This crypto is like the greatest tech stock the world has ever\u00a0known.<\/p>\n
I believe it\u2019s set to outperform the vast majority of other cryptos over the next few\u00a0years.<\/p>\n
And today, I\u2019ll share three reasons why\u200a\u2014\u200aand how to get\u00a0started.<\/p>\n
No, it\u2019s not bitcoin (BTC), although my research shows bitcoin should continue to rise and potentially hit $250K this\u00a0cycle<\/a>.<\/p>\n Bitcoin was the first use of blockchain technology. Think of blockchain like a database. It\u2019s a tool for recording and verifying transactions and asset ownership.<\/p>\n Using blockchain technology, bitcoin allowed anyone to send and receive money on the internet without banks or any other financial middlemen\u200a\u2014\u200afor the first time\u00a0ever.<\/p>\n Despite this, hardly anyone uses bitcoin to actually buy<\/em> things today. Few Americans use bitcoin to transfer money, either. It hasn\u2019t even dented Western Union\u2019s money-transfer business.<\/p>\n Instead, bitcoin\u2019s blockchain is like a database. That database can be used for many things. But it\u2019s used for one thing and one thing only: keeping track of who owns\u00a0bitcoin.<\/p>\n I\u2019m talking about Ethereum (ETH)<\/strong>. As you\u2019ll see, bitcoin and Ethereum don\u2019t even belong in the same sentence.<\/p>\n Think of how the App Store works on your iPhone. You can download millions of apps for just about everything. The only limit to what \u201capps\u201d developers can build on Ethereum is their imaginations.<\/p>\n Today, there are over 3,000 apps running on Ethereum\u2019s blockchain\u200a\u2014\u200aand it\u2019s the home to many of the world\u2019s top DeFi projects.<\/p>\n In other words, there\u2019s one use case for bitcoin. But with Ethereum, the sky\u2019s the\u00a0limit.<\/p>\n Bitcoin was revolutionary when it first came out. But it\u2019s a finished product. All it will ever be is digital cash\u200a\u2014\u200aor, as some folks call it, \u201cdigital\u00a0gold.\u201d<\/p>\n They call it this because bitcoin is a store of value the government can\u2019t dilute, like\u00a0gold.<\/p>\n Whatever you want to call it, the fact remains there\u2019s almost nothing new being built on bitcoin\u2019s blockchain. Besides acting as a store of value, bitcoin isn\u2019t used for much. Like gold, it \u201cjust sits\u00a0there.\u201d<\/p>\n Ethereum, on the other hand, is a fountain of innovation.<\/p>\n It\u2019s the \u201cbase layer\u201d on top of which programmers are building world-changing disruptive businesses. Even better\u2026 it\u2019s making real money from all the activity happening on its blockchain. Roughly $32 billion worth of value settles on Ethereum every\u00a0day.<\/p>\n I don\u2019t know about you, but I\u2019d much rather own a fast-growing tech business than \u201cdigital\u00a0gold.\u201d<\/p>\n Don\u2019t get me wrong. There\u2019s a place in the world for bitcoin. It\u2019s scarce, secure, and I think it will continue to rise in\u00a0price.<\/p>\n But Ethereum is hands down the winner\u00a0here.<\/p>\n It\u2019s probably no surprise that Ethereum is my favorite crypto holding for the long haul. And full disclosure: It\u2019s also my largest personal\u00a0holding.<\/p>\n If you\u2019re serious about investing in crypto, I recommend buying at least a little ETH and treating it like you would a long-term stock position.<\/p>\n Buy some, forget about it, then continue on with your\u00a0life.<\/p>\n For the more skeptical folks out there, here are three big reasons I expect Ethereum to outperform the vast majority of cryptos over the next few\u00a0years:<\/p>\n In 2022, the crypto market went through a major culling when fraudulent crypto exchange FTX collapsed and high-profile stablecoins (like USD and LUNA, the crypto it was tied to) crashed in\u00a0value.<\/p>\n This led to a wave of selloffs and a loss in investor confidence. Many turned their backs on crypto, never to\u00a0return.<\/p>\n But those who stuck around are likely to put money to work in dominant cryptos with solid fundamentals, like Ethereum. In fact, in conversations I\u2019ve had with crypto fund managers, ETH is the top choice for allocators putting chips back on the\u00a0table.