Bitcoin is typically the crypto-asset that gets the most mainstream media attention and at this point I’d say that most people have at least heard of it. Though, I believe that Bitcoin is the trojan horse for crypto and that once people are actually in the crypto ecosystem they gravitate towards one thing over pretty much everything else – Ethereum.
Think about it – what other platform commands as much attention as Ethereum within the crypto space? All of the most interesting things are happening on Ethereum from DeFi to layer 2 scaling to NFTs. Not to bash on Bitcoin but once you learn about it and buy BTC there’s not much else to do – you basically hold it and watch number go up and down (or tokenize it on Ethereum). This means that there really is only one door in and out of the Bitcoin ecosystem.
Though, on Ethereum, there are countless doors you can choose from to get your first taste of the ecosystem and we’re already seeing this play out. A perfect example of this is crypto art where artists are tokenizing their work and selling it on Ethereum – this is their front door and they bring many new people in with them (a recent example is the Beeple Drop). The same goes for crypto games like Axie Infinity where they have a very active community that aren’t in the Ethereum ecosystem to speculate on hot new DeFi tokens or get rich from going long on ETH – they are getting real value out of playing a game that they enjoy.
The funny thing is that Ethereum also commands the most amount of attention within the crypto space because of the amount of drama surrounding it pretty much every day. This drama acts as an amplifier for Ethereum and is amazing free publicity as new people coming into the crypto space are not “maximalists” so they don’t care about the tribalism nor pay much attention to it. All they really care about is what they can do with the apps that we have built for them over the last few years and they can do so many things on Ethereum.
I’m a strong believer in Ethereum being just “one cycle” behind Bitcoin across basically every metric – awareness, market cap, institutional adoption, general acceptance and more. Though I do think that the jump for people to go from non-crypto to Bitcoin is much larger than the jump from Bitcoin to Ethereum which is why Ethereum’s cycles will play out faster than Bitcoins have. We already see this with institutional products like CME futures where it took 8 years for BTC to get a product on CME and then only 3 years for ETH.
So due to all of the above, I think that 2021 could very well be the year that the world wakes up to Ethereum.
Have a great weekend everyone,
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All information presented above is for educational purposes only and should not be taken as investment advice.