor describing Ethereum. You all know that I am a huge fan of Saylor and consider him a friend, but I disagree with some of this. You can watch the full video HERE
“You have a technical issue, an economic issue, and an ethical issue. For the ethical issue, it’s an unregistered security. It’s unethical to murder the Ethereum mining industry just because you want to. It’s unethical to sell a commodity that is secured. The second issue is that it’s not economically sound. There is no issuance schedule or protocol that is set in stone for the next thousand years. Lastly, for the technical issue, the protocol changes every year. There is a small group of people that just keep making stuff up. Technically, it’s too ambitious. It’s cool but there are billions of dollars worth of hacks.”
We can also make a list of advantages that Ethereum has over Bitcoin, but what good does it do to compare apples to oranges?
And that is the point. Bitcoin and Ethereum share an underlying technology, but that’s where the comparisons end for me. There is Bitcoin and then there is everything else. And that’s fine. One has little to do with the other. Bitcoiners should not need to “defend” Bitcoin against Ethereum or any other coin, because Bitcoin is already well established and has solidified it’s place. I actually believe that the defensiveness of Bitcoiners makes them look weak, because there is no actual threat. This is a compliment to Bitcoin and a statement about it’s strength.
Bitcoiners hating Ethereum is akin to gold bugs taking issue with Amazon stock enthusiasts. One has little to do with the other, so this doesn’t even happen.
Here are more thoughts from Saylor.
“The industry has to grow up and it will. At the end of the day, the basis of securities laws are biblical, they go back thousands of years. Hammurabi’s code even. The basis of security laws is thall shall not lie, cheat, or steal. Saying these are antiquated laws from 1933 that don’t apply to crypto, is a dead-on-arrival argument. The law is don’t lie cheat or steal, it’s instantiated in different years in different places. The future of the industry will have to be based on an ethically sound foundation, a technically sound foundation, and an economically sound foundation. Bitcoin is all of these.”
I agree with this, and share his beliefs about Bitcoin.
But that does not mean there’s no place for everything else.
My goal with this intro is to offer you some perspective, so that you can create your own investment thesis.
At the end of the day, sentiments derive from narratives, and narratives fuel price - this is your macro playbook in one sentence.
So before you leave, consider this intro my white flag. Even if Bitcoin and Ethereum are similar in some ways, Ethereum is not a threat to Bitcoin and Bitcoin is not a threat to Ethereum… and neither are a threat to you.