WEBVTT

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Here let me write something down.
This is important. The most important value

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proposition of cryptocurrency is decentralized, secure, digital scarcity. It took me at

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least a couple of years of daily
research and stupid investments to mature into this

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realization. But once I got there, I saw very clearly that Bitcoin is

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the only cryptocurrency that makes sense to
hold long term, because ald coins aren't

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decentralized, secure, or scarce.
At the end of this piece, I'll

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suggest some books that really changed my
understanding of the banking system and money economics,

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bitcoin, decentralization, and what it
means to be self sovereign. But

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here I am in this not so
fun position with a bag of alt coins

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that I bought when I was new
in this space. Let me know if

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you recognize yourself here. This is
how I reasoned. I wanted to have

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exposure to crypto, and so I
did my due diligence on different all coins

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or so a thought, and started
buying, thinking I did myself a favor

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by diversifying. At the time,
I new too little to realize my mistake.

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If you want exposure to the world's
stock markets, you buy a cheap

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global fund with stocks from different regions
and different sectors. You don't buy penny

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stocks from startups in Venezuela. And
if the most important value proposition of crotocurrency

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is decentralized, the digital scarcity,
you don't buy decentralized hypecoin of the month.

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If you've made bad investments or if
you're not enjoying this beer market,

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this is for you. In every
beer market, Bitcoin regains market dominance over

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all coins because all coins are more
volatile than Bitcoin. In both beer and

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bull markets, whatever Bitcoin does,
all coins do, but times ten.

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In a beer market, Bitcoin will
go down obviously, but also will go

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down even more, and so Bitcoin
regains the market dominance in beer markets.

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Similarly, in bull markets, also
go up more than bitco point does percentage

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wise, and so Bitcoin loses a
bit of market dominance in bull markets.

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In these market cycles, there are
always some old coins that disappear, and

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there are always some newcomers. Now
I'm sitting on a bag of ethers,

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and here's my plan. Let me
go to trading you and look at et

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BTC. At the peak of the
last bull run in December twenty seventeen and

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January twenty eighteen, one ETG cost
one thousand, four hundred dollars. This

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was also when EH had its higher
share of market dominance, and one ETG

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cost zero point fifteen BTC. Currently, in this bear market, at twenty

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eighteen, one et costs zero point
zero three BTC. We see here that

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ETH behaves like every old coin.
Ald coins do whatever BTC does, but

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with a little bit of lag and
more volatility. So my plan is this,

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if we see another bull run and
ETH increases with respect to BTC,

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I will sell my ETG for BTC
at the previous all time high, so

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when one EH sells for zero point
fifteen b twoc. If EH never reaches

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that market dominance again but still increases
in dollar price, I'll start to exit

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with cell orders starting at around one
thousand dollars per Ether and just take to

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dollars. If neither scenario happens,
I'll hoddle, perhaps see EH go to

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zero or stabilize at something ridiculously low, and take it as a lesson.

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I never lose, I learn.
So if EH goes to its previous all

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time high in terms of dollar price
or bitcoin price, I will first and

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foremost exit for BTC and second for
dollars, But could it go higher than

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zero point fifteen btc per ETH.
Here's the most important thing. Nobody knows.

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There are educated guesses, obviously,
but I'm personally very very careful with

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whom I listen to. I think
it could happen. I think EH could

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surpass a zero point fifteen btc per
ETH, but I think it depends on

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the hype rather than anything else,
and hype may or may not come depending

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on what Ethereum does in the following
years. For example, how are investors

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going to see the switch from proof
of work to proof of stake? What

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it comes down to for all coins
is mostly hype. Furthermore, it doesn't

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really make sense as I see it, to hold EH for its monetary value.

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Ethereum is a platform for building and
publishing decentralized applications that run smart contracts.

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Et is not designed to be used
as money. EH is converted into

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something called gas that is used to
run smart contracts on the Ethereum platform.

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If Ethereum didn't have the ETH token, you could code an app that runs

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an infinite loop and brings down the
network. So ETH is basically a spam

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filter. It was never intended to
be money, but the market doesn't care.

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If the market decides to use EH
as money, then it will.

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But ET is centralized and unsound money. The most important value proposition of cryptocurrency

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is again decentralized digital scarcity. Bitcoin
is decentralized sound money. EH is centralized

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and unsound not money. Eventually,
the general public always senses the difference between

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sound and unsound money, and sound
money always wins. This is very much

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the reason why Bitcoin will outlive both
all coins and the dollar. And here

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are some books I couldn't recommend more
that also happened to be some of my

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favorite books of all time. The
Bitcoin Standard by saved In Amus Master and

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Bitcoin, The Internet of Money Part
one and two by Andreas Antonopolis. The

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Sovereign Individual by James Dave Davidson and
Lord William Rees Moggie. What has the

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Government Done to Our Money? By
Murray and Rothbard, And The Ethics of

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Money Production by Jergigid Hulisman. Good
Luck, happy reading, happy trading talk.

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Soon will do know of what he'll
do with