Ethereum the Disruptor - The Daily Gwei #207

Disrupting many industries at a time.

I don’t think it’s controversial to say that the Ethereum network can do much more than what the Bitcoin network can do and that is by design (obviously). Because of this, many in the community consider Ethereum to be more disruptive than Bitcoin across many different industries - finance, collectibles/art/gaming, web3 and more.

Now what is controversial to say is that ETH as an asset is equal to if not better than BTC as an asset. Many of the arguments you’ll hear from both the BTC and ETH camps are highly subjective which is why the only real metric we can look at for what is “better” is market cap (which is a flawed metric in of itself anyway). Though I think it all boils down to one major thing: Bitcoiners prefer the monetary policy to never change whereas Ethereans are okay with a flexible and pragmatic approach to it. In other words, Bitcoiners want BTC to keep its hard cap and halving schedule no matter what (because that’s what it’s been since the beginning) whereas Ethereans have been fine with experimenting over the years to get to where we are today (minimum necessary issuance).

Outside of the above (and more importantly), Ethereum’s continued experimentation and iteration on many different use-cases gives it a major edge as a network. DeFi, NFTs and DAOs were all born on Ethereum and continue to blossom on there - attracting legions of the brightest researchers and developers to work on it all. And due to Ethereum’s open and permissionless nature, this all leads to massive compounding effects where the new “money legos” that one team builds can be used by countless others (a perfect example here being DAI). This is why Ethereum’s network effects are so strong and a major reason why the EVM is the moat.

Now all of the above isn’t to say that Bitcoin doesn’t have its place or value but it has firmly settled into the “digital gold” narrative which is really a niche area in finance and really just boring. People will buy BTC, hold it, number may or may not go up and they’re happy just doing this. People can also do both - hold BTC and/or ETH and participate in Ethereum all the same - the network doesn’t discriminate based on what assets you hold.

I’m not a Bitcoin/BTC bear (even though I don’t hold any) and actually think it’s pretty cool that we’re going to see two grand experiments play out over the next few years. Though for myself and many like me, Ethereum is just a much more interesting ecosystem to be apart of because of all the stuff being built. After all, I write this daily newsletter and do a daily video recap and I still can’t keep up with it all!

Have a great weekend everyone,
Anthony Sassano

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All information presented above is for educational purposes only and should not be taken as investment advice.