I sold Ethereum at 3600 and went 100 percent Bitcoin!

00:01 Hey everyone. Back in 2021, about 00:04 exactly four years ago, I sold what 00:06 little Ethereum ETH that I owned and 00:10 used the proceeds to buy 100% Bitcoin. 00:13 And since then, Ethereum is down 50%, 00:17 literally 50% from the price I sold it, 00:20 and Bitcoin is significantly up. So, how 00:23 did I know it was going to play out that 00:25 way? And, you know, therefore, the huge 00:28 benefit I got. Well, the answer was I 00:30 did the research. Uh, at the time I 00:32 initially bought Ethereum back in 2017. 00:35 Um, it was just I was just getting 00:38 interested in cryptocurrency. Obviously, 00:39 Bitcoin was the biggest, but I did not 00:41 have a good conceptual understanding of 00:44 how the different cryptocurrencies fit 00:46 together and why someone would use one 00:49 versus another and things like that. So, 00:50 I bought mostly Bitcoin, but then I 00:53 bought a little bit of a few other 00:54 things uh that were around in 2017 00:57 because again, I was just, you know, new 00:59 to all of it. And that's what you do 01:00 when you're new to all of it is you sort 01:02 of explore and figure out. So, 01:04 ultimately, it became clear as I 01:06 researched in 2021, uh 2020 and 2021 01:10 that the entire cryptocurrency market 01:13 was bifurcating into two different 01:16 industries. One was cryptocurrency used 01:19 as money and the other was 01:20 cryptocurrency or the cryptography I 01:23 should say blockchain technology used 01:25 for smart contracts and Ethereum from 01:29 the very beginning was built as a smart 01:31 contract track platform which means it's 01:34 basically a platform that people can use 01:37 and it uses cryptography and the 01:38 blockchain to do all sorts of 01:40 interesting and exotic transactions. But 01:43 what Ethereum is not intended to be is 01:46 actual money. Nobody uses Ethereum as 01:49 money. Ethereum is a smart contract 01:51 platform. So what I learned and 01:54 discovered in 2021 was that all of these 01:58 sort of the everything in the world of 01:60 crypto or cryptocurrency was splitting 02:02 into two things. It was either trying to 02:04 be money or it was trying to be a smart 02:05 contract platform. And it became 02:09 very And it became very clear to me in 02:11 2021 that the value was going to almost 02:15 entirely acrue to cryptocurrency as a 02:19 new form of digital money and one in 02:22 which Bitcoin would win. So once I 02:24 understood that one one of these things 02:27 which is Bitcoin is money and the other 02:30 is a utility which is a smart contract 02:33 platform it became clear that the 02:36 problem with a utility platform or a 02:39 utility anything is that it gets 02:41 obsoleted by something else. So, it 02:44 became clear to me in 2021 that Ethereum 02:48 because it was valuable only because of 02:50 its utility, not for its monetary 02:52 properties, made it susceptible to being 02:54 outco competed. And also, any utility 02:58 platform is going to become less 02:60 valuable the more it is used based on 03:02 the nature of how a smart contract 03:04 platform works. Uh, the way a smart 03:06 contract platform works is you have to 03:08 use some of the native token to transact 03:10 on the platform. So if you want to do 03:13 exotic financial transactions on the 03:15 Ethereum platform, you have to use 03:17 Ethereum, ETH, Ether, in order to do 03:20 those transactions. And the hypothesis 03:22 was that would make Ethereum very 03:24 valuable because all of these people 03:26 would be using it and all the people 03:28 would need the token. But what 03:29 inevitably happened was the more people 03:31 that used it, it got more and more 03:33 expensive to transact on the network and 03:35 the more expensive it got, the less 03:37 people used it. And so essentially it's 03:40 a uh it's the curse of a smart contract 03:42 platform that the the more successful it 03:46 becomes, the more incentive there is to 03:48 switch to something else where the the 03:50 the transaction fees are lower. And what 03:52 really drove me drove this home for me 03:54 is back in 2021, there was a company 03:56 called Exodus. Uh it currently trades on 03:58 the New York Stock Exchange as EXOD. 04:01 Exodus, which was sort of a 04:03 cryptocurrency wallet platform, and they 04:05 were planning to go public on the block 04:07 blockchain, and they were planning to do 04:08 that on Ethereum. And at the last 04:10 minute, they changed to Algarand because 04:13 the fees were so high on Ethereum, it 04:15 just didn't make sense. And so 04:17 immediately it occurred to me that wait, 04:19 if if this is how this works, which is 04:21 as soon as it gets expensive, everybody 04:23 just switches to a different platform, 04:25 it became clear that this is going to 04:27 just happen over and over and over. uh 04:29 now it'll be Ethereum and then the same 04:30 thing will