I’ll show you the most likely outcomes.
Do you ever hear those stories of how people got into something early, at the ground level and made absurd amounts of cash?
If you had put $1000 into Tesla in 2019 when the price was $23, you’d have made $100,000.00 today. (using stock split figures)
The same would’ve happened If you had the nerve to invest in Amazon after the dot com bubble burst, you could have bought the stock for $8 a share. (before stock split)
$8 a share would have given you 500 times the return on your original investment.
Ethereum, held by 13.1 Million U.S. citizens, is owned by 40% of cryptocurrency holders and has grown 26% since last year.
Based on the size of its market cap, the speed of adoption, and the growing use cases, not taking a closer look at the digital currency would be a dereliction of duty.
The potential upside is beyond belief, and so are the risks.
Now, I’m in no way saying that this will be 500 times your return. I’m just saying that compared to anything else out there, this looks like a pretty strong bet.
It’s got me thinking about why people’s primary approach is sceptical around new technologies.
We aren’t complaining about environmental factors near the scale of technologies we accept, like driving a car, catching a flight or having our holiday lights on.
We aren’t calling fine art, money, gold or diamonds a Ponzi scheme.
After some lengthy research, I think I’ve found the answer.
Innovation and Its Enemies: Why People Resist New Technologies, professor Juma discusses how innovation occurs, the role of experts and why scepticism and confusion are often inevitable.
The Book draws from 600 years of technology history, but here are some insightful takeaways you must know.
- New Technology is constantly under public pressure to stay the same.
- People resist New Technology when the benefits appear to favour a small group. (Mobile phones were meant to be playthings for Rich People)
- New Technologies face opposition when the general public feel benefits only accrue in the long run.
- People are ok with New technology as long as it doesn’t challenge what we already know and our position in the food chain.
If you removed the words “New Technology” from the above and replaced them with “Ethereum”, you’d have an excellent visual for why people are missing this opportunity.
People insist on resisting change until the change becomes our new normal, and we wonder why we ever lived without it.
The most significant resistance to cryptocurrency, and rightly so, is the negative environmental impact Proof-Of Work blockchains are having on the environment.
Ethereum’s successful merge event made the blockchain 99.5% more energy efficient by moving it to a Proof-of-stake network.
Environmentalists were still running with the “ban Ethereum; It’s bad for the climate” line until the news of the update caught up with them.
Here’s Ethereum’s annual energy consumption:
A Ponzi scheme is an investment fraud that pays existing investors with funds collected from new investors. Ponzi scheme organisers promise to invest your money and generate high returns with little or no risk.
Ethereum has no centralised party or single point of failure, so your Ethereum cannot be subjected to fraud. It is also a very risky asset that is currently highly volatile.
There is no 3rd party reinvesting your Ethereum or sending it to another unsuspecting person.
Ethereum has a shot at being our internet money, and its excellent use case is the ‘smart contract’ capability invented by Ethereum Co-founder Gavin Wood.
Smart contracts are self-executing lines of code automatically verified and executed via a computer network with the terms of an agreement between a buyer and seller, removing the need for a middle person.
‘Smart Contracts’ deployed to blockchains make transactions traceable, transparent, and irreversible.
There is nothing transparent about a Ponzi Scheme; Ethereum is the opposite.
While absolutely no one can predict the future, we can use the past as a good measure of what we expect to happen.
Assume we measure the global money in circulation and compare it as a percentage of decentralised digital assets; it’s estimated that digital assets currently make up 0.5% of the global money supply.
Over the next ten years, that 0.5% is either going to go up or it’s going to go down.
- Regulation and government control may make it go down.
- People becoming more digitally native and progressively moving into a more digitally immersive world may increase it.
It’s my view over a long-term time horizon; it will go up. Remember, none of this is financial advice.
Play with money you can afford to lose, and you’ll be fine.
This thesis is backed by the most widely followed Cryptocurrency expert and thought leader in the space.
Pseudo-anonymous Twitter user Punk6529 uses this “expected value outcome” and has done since the inception of Both Bitcoin and Ethereum.
Ethereum’s market cap currently sits at an estimated 0.16% of the global money supply.
Here are the outcomes based on an investment of $1000 and Ethereum increasing from its current 0.16%.
Ethereum Increases to 1.6% = $10,000
Ethereum Increases to 3.2% = $20,000
Ethereum Increases to 6.4%= $40,000
Ethereum Increases to 16%= $1000,00
You will ultimately have to decide whether you believe in Ethereum’s future potential.
If you want to read more of my takes on Web3, consider becoming a member. Your membership fee directly supports the writers you read. I’ll earn a small commission if you sign up using my link CLICK HERE.
This article is for informational purposes only; it should not be considered financial, tax or legal advice. Consult a financial professional before making any significant financial decisions.