This is part one of a series of four parts of highlights taken from "Own The Internet - A Bull Case For Ethereum" on Zerohedge.com authored by Packy McCormick via NotBoring.com (Paraphrase, commentary, embellishments and musings by Boston C!)
"What if I told you about a business with strong network effects and 200x YoY revenue growth that was preparing to offer a 25%. Is that something you might be interested in?"
Welcome to Ethereum!
...one of the most fascinating and compelling assets in the world, obfuscated by complexity of crypto.
Ethereum is a lot of things at once, and they all feed off of each other. Ethereum, the blockchain, is a world computer, the backbone of a decentralized internet (web3), and the settlement layer for web3. Its cryptocurrency, Ether (ETH), is a bunch of things, too:
- Internet money.
- Ownership of the Ethereum network.
- A Store of Value (SoV).
- A bet on the web3 future.
Because Ethereum is so much at once, it’s hard to understand. People interested in technology businesses, finance, and strategy say it’s much more fascinating than bitcoin, but it hasn’t gotten the mainstream or institutional attention that bitcoin has.
Bitcoin is easy. It’s digital gold. It’s a Store of Value (SoV). It just kind of sits there.
That’s its value prop. It’s immutable and the most decentralized asset in the world. As long as other people believe in its value, it will continue to be valuable. Technically, upper-case-B-Bitcoin is the blockchain and lower-case-b-bitcoin is the cryptocurrency. Bitcoin exists to make and track bitcoin. It’s very good at what it does.
Ethereum is so much more than a cryptocurrency. It’s a “world computer,” and the “value layer” of the internet. It lets people build apps and products with money baked into the code. If you believe that web3 is going to continue to grow, then you likely believe that over time, Ethereum will become the settlement layer of a new internet. All sorts of transactions, whether they happen on Ethereum, another blockchain, or even Visa, will turn to Ethereum to exchange funds and keep secure, immutable records.
Think use case explosion. DeFi, NFTs, and DAOs have emerged as real use cases for crypto, and have grown spectacularly over the past year.
Ultra Sound Money. With the upcoming implementation of EIP 1559, Ethereum will likely become deflationary, knocking out its biggest monetary weakness.
Eth2. Ethereum is currently running a test chain that will merge with the main Ethereum chain in about six months. When it does, Ethereum will switch from Proof of Work (PoW) to Proof of Stake (PoS), and more value will accrue to ETH holders.
The narrative around Ethereum is gaining steam and jumping from crypto people to the mainstream. ETH will be one of the best assets to own over the next five years.
Owning ETH is like owning shares in the internet. Demand for ETH will go up with increased web3 adoption, while upcoming changes will decrease the supply of ETH and let more value accrue to holders. It’s like a tech stock, a bond, a ticket to web3, and money, all rolled into one.