Sep 05, · BTC and ETH stand out as the only decentralized commodity monies. Only these have the liquidity, decentralization, and banking layers to give them a plausible path to status as reserve money for crypto ute-strohner.de: Ryan Sean Adams. Oct 10, · Bitcoin is still the gateway for institutions & that won’t change soon but Ethereum appears to be becoming the gateway for the people. Growth in the number of addresses w/ more than 1 ETH in the next year will tell us if this is a blip or a long-term trend. — Nick Tomaino (@NTmoney) October 8, 1confirmation and Tomaino believe the same. However, it looks like BTC traders have been more long-term bullish on the price, while ETH traders have been more focus on the short-term price actions. Still, traders and investors should be.
Btc or eth long termEthereum to Possibly Take Over BTC in the Future, ETH Growth 8x than BTC - TCR
A lot to take in. But for now this is enough to understand crypto commodity monies: they are cryptocurrencies that have both utility value and monetary premium.
And the best of these have the highest degrees of moneyness. Note: Some people claim BTC is not a commodity because it has no utility. I disagree. This is utility. If you want exposure to the money potential of cryptoassets, I recommend a crypto money portfolio. The crypto money portfolio is composed of three types of assets:. Money bets —assets with high potential to increase in moneyness—these are the reserve currencies of open finance e. Stablecoin bets —stablecoins tethered to the value of fiat e.
The thesis of the crypto money portfolio is that one or several cryptocurrencies will become the base money of a parallel non-sovereign financial system worth trillions and that this money system will both enable and be enabled by a new class of crypto banks and money protocols.
The crypto money portfolio gets you exposure to the money layer and the banking layer of this parallel money system which are the layers with the highest potential for value accrual. What percentages should you allocate to each of three asset types?
That depends entirely on your circumstances. You first need to determine how much of your current net worth to invest in crypto and how much of your future earnings to invest. After that, you can decide how to allocate across the three crypto asset types.
Specific percentages aside, the crypto money portfolio places the bulk of your crypto exposure in money bets. Bank bets compose a smaller portion of the portfolio, and are only placed when expected to deliver alpha on the money bets. Stablecoin bets are like cash for use in the ecosystem and to hedge the risk of your other bets. Look at the top 15 cryptoassets by marketcap.
Which of these has traction as a commodity money today? Only these have the liquidity, decentralization, and banking layers to give them a plausible path to status as reserve money for crypto finance. BTC is clearly in the process of being financialized primarily through crypto banks and ETH is clearly in the process of being financialized primarily through money protocols.
This may change, I reevaluate this thesis on a quarterly basis. Of course, you may get different answers on the above. You may be willing to hold the more speculative crypto money bets in your portfolio. Allocate accordingly! But realize the bulk of value appreciation in crypto is likely to come from commodity monies and the monetary premiums associated with them.
This makes your money bets your most important bets in crypto. These are your long-termers. The base money from which you operate this program.
Your first stop for going bankless. Keep at it! Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions.
Do your own research. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Click the link we sent to , or click here to log in. Popular Courses. Part Of. Bitcoin Basics. Bitcoin Mining. How to Store Bitcoin. Bitcoin Exchanges. Bitcoin Advantages and Disadvantages.
Bitcoin vs. Other Cryptocurrencies. Bitcoin Value and Price. Cryptocurrency Bitcoin. Key Takeaways Bitcoin signaled the emergence of a radically new form of digital money that operates outside the control of any government or corporation. With time, people began to realize that one of the underlying innovations of bitcoin, the blockchain, could be utilized for other purposes.
Ethereum proposed to utilize blockchain technology not only for maintaining a decentralized payment network but also for storing computer code which can be used to power tamper-proof decentralized financial contracts and applications. Ether was intended to complement rather than compete with bitcoin, but it has nonetheless emerged as a competitor on cryptocurrency exchanges. Article Sources. Investopedia requires writers to use primary sources to support their work.
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