hey what's up guys bitcoin and ethereum
have been performing well in 2020 so far in this video i will explain what is a
better investment one full bitcoin or 30 eth
and yes it's 30 eth not 32 apparently not everyone can do first grade math
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all you have to do is subscribe to my channel like this video
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let's take a look at the cryptocurrency market and see where we stand
but before we start please hit that like button it helps out a lot
and let's keep reporting those annoying cryptocurrency scammers
in the comment section below if you look at the bitcoin
the btc price is slightly correcting the current price as of the time of this
recording is at around 11 300 or so by the time you're watching
this the price could change it can be lower
or higher it looks like bitcoin might pull back a bit
from this point and we will see if there is going to be another consolidation
like we have seen in the beginning of the summer or if we
will see wild up and down swings if you look at
the year to date bitcoin still performing well relatively
to other asset classes at the beginning of january 2020 bitcoin
was trading at around seven thousand two hundred dollars
and now it's over eleven thousand three hundred dollars
that's over four thousand dollars gains or if you convert into percentage
that would be 57 increase year-to-date now let's take a look at ethereum all
cryptocurrencies right now including ech have been in the red for
the past few days the current price of eth is slightly
under 400 a coin ethereum recently reached 2 years
high last time it was at 400 back in august
2018 when eth was crashing down in this
devastating 2018 bear market in 2020 eth is performing
phenomenal in the beginning of the year in january
first one eth price was around 127 dollars a coin
you don't have to be a rocket scientist to figure it out that
its age performs much better than bitcoin
but bitcoin performs much better than any other asset classes
outside of cryptocurrencies ethereum gained over two hundred seventy dollars
a coin or two hundred fourteen percent
year-to-date sure we know that it age is better
performing asset in 2020 than bitcoin but the real question is if it will
continue to perform better than bitcoin in foreseeable future if you look at this chart it represents
bitcoin price dominance comparing to other cryptocurrencies
we will notice that btc dominance is decreasing
while its age dominance is slightly increasing
it looks like its age is eating more and more shares of the entire cryptocurrency
pie back in 2017 bitcoin had over 85
dominance in the entire cryptocurrency market
then when the crazy bull market started things changed from zero to 100
real quick bitcoin's dominance dropped till 37 percent
while eth dominance increased still 31 this was the only time when eth came so
close to flip btc but that didn't happen and when we
entered into the bear market bitcoin started to regain its crown
while the ethereum dominance decreased now bitcoin's dominance is at 59
while eth increased till 12 also very interesting if you look at the
bigger picture since 2013 bitcoin starts to lose its
dominance power and it looks like this long-lasting
trend will continue to persist into the future but what is the biggest
cryptocurrency in the market besides bitcoin right now of course it's
ech so we can come to conclusion that over a
long run these two dominant power will converge
one more time which means ech is likely to outperform
bitcoin in price action also if you look at this chart it
represents its h3btc ratio if you do not know what it means we
simply take price of ech and divide that number by price of bitcoin
that is 385 dollars divided by 11 dollars and we get zero point zero three
four which means it's age price takes only
three point four percent of entire bitcoin
at the peak of 2017 bull market its age took as much
as 12 of one btc it looks like the trend of each to btc
ratio is likely to increase so currently you have a choice you can
buy one bitcoin for eleven thousand three hundred dollars
or you can buy approximately 30 eth for 380
each which one would i choose i will answer later in this video
but in meanwhile let's take a look what bitcoin jesus andre santanapos
he has to say about bitcoin versus ethereum debates
um well i'm i'm i'd have to speculate on their state of mind but i'll i'll try my
best i think it's important because it's a
framing assumption that drives the interest in bitcoin
uh bitcoin from the beginning uh was defined by its fixed
uh and immutable supply of no more not even up to 21 million coins and
a fixed issuance schedule that is set in stone or
rather set on the blockchain which is even stronger and
will not change it's um it's also one of the key characteristics because
bitcoin is first and foremost money and uh in fact it's money of a
particular kind it's hard money or sound money and
um that drives a lot of its appeal especially within some groups
who are interested in it with a very um specific austrian economics ideological
interests to just to clarify because i think this
point has been lost ethereum supply has validated every
block and it's validated according to the census rules and everybody who runs
an ethereum node um their node validates the supply there's no difference in that
fundamental mechanic from bitcoins fundamental consensus
rules with regards to validation of supply the
difference is that because of a variety of factors um
that are different in bitcoin than in ethereum
in bitcoin there is a specific api method you can
ask your node to give you the current sum uh and in ethereum it's not so easy
to do that that doesn't mean there is no sum that
doesn't mean that the sum isn't validated part of the consensus rules it
just seems that it just means that that's not an easily
accessible answer and depending on how you write
the script that comes up with the answer and the methodology you use you might
come up with some slightly differing answers the
first one is that bitcoin doesn't use a double entry
bookkeeping account balance system instead it uses a
system that's more like tracking um fixed amount coins through
the system and these are called unspent transaction outputs and at any
moment in time it keeps a database of the current
unspent transaction outputs and so it's it's very easy to
just sum them up so the the current state of the
unspent transaction output database is easy to access ethereum doesn't use
um fixed amount coins um indivisible chunks of currency as bitcoin does
instead it uses a system of accounts these
accounts have credits and debits these credits and debits are reconciled
as part of consensus and have to add up but in order to figure out what the
exact balance of any account is or to sum the balance
of all the accounts you have to go back to the genesis block