<\/p>\n A similar trend played out in past crypto downturns. Bitcoin as a percentage of crypto\u2019s total market value doubled during the last bear market. And I believe ETH will replace BTC as the go-to crypto asset moving\u00a0forward.<\/p>\n Tokenomics is one of the most\u200a\u2014\u200aif not the<\/em> most\u200a\u2014\u200aimportant drivers of crypto prices. Tokenomics sets the rules for how a crypto token operates.<\/p>\n Ethereum switched to \u201cstaking\u201d in September 2022 and now boasts some of the best tokenomics of any crypto. Since the big switch, the effects on its supply schedule have been astounding. There have been fewer sellers and more\u00a0buyers.<\/p>\n Today, you can earn around a 3%\u20134% yield staking your ETH through Lido (a decentralized staking network). That\u2019s a big incentive for crypto investors. What\u2019s not to like about getting paid to hold\u00a0ETH?<\/p>\n Ethereum\u2019s \u201cburn\u201d mechanism is comparable to companies buying back their own stock. It reduces the supply of ETH\u00a0\u2026 and should result in higher ETH\u00a0prices.<\/p>\n Crypto achieved a major milestone when bitcoin ETFs got the green light to start trading at the beginning of\u00a02024.<\/p>\n Just two months after their launch, $60 billion worth of investor money poured into these\u00a0funds:<\/p>\n Source: @CharlieBilello on\u00a0X<\/em><\/p>\n For context, the SPDR Gold Shares ETF (GLD) was formerly the fastest ETF to accumulate $10 billion in assets\u2026 but it took three years to do\u00a0it.<\/p>\n BlackRock\u2019s (BLK) iShares Bitcoin Trust ETF (IBIT) achieved this milestone in just seven\u00a0weeks.<\/p>\n The world\u2019s largest asset managers\u200a\u2014\u200aincluding BlackRock, Fidelity, VanEck, and others\u200a\u2014\u200aare now telling their clients to buy and hold BTC and ETH in their\u00a0401(k)s.<\/p>\n More important, Ethereum is only about one-fourth the size of bitcoin. That means it takes less money to move its\u00a0price.<\/p>\n Even if Ethereum attracts 20% of the inflows bitcoin got, logic says that when billions of dollars start flowing into ETH, its price will\u00a0rise.<\/p>\n For these reasons, I recommend heavily skewing your crypto portfolio toward\u00a0ETH.<\/p>\n Bottom line: If I I only had to buy one crypto, it would be Ethereum.<\/strong><\/p>\n For more insights, <\/strong>subscribe to my investing letter The\u00a0Jolt\u26a1<\/em><\/strong><\/a>.<\/em><\/strong><\/p>\n I publish fresh research on stocks and crypto every Monday and\u00a0Friday.<\/p>\n Click here to subscribe<\/a>.<\/p>\n \u2014 Stephen McBride, Chief Analyst at <\/em>RiskHedge<\/em><\/a><\/p>\n If I only had to buy one crypto, this would be it\u2026<\/a> was originally published in Coinmonks<\/a> on Medium, where people are continuing the conversation by highlighting and responding to this story.<\/p>","protected":false},"excerpt":{"rendered":" This crypto is like the greatest tech stock the world has ever\u00a0known. I believe it\u2019s set to outperform the vast majority of other cryptos over the next few\u00a0years. And today, I\u2019ll share three reasons why\u200a\u2014\u200aand how to get\u00a0started. No, it\u2019s not bitcoin (BTC), although my research shows bitcoin should continue to rise and potentially hit […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-32041","post","type-post","status-publish","format-standard","hentry","category-interesting"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/32041"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=32041"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/32041\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=32041"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=32041"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=32041"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}My favorite large crypto, on the other hand, is a completely different beast. It\u2019s a platform where anyone can create and launch\u00a0\u201capps.\u201d<\/strong><\/h3>\n
Ethereum is a real business making real\u00a0revenue\u2026<\/strong><\/h3>\n
If you\u2019re serious about investing in crypto\u2026 you need to buy\u00a0ETH.<\/strong><\/h3>\n
#1: ETH is considered a flight to\u00a0safety<\/strong><\/h4>\n
#2: Fewer sellers, more\u00a0buyers<\/strong><\/h4>\n
#3 The ETFs have\u00a0arrived<\/strong><\/h4>\n