happen to Elgarand the same 04:32 thing will ultimately happen to uh uh to 04:34 Salana and Cardano and all of those 04:37 platforms. So once I understood that 04:38 then it became clear that my only 04:40 interest in all of this was Bitcoin or 04:43 was cryptocurrency as a new form of 04:46 financial system and a new form of 04:48 money. And it became clear to me that 04:50 none of those other things were ever 04:52 going to play that role based on the 04:53 nature of how they were built and 04:54 everything else. So, I sold any anything 04:57 in the world of crypto other than 04:59 Bitcoin. I sold it. Uh, I actually 05:01 didn't sell it. I converted it to 05:02 Bitcoin, which you could do on these 05:04 platforms. You just say, "I want to 05:06 basically convert Ethereum to Bitcoin." 05:09 And if you own anything in the crypto 05:10 ecosystem other than a Bitcoin, I would 05:12 recommend that you do exactly the same 05:14 thing. just go in there and say, "Hey, I 05:16 want to convert whatever it is, 05:17 Ethereum, Cardano, Salana, XRP, which 05:20 XRP is just a straight up scam, and 05:23 convert it all to Bitcoin because 05:24 Bitcoin is the one thing that has, you 05:27 know, that will dwarf in value every 05:29 other conceivable thing. And I think 05:31 everything else ultimately will be out 05:33 competed in the long term." So the uh 05:36 takeaway from all of that is in the 05:38 world of crypto there are there is 05:40 digital money, digital gold, the new 05:43 financial system of the world which is 05:44 Bitcoin and there's effectively zero 05:46 competition for that right now. So 05:49 there's that and then there's smart 05:50 contract platforms like Salana and 05:53 Cardano and uh platforms like that 05:55 Ethereum uh and those are used uh are 05:58 valuable only because of their utility 06:01 not because their store of value 06:03 properties or monetary properties 06:05 because they don't have any at least not 06:07 good ones. Uh so uh ultimately 06:10 blockchain technology is really only 06:13 really good at one thing which is uh a 06:16 digital scarcity which is valuable for 06:19 money. Which is why the big breakthrough 06:21 of all of it was Bitcoin digital 06:24 scarcity and the ability to build an 06:26 entirely new financial system from 06:28 scratch that is built on nobody being in 06:31 charge with everybody having veto power 06:34 over the network to keep anyone from 06:36 making changes. which is why there will 06:37 only ever be 21 million Bitcoin and why 06:41 you can safely store value in Bitcoin in 06:44 a way you cannot in Ethereum. Obviously, 06:46 if you had tried to store value in 06:48 Ethereum, you would be down more than 06:50 50% in US dollar terms and down much 06:54 more than that in Bitcoin terms because 06:57 while Ethereum has lost 50% of its value 07:00 uh in the last four years, Bitcoin has 07:03 gone up significantly in value. 07:05 Therefore, the difference between 07:06 Bitcoin and Ethereum is even larger than 07:10 the 50% drop in Ethereum because it's 07:13 the 50% drop in Ethereum on top of the 07:17 uh the outperformance of Bitcoin being 07:20 significantly higher in value than it 07:22 was 4 years ago. So, uh I would not 07:25 store value. Do not use a smart contract 07:27 platform as an investment. If you want 07:29 to do exotic financial transactions, 07:31 which I'm guessing practically zero of 07:33 the people listening to this video or 07:35 watching this video are interested in 07:37 doing exotic financial transactions on a 07:40 smart contract platform. So unless 07:42 you're actually using it for its 07:44 intended purpose, which is to to do 07:46 exotic financial transactions, then most 07:49 of what people use crypto for is as an 07:52 investment, as a store of value. And for 07:54 that purpose, it's bit basically Bitcoin 07:56 stands alone as purpose-built for that 07:59 purpose and actually good at that job. 08:02 Everything else in the world of crypto 08:03 will either be outco competed by another 08:06 utility platform or smart contract 08:08 platform or in the case of XRP, it's a 08:10 tra straight up scam that will 08:12 eventually go to zero. And uh anyway, 08:15 when all the dust settles, there will 08:17 only be one thing left. Uh and that will 08:19 be Bitcoin and then some, you know, tiny 08:22 smart contract platform that that almost 08:24 nobody uses. So if you want an 08:26 investment and you want to store wealth, 08:28 there is one good place to do it and 08:30 that is Bitcoin. So I learned that in 08:33 2021. Glad I did because otherwise I'd 08:35 be way down as compared to where I am. 08:38 Uh and so I'm so thankful I converted 08:40 that Ethereum to Bitcoin in 2021. And 08:42 for anyone holding on to anything that 08:44 is not Bitcoin in the world of crypto, I 08:46 would recommend you do the same. Convert 08:47 it all to Bitcoin. BTC, the real thing. 08:50 Have a great night everyone. Thanks.