Ethereum and Bitcoin are different, of course. But many of the key drivers of bull cases for them are the same, so we capture them here in this list.
Some key themes in the bull case for both Bitcoin and Ethereum:
Limited supply. Bitcoin supply limits hard coded in. Ethereum supply also constrained but not limited like Bitcoin, yet. Will be limited if new proposal is implemented (and looks like it will be (EIP-1559 is a proposal that will see Ethereum gas fees get burned, reducing the supply of ETH.)
Supply also limited by coins being locked up. For Bitcoin, 78% of all Bitcoin is not for sale. It is being grabbed by institutions and high net worth individuals. Ethereum is not in as much demand as bitcoin, yet, but demand is coming. Think of Bitcoin as the new Gold. Think of Ethereum as the new Oil. It is needed to do things in the distributed computing infrastructure of applications on the Ethereum Network.
There are 46.8 million millionaires in the world. There are only 21 million #Bitcoin — less than half will ever be able to own 1 bitcoin.
But just a few high net worth individuals and institutions are buying. As more discover Bitcoin and Ethereum it will cause more demand on the limited supply. Grayscale now owns 3% of all Bitcoin.
Banks are slowly waking up to power of Bitcoin and Ethereum. Some still badmouth it, it competes. Others realize it is the future. US Treasury OCC, the largest US banking regulator, just issued new guidance allowing US banks to use public blockchains and dollar stablecoins as a settlement infrastructure in the US financial system. Very positive sign for Ethereum.
Globally people are losing faith in governments and the way government’s manage money supply. Savvy people see out of control spending as inflationary. Joe Biden’s new stimulus package has been described as “another multitrillion-dollar advertisement for Bitcoin.”
The majority of people have, and will continue to underestimate Bitcoin and Ethereum’s impact on the world. Therein lies the opportunity.
Ethereum related projects are attracting developers. Up to 1,000,000 developers are involved in building applications on top of the platform.