Ethereum felt sexy six years ago.
The creator, Vitalik, speaks like a boy genius. He’s kind too. After being gifted other cryptos that made him $1.5B, he gave it all to charity. The story of how he had to access the crypto on an old laptop in another country and carefully make the trade is a fascinating one.
I recently doubled my investment in Ethereum.
And I’m not the only one. Blockchain expert and ex-Goldman Sachs investor Raoul Pal dropped a bomb recently about Ethereum. He explains buying Ethereum as the greatest investment of a lifetime. I wouldn’t go that far.
Ethereum is the best investment in the last 20 years. Here’s exactly why.
The one Ethereum statistic I had no idea about
Ethereum underwent a massive upgrade. Let’s skip past the technical jargon because I know you don’t care. Here’s what matters:
Basically, there is 13% of all the free float of Ethereum available. Everything else is being staked, locked, and hoarded. They’ve just made the supply more difficult. The supply is lower. The Ethereum that is in free-float is falling every day … Most people are going to start staking the Ethereum that they hold.
There is no Ethereum available. And demand is going exponential. Exponential demand, meets fixed supply, equals exponential price rise.
One of the best setups I’ve ever seen — Raoul Pal
Let me explain what that means in simple terms. The total number of Ethereum available to be bought is now only 13%.
The rest of the supply of Ethereum is being saved by investors like you and me, or locked away in various projects. The amount of Ethereum available to buy each day is going down and this isn’t going to go up again.
People who own Ethereum can stake it. This simply means you can lock up some Ethereum and use a computer to become a person who validates Ethereum transactions. Most of you reading this are never going to do staking, but it’s a big business that has created huge shortages in computer hardware like graphics cards.
Takeaway
When more people wake up and realize that Ethereum replaces large chunks of the internet we know and love, how will they own Ethereum if there is none available? Well, they’ll have to pay a lot of money for it. That’s why the $20,000 price predictions per Ethereum aren’t that crazy.
Ethereum enables a quiet trend
By now you’ve probably heard about NFTs (Non-Fungible Tokens). Social media icon Gary Vaynerchuk has turned all of his attention to NFTs for a reason. NFTs disrupt many dinosaur-age business models.
There are eBay-like auction sites such as OpenSea popping up everywhere. These are places where creators can go to sell their photos, blog posts, tweets, illustrations, audio, video, etc. An NFT proves ownership and allows digital goods to be transported all around the world in seconds.
Transparent ownership has been missing from the internet. When ownership of digital goods becomes mainstream again, the ways to make money from art will be transformed. That’s not all. A piece of art will also act like a ticket to an event or access to an experience in the real world. This is huge.
What do NFTs have to do with Ethereum? The biggest NFT platforms use Ethereum to create trust and send/receive transactions. NFTs are another reason Ethereum has been booming.
$90m in 30 days has come from this game
Games built on blockchain are another reason adoption is going exponential. The biggest game of them all is called Axie Infinity. It’s a combination of Pokemon and Tamagotchi for you 90s kids.
Axie Infinity has done $90m of revenue in 30 days. The game has 350,000 daily active users. It makes Facebook look like a lemonade stand. When the global health crisis caused devastation in the Philippines, many citizens got jobs in the game that paid them money. A whole documentary on this new type of job is on Youtube (see here).
Blockchain games are creating jobs. New digital economies are being born. The significance to Ethereum is that games like Axie Infinity are also built on top of Ethereum.
Games are another reason experts are calling Ethereum one of the best investments in history.
Bottom Line
Ethereum is six years old. The biggest trends in tech — decentralized finance, smart contracts, NFTs, blockchain games — are all enabled by Ethereum. The usage of the Ethereum network is higher than it has ever been.
Ethereum settled $1.5 trillion in transactions in the first three months of this year. This thing is not a toy. That’s a lot of cash.
Now a major Ethereum update has gone live only 13% of Ethereum is available for people to buy. It’s no wonder the price of Ethereum is going parabolic, and that’s why I’ve doubled my investment in this new asset class.
Ethereum is what Facebook, Google, Netflix, and Amazon were over a decade ago. Most people just haven’t figured it out yet.
Limited supply equals growth.
This article is for informational purposes only, it should not be considered Financial or Legal Advice. Consult a financial professional before making any major financial decisions.
