I’m Selling ETH and Buying Bitcoin
So, there’s been a lot of fear in the markets lately, and a lot of people have been saying that cryptocurrency is dead since FTX went down. But that’s like saying that fiat money is worthless now because a bank got robbed, right? No, the bank just got robbed, and a lot of people were hurt and are angry and outraged, but it takes someone like me who can emotionally separate myself from life itself and understand the bigger picture.
You also need to know that on other blockchains, like Polygon, they use their token and ethereum is worthless there because they don’t respect the value of ethereum tokens. On Avalanche, they use AVAX. Smart chain (Binance Chain) also doesn’t think ethereum is worth much. The BNB token is worth the right amount on Binance Smart Chain. However, Binance is the largest cryptocurrency exchange in the world, so it’s not in their best interest to promote other L1 tokens. Instead, they’ll want to promote the BNB token. The value of ethereum on each blockchain is also very different. On some blockchains, ethereum is worthless, but on every blockchain in the world and every transportation network ethereum is worth something.
North Korea won’t want to hold any assets on Ethereum because the US can put OFAC sanctions on any of these addresses and stop them from doing anything useful on Ethereum. They might be able to hold some ethereum, but they won’t be able to interact with any smart contracts or hold any stable coins, making a lot of these addresses basically worthless and the terms they hold on that are not very useful. Gold, on the other hand, is kind of a primitive relic of a metal, and it’s hard to move around. Russian gold, in particular, has been banned from use in a number of places. I think that over time, people will realize that instead of trying to move gold in countries with capital controls, they should just use Bitcoin instead because it’s so easy and the best way to use technology.
I think it’s important to know that there are two kinds of money: local money and global money. Local money is your fiat currency, which a country can print, devalue, and inflate. Global money, on the other hand, has value all over the world. Bitcoin is closer to global money, so I’m not surprised when people say they don’t see how it fits into their daily lives. How this works is explained by Avalanche and Solana who are near-Ethereum competitors. Let’s say they raised money through an ICO. They would have a lot of their tokens in their own treasury, so they would sell it to groups like me and you at a big discount, like a 40–50% discount, to raise the capital invested, with a vesting period of three to four years, or maybe two years, after which the tokens would be dumped back onto the markets and decrease the overall value of the token. We know that FTX and Binance also said that there was a report that explained they may have sold ethereum for $4 million. I think he later denied this, but the Ethereum Foundation also sells ethereum tokens, so if you want to get out of these VC’s, you can.
If you don’t want to keep track of the fasting schedules of these tokens, most of which are not public, you might as well just hold some Bitcoins. Tim Draper said that he thinks Bitcoin will reach $250,000 next year, but he didn’t say why. It might be good since women control 80% of retail spending. Wow, 80% of spending by women. Now I understand why I feel like money is useless and why I had to write all these philosophical stories about money and the meaning of happiness: there’s nothing for me to buy. Currently, only one in seven Bitcoin wallets is held by a woman.
