"Store of Value" Game
Let me propose a little game of fiction...
Let's say it's the year 2030, the crypto society has experienced a few bullish and bearish cycles and in each of them thousands of projects and tokens have emerged and disappeared.
Even more, let's say that the only blockchains that the crypto society has reached establish as supreme and unique are BITCOIN and ETHEREUM (although I hope that HIVE is obviously too) and that all the others have proven to be mere and crude copies of these two...
Now, let's say that you have $1,000,000 to invest in only one of the two blockchains, only one of them, it's not allow dividing 50% or in any other proportion...
Ah, I forgot to say, BITCOIN fundamentals will be the same as today's, with a few more implemented upgrades,if yoy want, but without major hardforks.
ETHEREUM will have finally managed to transition from the Proof of Work algorithm to the Proof of Stake with what its High Gas Fees problem seems to be almost solved...finally. The rest of the parameters will be the same...
In BITCOIN there will only be 21 Million tokens, the emission will continue to be according to the Halving event every 4 years approximately... in ETHEREUM, the MAXIMUM SUPPLY is infinite, as today, the control of Inflation will also be subject to the EIP (Ethereum Improvement Proposal)-1559 that burns part of the transaction fees but the supply keeps steadily increasing year after year.
I ask again, if you had to invest your money in one of the two, in which would you do it?
My option in this case would be clear... and it is not that I believe that scarcity is what makes BITCOIN different, but it seems to me a more important parameter than not knowing the Maximum Supply at all and being at the expense of what let others decide...
(Source)
What would be your choice?
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https://twitter.com/thecryptorunner/status/1495721261288280065
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I think its about about usablity. Bitcoin is good, but its V1, Just like ETH is good, but that is V2... in 9 years.. hmmm. I dont think ether of them will be here, at lest in the same way they are today.. but perhaps ETH I think. !
Ethereum will be my choice. Let's assume it just that two. Because the big guys can still try find their way to try manipulate BTC in their own way. So the much population on Bitcoin is a turn off for me.
Interesting question. I far prefer Bitcoin to ETH - it's no contest - but given those parameters, I would choose ETH in this scenario.
It's true that the supply of ETH is theoretically not hard capped, but in practise it's pretty limited, and definitely not infinite! An infinite supply would - by definition - mean that the value of ETH would drop to zero. Such a scenario is obviously the opposite of what ETH holders want, and equally obviously the opposite of what the PoS coin holders will vote for when it comes to governance decisions.
The reality is that ETH outperforms BTC by a substantial margin in the real world. If we are to look at them eight years from now, then perhaps we should look at the previous eight year to see what we might expect. Over the past eight years, ETH has gained 10x its value vs BTC. While in theory, its supply is less limited, in practical terms it is the more deflationary of the two.
Like most investing, it comes down to the investing style of the individual - particularly in terms of risk and reward. But is BTC and ETH are still around in 2030 - and nothing else is, then I assume they will both continue to survive together. In that case I would prefer to invest in the asset which has a far greater ROI history, bearing in mind that by then Ethereum would have been around a lot longer than what BTC has been around today.
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Yep, just remember that Taproot will put the basis for allowing smart contracts like on ETH but on BTC as well.
Let's revisit this post in 2030 and check where the price of Bitcoin and ETH are, our minds could be blown! $1,000,000 may not go that far in purchasing power!!
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hahahha, I hear you man!
It's hard to say! It's like compare who's the best between Real Madrid and Barcelona haha.
But I would invest that money in bitcoin as well, the utility and growth it will have in those years is incomparable, ETH always going to be 2nd place
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Great, you are the first one selecting BTC as me.
After more than 6 years in crypto, BTC is my choice also.