Egggyolk, what’s cracking with those who never miss a dose, the Chico Army & if you’re
interested in joining that crew, subscribe & drop the title of viewer of the tube.
My name’s Tyler and welcome to the channel, you can’t help but jump right into…bob
just like a cork for this content.
It’s time for Chico Crypto!
1 Bitcoin or 32 Ether?
What is the smartest choice if you had to pick only 1?
If you're still working your way towards the goal of accumulating this much of each asset,
which one should you accumulate 1st?
Which asset class do I believe will perform better, integrating itself into society further
than the other?
Which “club” will be more elite, the BTC 21 million club, or the Ethereum 32 ETH club?
Well let’s look at it based on Categories, and number 1 let’s begin with what we know,
what are the current prices for 1 BTC or 32 ETH, what is more cost effective? and what
was the performance of each over the past year aka which has better recent ROI return
on investment?
Well as we can see, yesterday, 1 Bitcoin was worth just over 11 grand, 11 thousand 414
bucks.
32 Ethereum on the other hand was worth 12 thousand and 24 bucks.
So it is more “cost effective” or cheaper in USD terms to pick up 1 BTC.
Although which asset has performed better year to date?
Pulling out the charts since January 1st.
BTC started at about 7193 and today we are at 11 thousand 414.
This is an increase of over 58 percent.
Ethereum started at about 130 bucks and today it’s at about 375...that’s an increase
of over 188 percent.
Sooooo Ethereum has performed better, and…... back in January of this year, you could have
purchase that 32 Ether for much cheaper than a BTC instead of more like today...it cost
$4160 bucks, and BTC was $7193 bucks.
More cost effective right now?
BTC...but better recent performance ROI?
Ethereum!
Now, what can you do with your asset?
Besides overall price increase for long term hodling?
What benefits do you currently enjoy?
What’s the asset value use cases?
BITCOIN, well you can hodl it, and that’s about it.
Most of the options to earn any sort of interest on your BTC is centralized.
Like BlockFi, crypto interest accounts, and as we can see with holding 1 Bitcoin with
them, you could earn 12.79 a week, or over 664 dollars per year!
Although like I said, this is centralized, and the option is for other crypto assets
too, including Ethereum...so it really doesn’t set itself apart.
What are the DeFi, decentralized options, as that is what BITCOIN was made for.
To be Decentralized.
Well there are actually options for BTC, and most of it’s running through the lightning
network.
If you didn’t know, the lightning network has had some rough roads form it’s inception,
and total value locked up, is just again finding it’s feet...but still it’s tiny, only
12 million as of yesterday.
But here is where your DeFi on Bitcoin is happening.
And they do have some stuff, LN markets is a lightning channel for trading BTC derivatives
but, since it is a lightning channel we can see how much is moving through this...their
lightning channel nodes capacity as it.
From 1ml.com, which tracks the network, capacity is just 7.13 BTC or nearly 79 thousand dollars.
Now Ethereum also has something just like this.
Called dydx.
It’s also decentralized margin trading, for not only ethereum, but also against two
stablecoins dai and usdc.
And because of this much larger activity, trading volume yesterday was over 1.2 million
& it’s powered by decentralized lending and borrowing pools, where interest can be
earned for the lenders.
Now through a BTC sidechain, called Rootstock, bitcoin is getting a slightly more robust
DeFi platform, called Money on Chain, which includes the first bitcoin stablecoin, doc,
dollar on chain, bpro token, which is designed to allow a person to earn a rent on bitcoin
positions, and gain free leverage, and finally btcx, a leveraged llong bitcoin holding position
token & the MOC the governance token for the smart contract.
Now let’s just go to the dashboard to see how deep this DeFi protocol is, total RBTC,
rootstock BTC, in the system, is about 132 or about 1.4 million dollars.
And this is split between their defi token offerings.
Not a lot, compared with Ethereum DeFi protocols & offerings, but not bad for only being out
since April of this year, and making up about a third of the supply of rBTC, as 378 are
currently locked
Now, these are the top DeFi btc procools, and combined lightning and rootstock’s sidechain
still make up under 20 million dollars.
It’s nothing compared to the 10.68 billion of ethereum DeFi, not even 1 percent...it’s
just .187 percent.
So, I don’t have to beat a dead horse regarding this, when it comes to DeFi and what you can
do with your asset, Ethereum takes the cake.
But DeFi is for the people, what about institutional involvement in each of the assets?
Well I’m sure you’ve seen the developments.
Institutional trading with CME, Bakkt & they only allow BITCOIN futures right now...but
Ether may be coming soon, last Friday, Coindesk dropped this article “CME sounding out crypto
traders to gauger market demand, for Ether futures, Options.
