500 - The Daily Gwei #122
Let's not get too crazy in this coming bull market, okay?
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What a wild day in the markets today with ETH finally hitting $500! The last time ETH was at $500 was July of 2018 and that was during a downturn so it’s really been about 3 years since ETH touched $500 in a bull market. To be honest, I’m in a bit of disbelief myself after having lived through an incredibly dark and brutal bear market and I’m sure I’m not alone in this feeling!
Bull markets are fun - really fun - but I believe that we should try really hard to preserve the amazing ecosystem we’ve built in Ethereum over the last 2 and a half years. There will be plenty of new people coming into our community over the next few months which means inevitably the signal will go down and the noise will go up dramatically. If this is your first crypto bull market, all of what’s about to come can be incredibly disorienting and you need to be careful.
My best piece of advice for readers who may be newcomers is to stay grounded and think through every decision you make carefully. It will be very tempting to try and chase every coin/token that is pumping on any given day but the best thing you can do is pause and think about what you’re throwing your money into. Are you just buying it because it’s going up or do you actually think it’s something worth investing in on a fundamental level? Are you okay with losing the money you invest for whatever reason? Have you considered what taxable events you may incur if you’re doing a crypto to crypto trade? This, of course, isn’t investment or financial advice but I do believe you should be asking yourself these questions before throwing money at anything.
On a more positive note, this bull market is going to be a lot more exciting than 2017 for the newcomers because now we have a tonne of toys for them to play with. In 2017, it was mostly ICO’s and we had some very crude decentralized exchanges like EtherDelta. Now, we have an entirely on-chain financial system that can give people a real and lasting alternative to the traditional system . Honestly I think this is going to blow people’s minds - especially those that were around in 2017 but left during the bear market. Even the simple things like earning an outsized yield on your dollars is going to draw in so many new people.
On top of this, we have so many exciting things going live during this bull market including layer 2 systems for scalability and better user experience, the eth2 rollout so that users can finally stake their ETH, a tonne of new DeFi projects that have been building in quiet over the last few months, upgrades to existing projects and so much more. It really is incredible that in 2017 it was literally all about ICO’s with some hype about eth2 but now Ethereum has a bustling ecosystem of real and lasting value for users to take advantage of.
I wrote my piece on playing long-term games back in September when the market was coming off of the DeFi mania high and I think that even in bull markets it’s especially important for people to be playing the long game. This is simply because it’s very easy to undo years of work in just a few weeks if you were to forego your senses and let greed get the best of you. Stay humble!
Have a great weekend everyone,
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All information presented above is for educational purposes only and should not be taken as investment advice.