I sold Ethereum at 3600 and went 100 percent Bitcoin!

00:01 Hey everyone. Back in 2021, about
00:04 exactly four years ago, I sold what
00:06 little Ethereum ETH that I owned and
00:10 used the proceeds to buy 100% Bitcoin.
00:13 And since then, Ethereum is down 50%,
00:17 literally 50% from the price I sold it,
00:20 and Bitcoin is significantly up. So, how
00:23 did I know it was going to play out that
00:25 way? And, you know, therefore, the huge
00:28 benefit I got. Well, the answer was I
00:30 did the research. Uh, at the time I
00:32 initially bought Ethereum back in 2017.
00:35 Um, it was just I was just getting
00:38 interested in cryptocurrency. Obviously,
00:39 Bitcoin was the biggest, but I did not
00:41 have a good conceptual understanding of
00:44 how the different cryptocurrencies fit
00:46 together and why someone would use one
00:49 versus another and things like that. So,
00:50 I bought mostly Bitcoin, but then I
00:53 bought a little bit of a few other
00:54 things uh that were around in 2017
00:57 because again, I was just, you know, new
00:59 to all of it. And that’s what you do
01:00 when you’re new to all of it is you sort
01:02 of explore and figure out. So,
01:04 ultimately, it became clear as I
01:06 researched in 2021, uh 2020 and 2021
01:10 that the entire cryptocurrency market
01:13 was bifurcating into two different
01:16 industries. One was cryptocurrency used
01:19 as money and the other was
01:20 cryptocurrency or the cryptography I
01:23 should say blockchain technology used
01:25 for smart contracts and Ethereum from
01:29 the very beginning was built as a smart
01:31 contract track platform which means it’s
01:34 basically a platform that people can use
01:37 and it uses cryptography and the
01:38 blockchain to do all sorts of
01:40 interesting and exotic transactions. But
01:43 what Ethereum is not intended to be is
01:46 actual money. Nobody uses Ethereum as
01:49 money. Ethereum is a smart contract
01:51 platform. So what I learned and
01:54 discovered in 2021 was that all of these
01:58 sort of the everything in the world of
01:60 crypto or cryptocurrency was splitting
02:02 into two things. It was either trying to
02:04 be money or it was trying to be a smart
02:05 contract platform. And it became
02:09 very And it became very clear to me in
02:11 2021 that the value was going to almost
02:15 entirely acrue to cryptocurrency as a
02:19 new form of digital money and one in
02:22 which Bitcoin would win. So once I
02:24 understood that one one of these things
02:27 which is Bitcoin is money and the other
02:30 is a utility which is a smart contract
02:33 platform it became clear that the
02:36 problem with a utility platform or a
02:39 utility anything is that it gets
02:41 obsoleted by something else. So, it
02:44 became clear to me in 2021 that Ethereum
02:48 because it was valuable only because of
02:50 its utility, not for its monetary
02:52 properties, made it susceptible to being
02:54 outco competed. And also, any utility
02:58 platform is going to become less
02:60 valuable the more it is used based on
03:02 the nature of how a smart contract
03:04 platform works. Uh, the way a smart
03:06 contract platform works is you have to
03:08 use some of the native token to transact
03:10 on the platform. So if you want to do
03:13 exotic financial transactions on the
03:15 Ethereum platform, you have to use
03:17 Ethereum, ETH, Ether, in order to do
03:20 those transactions. And the hypothesis
03:22 was that would make Ethereum very
03:24 valuable because all of these people
03:26 would be using it and all the people
03:28 would need the token. But what
03:29 inevitably happened was the more people
03:31 that used it, it got more and more
03:33 expensive to transact on the network and
03:35 the more expensive it got, the less
03:37 people used it. And so essentially it’s
03:40 a uh it’s the curse of a smart contract
03:42 platform that the the more successful it
03:46 becomes, the more incentive there is to
03:48 switch to something else where the the
03:50 the transaction fees are lower. And what
03:52 really drove me drove this home for me
03:54 is back in 2021, there was a company
03:56 called Exodus. Uh it currently trades on
03:58 the New York Stock Exchange as EXOD.
