Of BTC, ETH and crypto, where do I invest?


Crypto posts tend to be controversial.

People who comment don’t understand enough, and I’m also likely to be corrected by someone who actually knows better, but whose comments may be lost amongst the others. Regardless, hanging out with a lot of tech people lately, and thought this summary I wrote is pretty decent:

Btc is like the USD,

it’s what you use when you want to convert easily to fiat, or other crypto. It’s not going away, and it’s not going to be replaced soon.

Don’t think of ETH as crypto,

Think of it as distributed smart contracts, with major banks investing in applications of such contracts on ETH, along with Toyota and more.

BTC and ETH are two very different investments.

They are tied together (in rise and fall) because, if you want to cash out, you have to go btc. ETH is less volatile, or didn’t fall nearly as hard as btc, but again, don’t see them as competitors. For btc competitors, look to (now) Bitcoin cash, The other Bitcoin that may come from another fork later this month, litecoin, and most definitely ripple.

You have to understand if you want to invest in crypto (then load up on the latter list) or blockchain. If blockchain, realise that there are still huge hurdles in its development, which will cause big swings in value of all tech involved, as is currently the case of btc and the segwit2x saga. And in that case you are also less concerned with the coins, and more with applications. Blockchain circumvents central control, so for money, it circumvents banks and exchange controls. For applications, we are still waiting for the killer app, but it is likely to circumvent Central control or oppression. As eth is currently the leader in smart contracts, it is likely that those killer apps will either fork from it, or be built or based on it.
For a big bank in a recent pilot, Central control meant that none really knows if the goods and shipping manifest match, or if the piece of paper on the boat is more correct. All parties used a smart contact to manage a container vessel from the US to Hong Kong. Because all parties had to ratify the blockchain, all parties knew exactly what was supposed to leave and arrive, as agreed by all parties. Though the killer app is less likely to support banking, and more likely to disrupt it.

And to sign off, losely quoting futurist Mark Pesce:

In a decade every person will likely have their own crypto that represents their time, and you will buy that time if you want it.





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