It's been a while since my last blog post. Lot of work with well-deserved holidays afterwards to clear my head and I’m ready to reload and write again. As I wrote last time, I have made some crypto purchases. I bought Ethereum to be more precise.
Why ETH and not BTC?
At the time of purchase, it seemed to me to be underappreciated compared to Bitcoin.
Here are some screenshots of price charts when I made purchases (all my price chart images can be found on my Tradingview profile).
ETH / EUR graph.
BTC / USD graph
As you can see, it was exactly the same time when ETH began to take the lead. Both graphs show an identical technical figure (head and shoulders), but ETH made a breakthrough. And you can very clearly see in the following ETH / BTC graph.
As you can see the ETH has grown + 165% relative to BTC. Which seems absolutely incredible, right? Seeing Bitcoins grow - these growth rates seem inconceivable. And at the same time, Ethereum has grown 165% faster.
In my opinion this ETH increase against BTC is more significant than the increase against the EUR.
In the crypto world, BTC is a benchmark. And the key to a crypto environment is to increase your Bitcoin count. Similarly, as it is in the classic financial market with SP500. Any result could be considered as good as long as you can beat the benchmark result. Otherwise, why even bother to trade if you can just invest in the SP500 index and make money in the long run?
Now, let’s have a look at the SP500 in relation to the ETH. This look even more dramatic:
Growth during period of just one year + 600% !!! How normal is that?
I do not know. I can't help but think it's a huge bubble.
At the same time - the crypto is still something new. The possibilities offered by cryptocurrencies are mind-blowing. The only thing you can compare cryptocurrencies to is the internet. The growth of the Internet was exponential. And cryptocurrencies also make their winning move in a similar style. And if we think about the fact that this industry directly or indirectly involves a very small number of people, it is even hard to image what might happen when 10% (and growing) of the world's population will be gradually joining into this industry. I am rather certain that it just a matter of time before the crypto will play an increasingly important role in our daily lives.
Another angle to look at the largest cryptocurrencies is to compare the number of BTC addresses (active wallets or active market participants) and the number of ETH wallets. Then you can clearly see that Ethereum is developing faster than Bitcoin.
At the moment, ETH has about 60 million active wallets (wallets with ETH balance greater than 0), while BTC this number is about 40 million. Simply because ETH is like a platform for many projects while BTC remains as a “base currency” or “store of value” if you like. Although much can change with the creation of BTC Layer 2 about which I will go into detail in another post.
If we look at the big market players or so-called whales in this industry, there is a clear trend that they continue to increase their ETH stocks. Below is a picture with Ethereum wallets holding more than 10k each:
If we look at these “whales” as “smart money”, then it is clear that they are just continuing to fill up their ETH stock and I don’t see the reason why I should close mine, so I keep holding it as well.
As for my trading results of two last months is + 60.15% !!! The most incredible result in such a short period of time!
Total score since the beginning of the blog + 78.06%
“Why would anyone trust nerd money vs. central bank money? Nerds brought you the Internet. Banks brought you the Great Depression.” – Andreas Antonopoulos
Stay tuned!
Agris
Comments