and then you just have to run through the pluses and minuses until you arrive
at an answer and so that takes more work
it takes even more work because of some historic anomalies in the
um ethereum blockchain there's a period where
um validating the state takes a a significant amount of computation due to
a bug that allowed a denial of service attack that's
not neither here nor there you can't validate it it just takes more time
and so once you add up all of these numbers you can get an
answer however that answer changes every 15 seconds because
bitcoin has 40 blocks in the same time sorry ethereum has 40 blocks in the same
time the bitcoin has one i think ethereum has been migrating
towards proof of stake for a very long time
and that's one of the reasons why criticizing this proof-of-work system
doesn't really make sense because you know it's just an interim system
um i don't know whether proof-of-stake really makes ethereum better
money i still think that some of the design tradeoffs required
to run a smart contracts platform that make
ether a utility token for the explicit purpose of being used as gas
to meter the execution of smart contracts all of these things involve
some pretty fundamental design trade-offs
which in my mind don't make ethereum primarily sound money it can have
the function of money also just like gasoline
can yeah sure you primarily use it to put it in your car but you could
build an underground thousand gallon tank and use that to barter in the
apocalypse um but you know that's the apocalypse
or it might be and some people are i'm sure are hoarding gas or beans
um that doesn't make those things money um
even though they have value so and again you know i have this i have a
similar and opposite impression of bitcoin which is that bitcoin isn't a
good platform for smart contracts and that's
a good thing because it was never meant to be and shouldn't
try to be because everything that it does to be
sound money um kind of undermines its ability to be a smart
contracts platform and vice versa and these compromises serve a purpose
um these trade-offs serve a purpose i've talked about this extensively in a video
i call the lion and the shark where i describe um these types of
divergent evolution where you have a cryptocurrency or
blockchain that is an apex predator within its own domain of
applications just like the line as a apex predator in
the savannah and the shark is an apex predator of the
ocean and kind of comparing them or trying to apply the framing
assumptions of one on the other doesn't make sense um so to give you
to take that analogy a bit further criticizing ethereum
for um its total supply is a bit like the um denizens of the savannah saying
well shark you you don't have sharp claws and
four paws so you can't run and catch gazelles and
we all know that catching gazelles is the most important thing in the
savannah um you know sure it's it's a valid argument
if that's what you're trying to do but that's not what the shark is trying
to do and it doesn't make sense to criticize the
shark for not having claws any more than it
it makes sense to criticize the lion from looking
really ridiculous when it's trying to swim in the ocean
um these are not systems that compete directly
against each other and not because they're weak but
because their strength lies in specialization
that adapts them for one purpose while simultaneously
maladapting them for other purposes and that's a good thing we need
specialization um so you know that's why i think it's
it's all a silly argument and you you can go on
forever down that path but the bottom line is
they're not really competing we know that bitcoin has fixed supply
there won't be more than 21 million bitcoins
ever every four years bitcoin's inflationary supply drops in half
just recently in may we had bitcoin having where btc
mining reward dropped from 12.5 btc till 6.25 btc per block
so it has very appealing mathematical algorithm
with a fixed supply that essentially makes bitcoin is out money
no one can change the algorithm to inflate bts in circulation
no one can print more bitcoin just like fat does with our currency
and no one can stop bitcoin from running it's not work
this is why lots of libertarians choosing bitcoin
over essential control of federal government that proved over and over
again throughout the history that our currency is not sound money
with ethereum is different i saw many comments in the section below
whenever i make video about hch many viewers say something like that
i wish eth would have a hardcap supply and i disagree with that statement in
fact i agreed with andreas antonopoulos who says that
comparing bitcoin to ethereum is like comparing apples to oranges
it doesn't make too much sense doing so eth
is not trying to beast out money just like bitcoin or even gold
its age main objection is to be the platform where developers can build
decentralized applications and execute smart contracts
to do so in high volume its age needs to be scalable
for any platform to be scalable it has to have slight inflation built into the
network it's very similar to modern monetary
theory they print money and they are able to
scale the economy as long as they control the currency
supply and do not print too much the economy will likely to scale as well
i would argue that we won't be where we are today if we
were at the gold standard if we would have gold as a reserve
currency today we would be in deflationary environment
not many people would want to spend gold if there is no spending there would be
no consumption if there is no consumption
there would be no economic growth more than 70
of us gdp is driven by consumption similar argument we can make with
ethereum if we want to have scalable network
we need to have slight inflation as simple as that
and i do not want to hear that bullshit anymore that
it should have hard cap supply going back to the question what would i
choose one bitcoin or 30 eth if someone would put a gun to my hat i
would choose 30 ech because i believe its age will
outperform bitcoin in any bull market if you are an old grandpa that wants to
retire comfortably i would recommend choosing bitcoin since
bitcoin is more safer investment than ethereum
but if i can choose freely why not to choose both
apples are good oranges are good but apples and oranges
are even better bitcoin and ethereum have different functions
so it's better to own both if you have 11
300 that you are desperately want to invest in cryptocurrency and you do not
know what to choose one bitcoin and 38ch i would spend six thousand eight hundred
dollars buying bitcoin and remaining four thousand five hundred
dollars buying eth that would be 60 40 split let me know
what do you guys think what would perform better one bitcoin or
30 ech leave your thoughts in the comment
section below smash that like button and subscribe
