The Ethereum Merge occurred back in September,
but since then,
not only have the price has been moving up,
but also the amount of Ethereum coming into the supply,
well, it's gone negative.
Find out what this means and why this could be the thing
that finally makes Ethereum flippen Bitcoin.
Let's get it!
Welcome to BitBoy Crypto!
My name is Ben.
And today we're going to be talking about Ethereum
and what the tokenomics mean going forward.
It's absolutely phenomenal.
I'm going to show you a chart I put together on Bitcoin
that's going to--
a spreadsheet
that's going to explain a lot of why Ethereum is currently better than Bitcoin tokenomically
and will be for quite some time.
So, what is The Merge?
The Merge upgrade is Ethereum's long-awaited migration from proof-of-work to proof-of-stake,
basically, from mining to validator nodes that hold Ethereum.
That's our incentive for pushing transactions forward.
It was officially kicked off by Bellatrix on September 6, 2022.
And so, basically, the long and short of it,
since then, Ethereum initially began adding to the supply at a very small number.
It was supposed to drop the inflation rate 97.5%.
You've got to see to believe how low it is now.
Then we have this.
$4.6 billion in Ethereum up in flames since EIP-1559.
This is January 21.
But this is really what I want to show you.
Ethereum Improvement Proposals, that's what EIP stands for.
1559 was launched in August of 2021.
A lot of people didn't know what it was going to do,
if it was going to be helpful.
But this is what it did.
It was implemented,
and a grand total of 2.8 million ETH has been removed from circulation
or roughly $4.6 billion at today's prices.
In just the last seven days, the Ethereum protocol has destroyed more than 16,364 ETH
at an estimated rate of 1.62 ETH per minute.
Now, here's what it does.
The burn mechanism means there's more ETH being destroyed than being issued to miners.
Supply growth has now dropped to -1.06%.
The idea was this.
They had to fix the max supply because there wasn't one.
It was totally uncapped.
And a lot of people were extremely worried that Ethereum would eventually balloon
and have inflation problems like the US dollar.
However, EIP-1559 was voted on and placed in order,
so now a portion of the Ethereum fees, the gas fees, well, they're burned
and at higher points of congestion, when there's more usage on the network,
they get burned at a higher rate.
So the more people are using Ethereum, the more ETH is going to get burned.
We weren't sure--
we knew it was going to help,
but we weren't sure how much,
and we've been blown away by the results.
Now, of course, Bitcoin, right?
Bitcoin has the halving.
The estimated date is Tuesday, May 14, 2024.
Many people believe this is going to end up in March
because the hashrate starts picking up as you get closer to the halving
as miners try to get their last rewards.
Now, why am I telling you this?
Well, I'm telling you this because Bitcoin halving is the thing that drives the Bitcoin price.
It's what makes it tokenomically superior to everything else.
50% of the block rewards are cut every four years approximately,
usually, about 3 years and 10 months.
And so let's look at what this actually looks like in numbers.
This is insane.
In 2009, you had 50 Bitcoin per block.
That means in the first four years of Bitcoin's life,
10,500,000 were brought into supply.
Half of the entire supply was mined the first year.
That's why Satoshi is so rich.
In 2012, they dropped to 25.
They half every four years, you can see, approximately.
5.25 million were brought into the supply.
Now, what I've got over here,
this is the total amount of circulating Bitcoin at the end of each cycle.
So you can see, it goes from 10.5 million,
15.75 million,
18.37 million,
19.68 million,
20.34 million,
and it goes on from there.
But let's look at these numbers
because they're really really, really insane here when you get to the end of this cycle,
or the end of Bitcoin's halving cycles will be 2140,
when all the blocks are mined.
Miners can still make money through pushing transactions.
That's a whole other story.
As you can see, my math added up perfectly here.
21 million total Bitcoin.
That's what happens.
This is the amount that comes in every supply and added up perfectly to 21 million.
That's how I know I did it right.
And check this out.
In the last cycle,
the block rewards are 0.000000005820766091.
You can't even put that on a calculator.
In the last cycle,
there will be 0.001222360879 Bitcoin brought into the supply in four years.
And if you look here, what's really interesting in my chart,
it's so close to the total supply,
2128,
four cycles away from the end of the Bitcoin cycle pattern,
that my Google Sheet was like,
"Nah. Just call it 21 million."
For the last three cycles.
It's unbelievable!
And in real time, if you think about this,
right now, on average, we're seeing 900 Bitcoin mined per day
brought into the supply.
450 will be brought into supply in the next cycle per day.
And if you like that we do things like this,
cover Bitcoin,
we make nice fancy charts for you,
compare Ethereum to Bitcoin,
make sure to check out BitBoy Crypto.
All you've got to do, hit that subscribe button.
Don't forget, we got a lot of other fun channels for you to subscribe to as well.
Smash that like button while you're at it.
So here we go.
Back to Ethereum.
I want to show you all that about Bitcoin because it's phenomenal.
It's unbelievable how good the tokenomics for Bitcoin are.
Now, Ethereum's tokenomics are better than Bitcoin's.
It's actually a better digital gold right now and for the foreseeable future than Bitcoin.
This is where we're going to see a dual utility of Ethereum.
Look at this.
Absolutely insane.
So here we go.
You see the supply.
This was the supply.
At the day of The Merge, it went up.
You see we're seeing it go positive.
It did negative briefly.
And then it came up.
And now look how far negative it is.
0.023% to the downside.
Now, with proof-of-work,
look what this would have been.
Ethereum
Bitcoin
Ethereum
Bitcoin
Bitcoin was having less brought into the supply than Ethereum.
But now it has changed.
-11,093 Ethereum since The Merge.
Check this out.
Simulate proof-of-work.
That's -11,000 versus 1.7 million ETH we would have had
with Ethereum mining and proof-of-work.
So these are the effects of EIP-1559.
They are burning 1.911 million ETH a year.
However, more ETH was getting brought into the supply to balance that out.
Since the burn, 551 days ago since it started,
2.47% per year supply growth,
but right now we're seeing that number go down
because of so much burning.
And the issuance right here, 4.93 million,
but so many of those are getting burned.
You look at the gas.
You can look at projections for what this is going to look like over time.
ultrasound.money is this website.
This is what you need to take away from this.
Ethereum is going backwards in supply.
It's shrinking.
Bitcoin has an emission rate.
It's bringing more coins into the supply up to that 21 million number.
That means that, technically, when more Bitcoin comes into the supply,
your Bitcoin should be worth a little bit less.
But with Ethereum, with ETH coming out of the supply,
your Ethereum should be worth more.
And in the bull run, this is going to be insane.
Just wait for the bull run, the highest congestion.
It's going to be absolutely phenomenal.
Here we go.
Here are the stages of ETH 2.0.
We've got The Merge that already occurred,
The Surge,
The Scourge,
The Verge, The Purge, The Splurge.
We got a lot more steps to go before ETH is in its final form.
And each of these are helping the network,
but that's going to be very slow because these roadmaps take a long time.
The digital gold narrative is also going to continue getting pumped
during this entire time.
If you like this ETH jersey,
if you're all in on ETH and you think ETH is going to flippen Bitcoin,
which I do believe, this cycle, this is going to be the main reason why,
check out our Ethereum jersey.
$49.99 to sport this bad boy.
Look at that.
ETH, let's go!
That's all I got.
Be blessed.
BitBoy out.