And the article states Darius Sit, founder at Singapore based QCP capital, in an interview
with CME, they asked his interest in trading Ether on the exchange.
Ether institutional trading isn’t there yet on a large scale, but may be coming soon.
But then, you also have to look at the big Bitcoin buys, from big players...just a few
weeks ago, we learned Micro Strategy CEO and founder, bet even bigger with his company...upping
it to 425 million & then late last week we learned Jack Dorsey, put 1 percent of squares
total assets towards bitcoin, totalling 50 million.
They are adding these purchases to their companies corporate reserves, it’s long term bets,
because they see long term potential.
You don’t see this with Ethereum, no large entity, outside of crypto has announced they’ve
made a big asset purchase of Ether.
Ya no one has announced it...In April of this Adam Cochran, put out an excellent article,
called th 10k audit, where he manually audited the top 10k ethereum wallets, to analyze them
and see what whales were doing.
He had many findings 32 to be exact, ranging from #2 distribution data, #7 an influx of
new whales, and even shady things like #23 bitfinex using user funds to vote on the eth
progpow proposal.
But #25 is the one we are interested in...the big players are buying.
It says “We were also able to identify wallets associated with major players such as JPMorgan
Chase, Reddit, IBM, Microsoft, Amazon and Walmart”
Behind the scenes accumulation?
According to Adam’s research, yes!
Now, as good as that is, Bitcoin still takes the cake on institutional interest and developments,
but things could change really quick for ETH.
So right now, 32 ETH is more expensive, but it has had better ROI recently.
It also has DeFi behind it, which is an over 10 billion dollar behemoth.
Now 1 Bitcoin is cheaper, but it’s ROI has been less, but still good.
Bitcoin’s DeFi is a dwarf compared to Ethereum, but institutional infrastructure is there,
and large enterprises are announcing their purchases.
Hard to officially make a choice huh?
It’s like making a pick between your Ma or your Pa, sister or brother.
If your crypto is involved, they both feel like family.
But if you're gonna force me to make a decision, it all comes down to this.
Staking.
BITCOIN is setting itself up for security, where the security of the network is controlled
through proof of work mining.
Ethereum, since July 2015, has been similar, using the ETHHash algorithm, to secure it’s
network through proof of work and mining.
Now, just holding the two assets: bitcoin and ethereum, the only benefit, by just holding
is the prospect of future gains.
That is it.
Right now, both networks mining and transaction fees are distributed to the miners who secure
the network.
BITCOIN mining started out for the people, where any one with a computer who had a CPU,
could partake in the mining process, but then GPUs came, and finally the powerful ASICs.
Even by 2014, profitable mining was out of the hands of the majority of the public with
Bitcoin...thus when Ethereum launched it’s proof of work, they said the algo was designed
to be ASIC resistant, and only GPUs and CPUs could mine the ethhash algo.
Buttt, you can’t stop specialized mining machines for specific algos...it came for
Ethereum, and just now...it’s starting to show it’s ugly face.
And it’s not ASICs...its FPGAs, or Field Programmable Gate Array Chips, which have
comparable power to ASICs, but are more flexible, in what they can mine.
Now, I want to go to the ethermining subreddit, and this post 17 days ago “Question: what
site could I buy an ASIC from that is actually Legit?” & the top most upvoted comment is
“The A10 is not an ASIC.
There are no Ethereum ASICs.
ETH is a memory-intensive application and not FGPA friendly”
But you gotta go deeper, than just the 1st comment...down below, a David Stanfill says
“Tell that to the thousands of people mining ETH on FPGAs…& a commenter says “prove
it”.
David replies “There is a whole FPGA discord full of people mining ETH on FPGAs more power
efficiently than GPUs.
It isn’t exactly a secret.
I should know, I designed them”
What?
Well I found the FPGA discord here...and I did a google search of David Stanfill Ethereum
& the 1st post is an ethereum EIP, clicking into it...we can see, that yes a David Stanfill
is a developer submitting EIPs to Ethereum, and this one “modifies ethash in order to
break ASIC miners specialized for the current ethash mining algorithm”....so, this isn’t
just a random commenter & fpga’s and ASICs are going after Ethereum…
That is why they are moving to proof of stake, to bring the value of securing the network,
to more people...as mining centralization begins to show it’s ugly face.
And this is why I think 32 Ethereum just may be better than 1 BTC...going back to Adam
Cochran’s finding’s…#3 is “How Much ETH is There?” and in it that detailed finding
section he goes into staking, and he puts together a rough estimate of rewards...early
phase 0, beacon chain...which is coming soon?
He predicts 17-20 percent yield, APY…
And then, just look behind the scenes..our Congress, put together a letter over the summer,
for the IRS...asking them to make staking rewards, tax free until chased out.
That is why.
Cheers viewers I’ll see you next time!