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📅 February 29, 2024 · 🕒 10:00AM EDT |
KIS-30: Ok so what's next?
5 min read
Hey Reader,
Note from the editor
🎉 Welcome to Issue #30 of the keepitasatoshi.com newsletter, where we examine the top crypto asset projects and their communities.
In this edition, we're diving into the aftermath of the Bitcoin ETF's success and what the horizon holds with the potential launch of an Ethereum ETF. We'll explore the foundational differences between Bitcoin and Ethereum, the implications of an Ethereum ETF, and the future of the Ethereum ecosystem.
Stay curious, stay informed, and as always, #KeepItASatoshi!
KB
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Bruh. Bitcoin is $60,000. And this is BEFORE the halving. I just wanted you to know that.
Anyways, in our journey through this stressful but amazing world of crypto assets, we've witnessed the unprecedented success of the Bitcoin (BTC) ETF, pushing bitcoin soaring above $60K.
This move, largely attributed to chess moves by Larry Fink and BlackRock, has brought about a pivotal change, capturing the attention of both crypto degens and traditional finance (TradFi) sectors alike.
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Miners are producing 900 BTC a day but these ETFs want 9000. And the halving drops this to 450 in less than 2 months. Price has nowhere to go but up.
But as the dust settles on this remarkable achievement, the obvious question is: "What's next?" The answer, it seems, is so obvious we shouldn't even have to ask—an Chainlink...I mean Ethereum (ETH) ETF.
Understanding Ethereum (ETH)
To fully grasp the potential impact of an Ethereum ETF, let's first delve into the essence of Ethereum and its distinction from Bitcoin.
- Bitcoin (BTC): As the progenitor of cryptocurrencies, introduced in 2009, Bitcoin revolutionized the financial landscape by offering a decentralized digital currency, free from the control of any central authority. Its primary function is as a digital store of value and a medium of exchange.
- Ethereum (ETH): Introduced in 2015, Ethereum builds on Bitcoin's innovation with a significant twist – it's not just a cryptocurrency but also a platform for running decentralized applications (dApps) and smart contracts. Smart contracts as we mentioned in Issue #25, are self-executing contracts with the terms of the agreement directly written into lines of code, enabling a vast range of applications, from finance to gaming.
Bitcoin vs. Ethereum
While both crypto assets serve as the cornerstone of the crypto asset industry, their core purposes and technological frameworks differ significantly. Bitcoin is primarily seen as 'digital gold,' a store of value and a safeguard against economic fluctuations.
Ethereum, however, aspires to be a global computing platform, facilitating the development and deployment of dApps and smart contracts, thus paving the way for a decentralized digital economy. An usually, economies are much larger than money itself.
The Impact of an Ethereum ETF
The prospect of an Ethereum ETF brings with it a host of implications for the Ethereum ecosystem and the cryptocurrency market at large. Don't forget the integration of EIP-1559 made ETH deflationary.
This means total supply can actually decrease making each ETH even more precious. Also:
- Increased Accessibility: Mirroring the Bitcoin ETF, an Ethereum ETF would simplify the process for both retail and institutional investors to gain exposure to ETH, bypassing the need for direct interaction with the complexities of cryptocurrency exchanges and wallet management.
- Legitimization and Regulatory Clarity: The approval and subsequent launch of an Ethereum ETF would further legitimize the crypto asset sector, potentially fostering wider acceptance of staking and integration into traditional investment portfolios. Leading to more ETFs.
- Market Dynamics: The influx of institutional capital into Ethereum could enhance liquidity and possibly drive up the value of ETH. However, it remains to be proven if a deflationary token is actually the right model for something that wants to power the world. No one wants $200 gas fees bro.
Exploring the Ethereum Ecosystem
So, if Ethereum serves as a vast platform, how does one go about utilizing it? The first step is acquiring an Ethereum wallet, such as MetaMask, and some ETH to facilitate transactions.
This might sound straightforward, but there's a catch – gas fees. Those familiar with Ethereum know that transaction fees, or "gas," can sometimes be prohibitively expensive, especially during peak network usage. That joke about $200 gas fees wasn't a joke?
Enter the heroes of our story: Layer 2 solutions (L2s). These innovative platforms, such as Arbitrum, Optimism, Base, and Polygon, (and many many many others) offer a solution to the high fees and slow speeds on Ethereum by processing transactions off the main chain.
This means you can engage with everything Ethereum has to offer—from DeFi to NFTs—without the price tag. I wonder what our next issue will be about?
📢 We Want to Hear From You!
As we explore the evolving landscape of cryptocurrency investments and the potential of Ethereum's expansion with Layer 2 solutions, we're eager to hear your thoughts.
How do you view the introduction of Bitcoin ETFs and the anticipated Ethereum ETF? And what about Layer 2s—have you used a bridge before? And if you don't know what that means why aren't you asking AI immediately?
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