With Ethereum's Shanghai Upgrade around the corner, I thought it would be a great time to talk about why WHY ETHEREUM WILL OUTPERFORM BITCOIN IN 2023 (yes, I know we’re basically in April already). That’s right. Thanks for reading CoinSheet! Subscribe for free to receive new posts and support my work.
I jest, I jest. We know that occasionally, situationally, and with proper context, it’s sometimes FUN to be a maximalist! (like when discussing 90s nostalgia, music, why the book is better than the movie, or why British food is complete garbo). When it comes to potential investments, history has already told us that it’s probably best to be open-minded. But like, I don’t even know why I needed to write that…because my readers are smart, and they know that maximalism is a silly belief to hold in general, because it’s kinda foolish to assume that one option is always superior to all others.
Anyways, let’s get into it. Here’s why Ethereum will outperform Bitcoin in 2023. (In a particular, non-particular order) 1. Continued growth in DeFi and NFTsEthereum is the primary blockchain for DeFi applications and NFTs. As these industries continue to grow and gain mainstream adoption, demand for Ethereum will increase. Turns out all that 2019-2021 meme talk about “AdOpTiOn” and “NfT’s” is actually beginning to play out. Brand name companies who’ve been experimenting with web3 tech are finally beginning to roll out and beta test products…that are….like…you know, starting to sound like something real. Too many to list here, but the latest one I’ve seen that I thought was cool was by Ticketmaster who launched NFT-gated pre-sales. Imagine a world where you’re trying to get access to that Justin Bieber concert. But those dang scalpers are always buying up the tickets and reselling for some egregious markup.  BREAKING: Ticketmaster launches NFT-gated pre-sales. The use case I've been waiting for. 1) Go to the pre-sale link 2) Connect your wallet 3) Hold the right NFT → get verified 4) Buy your ticket No queue. No scalpers. No bots. This is the best version of "Verified Fan". Now, imagine you were a verified fan, holding the right NFT, you could just buy your tickets. They tested it with Avenged Sevenfold (@TheOfficialA7X) 10k holders of their Deathbats Club were offered early access to NYC & LA shows in June. It crushed → 1k members purchased → Incredible 10% conversion Today they rolled it out for 13 more dates & made it avail to others They recently tested it with Avenged Sevenfold, looks promising. This is just ONE example. 2. Upgrade to Ethereum 2.0Is it winter? What’s coming? Oh, it’s just that the long-awaited phased-out upgrades to Ethereum 2.0 are finally beginning to hit production. The “merge” or whatever happened back in September 2022. (you know, those are some upgrades that will improve the scalability, security, and sustainability of the Ethereum network, making it more attractive to users and investors). And on April 12, 2023 the Shanghai Upgrade will go live (EVEN MORE UPGRADES). The immediate effect of this upgrade is that approximately 16 million staked ETH will be available for withdrawal. Crypto analyst/traders/etc… in the crypto industry are closely monitoring the potential impact of the Shanghai Upgrade, as there are varying opinions on how it may affect the market. Both optimistic and pessimistic views are contributing to the ongoing discussions. yada, yada, yada, etc…etc… Now, contrary to popular belief, I’m no economist… But even when I apply my rudimentary understanding of supply & demand, it becomes evident that when there is suddenly MORE of something available, it will, at least in the brief interim, cost less. (Key word there being brief interim, meaning like, momentarily.) Now consider the following, and forget about Ethereum for a second. What do YOU think will have a greater impact on the price of something.
 Shanghai upgrade FUD is psyop cause bankers want your $ETH, supply overhang isn't enough to fill their bags. Excess supply won't be enough to meet the growing demand for internet money. 3. Institutional adoptionThis isn’t 2017 anymore. Bitcoin is now legal tender in El Salvador and we’ll probably end 2023 with Brazil finally legislating Bitcoin as legal tender as well. Bitcoin is becoming the boomer coin. (which isn’t a bad thing) According to a August 2022 PwC report on crypto hedge funds, more than a third of traditional hedge funds now invest in digital assets, nearly double a year ago. As more institutions enter the cryptocurrency market, they may be more inclined to invest in Ethereum because:
4. Ethereum's developer communityThe largest and most impressive developer community in crypto. The largest IQ’s and weakest social skills (bullish). Constantly working on improving the network and creating new apps, occasionally some scams, but mostly apps. This community drives innovation on the Ethereum network. With ChatGPT and AI assisted coding tools, expect development to proceed faster than ever before. 5. Increased adoption of Ethereum-based stablecoinsEthereum is the primary blockchain for stablecoins like Tether (USDT) and USD Coin (USDC). As the use of stablecoins continues to grow, the demand for Ethereum should increase. 6. Potential for Ethereum to be used as a store of value & medium of exchangeIn the context of digital monies, being a store of value is usually considered a uniquely “Bitcoin’esq” trait. But like, Ethereum also has the potential to be used in this way. And what I like about Ethereum is that there isn’t yet a strongly held narrative about it’s utility as a store of value / medium of exchange (the current perception is that it’s primarily a platform for building decentralized apps). Remember, in the 1960’s, the internet originally started as a way for government researchers to share information. And eventually became the world’s largest repository of cat pics and lewd photos. With the right combination of stability, adoption, security, and scalability…our perception of Ethereum could also change, as it’s emergent properties could become more apparent. Tbh, Ethereum based stablecoins are already sorta like the alpha-tests for these properties. Expect to see more discussions related to this in 2023. 7. The TeChNiCaLsMeme lines looking good bruv.
The endThanks for reading. I know ya’ll haven’t heard from me in a while. I just missed ya’ll and felt like throwing something out there. That’s all for now. See you later space Cowboys -Dmitriy Thanks for reading! Subscribe for free to receive new posts, whenever those are.
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Friday, March 31, 2023
Why Ethereum will outperform Bitcoin in 2023