04:01 Exodus, which was sort of a
04:03 cryptocurrency wallet platform, and they
04:05 were planning to go public on the block
04:07 blockchain, and they were planning to do
04:08 that on Ethereum. And at the last
04:10 minute, they changed to Algarand because
04:13 the fees were so high on Ethereum, it
04:15 just didn’t make sense. And so
04:17 immediately it occurred to me that wait,
04:19 if if this is how this works, which is
04:21 as soon as it gets expensive, everybody
04:23 just switches to a different platform,
04:25 it became clear that this is going to
04:27 just happen over and over and over. uh
04:29 now it’ll be Ethereum and then the same
04:30 thing will happen to Elgarand the same
04:32 thing will ultimately happen to uh uh to
04:34 Salana and Cardano and all of those
04:37 platforms. So once I understood that
04:38 then it became clear that my only
04:40 interest in all of this was Bitcoin or
04:43 was cryptocurrency as a new form of
04:46 financial system and a new form of
04:48 money. And it became clear to me that
04:50 none of those other things were ever
04:52 going to play that role based on the
04:53 nature of how they were built and
04:54 everything else. So, I sold any anything
04:57 in the world of crypto other than
04:59 Bitcoin. I sold it. Uh, I actually
05:01 didn’t sell it. I converted it to
05:02 Bitcoin, which you could do on these
05:04 platforms. You just say, “I want to
05:06 basically convert Ethereum to Bitcoin.”
05:09 And if you own anything in the crypto
05:10 ecosystem other than a Bitcoin, I would
05:12 recommend that you do exactly the same
05:14 thing. just go in there and say, “Hey, I
05:16 want to convert whatever it is,
05:17 Ethereum, Cardano, Salana, XRP, which
05:20 XRP is just a straight up scam, and
05:23 convert it all to Bitcoin because
05:24 Bitcoin is the one thing that has, you
05:27 know, that will dwarf in value every
05:29 other conceivable thing. And I think
05:31 everything else ultimately will be out
05:33 competed in the long term.” So the uh
05:36 takeaway from all of that is in the
05:38 world of crypto there are there is
05:40 digital money, digital gold, the new
05:43 financial system of the world which is
05:44 Bitcoin and there’s effectively zero
05:46 competition for that right now. So
05:49 there’s that and then there’s smart
05:50 contract platforms like Salana and
05:53 Cardano and uh platforms like that
05:55 Ethereum uh and those are used uh are
05:58 valuable only because of their utility
06:01 not because their store of value
06:03 properties or monetary properties
06:05 because they don’t have any at least not
06:07 good ones. Uh so uh ultimately
06:10 blockchain technology is really only
06:13 really good at one thing which is uh a
06:16 digital scarcity which is valuable for
06:19 money. Which is why the big breakthrough
06:21 of all of it was Bitcoin digital
06:24 scarcity and the ability to build an
06:26 entirely new financial system from
06:28 scratch that is built on nobody being in
06:31 charge with everybody having veto power
06:34 over the network to keep anyone from
06:36 making changes. which is why there will
06:37 only ever be 21 million Bitcoin and why
06:41 you can safely store value in Bitcoin in
06:44 a way you cannot in Ethereum. Obviously,
06:46 if you had tried to store value in
06:48 Ethereum, you would be down more than
06:50 50% in US dollar terms and down much
06:54 more than that in Bitcoin terms because
06:57 while Ethereum has lost 50% of its value
07:00 uh in the last four years, Bitcoin has
07:03 gone up significantly in value.
07:05 Therefore, the difference between
07:06 Bitcoin and Ethereum is even larger than
07:10 the 50% drop in Ethereum because it’s
07:13 the 50% drop in Ethereum on top of the
07:17 uh the outperformance of Bitcoin being
07:20 significantly higher in value than it
07:22 was 4 years ago. So, uh I would not
07:25 store value. Do not use a smart contract
07:27 platform as an investment. If you want
07:29 to do exotic financial transactions,
07:31 which I’m guessing practically zero of
07:33 the people listening to this video or
07:35 watching this video are interested in
07:37 doing exotic financial transactions on a
07:40 smart contract platform. So unless
07:42 you’re actually using it for its
07:44 intended purpose, which is to to do
07:46 exotic financial transactions, then most
07:49 of what people use crypto for is as an
07:52 investment, as a store of value. And for
07:54 that purpose, it’s bit basically Bitcoin
07:56 stands alone as purpose-built for that
07:59 purpose and actually good at that job.
08:02 Everything else in the world of crypto
08:03 will either be outco competed by another
08:06 utility platform or smart contract
08:08 platform or in the case of XRP, it’s a
08:10 tra straight up scam that will
08:12 eventually go to zero. And uh anyway,
08:15 when all the dust settles, there will
08:17 only be one thing left. Uh and that will
08:19 be Bitcoin and then some, you know, tiny
08:22 smart contract platform that that almost
08:24 nobody uses. So if you want an
08:26 investment and you want to store wealth,
08:28 there is one good place to do it and
08:30 that is Bitcoin. So I learned that in
08:33 2021. Glad I did because otherwise I’d
08:35 be way down as compared to where I am.
08:38 Uh and so I’m so thankful I converted
08:40 that Ethereum to Bitcoin in 2021. And
08:42 for anyone holding on to anything that
08:44 is not Bitcoin in the world of crypto, I
08:46 would recommend you do the same. Convert
08:47 it all to Bitcoin. BTC, the real thing.
08:50 Have a great night everyone. Thanks.