Shifting Markets - The Daily Gwei #528
I try not to comment or focus on the crypto markets too often since I believe that all short to medium term movements are purely noise and I’m a (very) long-term investor. Though I’ve had a few people ask me lately if the current market structure is anything like previous ones I’ve experienced and the answer is quite nuanced. It definitely does feel like the “crab market” that I experienced in 2019 but at the same time everyone is much more optimistic about crypto compared to back then (and there are many more proven use-cases).
The most interesting thing for me over the last few years has been watching how the market has changed its treatment of BTC and ETH. Back in 2019, no one except the most die-hard Ethereans thought that ETH was money or that ETH could be a store of value asset - and you’d be laughed at for even comparing ETH to BTC. Fast forward to today and ETH is accepted as the only other “blue chip” asset in crypto alongside BTC. I would go even further and argue that ETH is a much more investable asset than BTC (especially post-merge) and I think more people are recognizing this as the bear market continues and ETHs performance against BTC holds strong.
I don’t want to rag on BTC too much, but right now I can’t really see what narratives it has left. It has failed as an inflation hedge, it has failed as a payments system (the Lightning Network is a joke), the Bitcoin network has a weak long-term security policy, headwinds related to PoW are only going to get worse and the community is made up of people with an extreme case of Dunning-Kruger. Obviously I’m biased in my opinion of BTC but I don’t think anything I’ve said is false - BTC really has fallen very far from what it originally aspired to be. In saying all of this, I can still see BTC going back to its all time high against USD and beyond, but
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