I've Taken Advantage of This Drop To Buy A Lot of Ethereum. Here's Why.

The investment opportunity of the decade is coming to an end

Buying ETH

“Ethereum is worthless. In the long term it’s going to go to 0.”

This is a big misconception that we hear daily. We have even had people write to us telling us to be careful with our claims because ETH was a very dangerous asset.

For all those who are Ethereum naysayers, it is because they have not done enough to understand it as we are looking at one of the biggest investment opportunities of the decade. Yes, I haven’t lost my mind of the decade.

Like the internet was in 1990 or email in 2000, we face a paradigm shift in our money. Decentralized money in the network. Today, the word decentralized is scary after seeing what has happened with Luna, but we are talking about real decentralization.

Today when you want to make a transaction from the US to France, for example, the process is as follows:

  1. You go to your Bank of America website and ask to make a transfer to an IBAN in another country. They ask you to fill in the address, concept, BIC, name of the beneficiary, etc.
  2. Your bank verifies that you have sufficient funds.
  3. Start the contact with BNP, the beneficiary’s bank. This process can take 2-3 days if there are no weekends or holidays involved.
  4. The beneficiary receives his money.

Where is your money during this time? Nobody knows. Are you really transferring the dollars you deposited one day? No.

However, when we talk about blockchain, it is very different. In just a few minutes, you can move your money with a couple of clicks. This is a very clear advance over traditional finance. It is really like when you used to send a letter. You had to pay for the envelope, the stamp, and the letter carrier.

60 days left

The Ethereum PoW to PoS change could take place, or at least an initial version in June of this year. This would mean that the number of Ethers that can be mined daily will drop by 90%. This poses a scarcity problem that, as with Bitcoin, will cause the price of Ethereum to skyrocket.

Let’s see what has happened historically with Bitcoin halving.

Halving BTC

As you can see, right after each halving, there is a rally. Note that the scale is logarithmic, and the rally is x10.

Halving BTC 2

Undoubtedly this could send the price of ETH skyrocketing. Many conclude that this target price could be $10k by the end of the year, but predictions are usually meant to be wrong.

We should be clear that once this Merge occurs, it will reduce the ETH mined, and it will also cost less to use ETH, leading to more income for the miners. Of course, it will tend to go up in the long run. When you look back on this type of asset, you think, “how could I not have invested a lot more money.” Maybe now it’s the same.

Ethereum Volatility

There is a basic rule in investing, and that is that if you want a return, you have to expose yourself to volatility. One is impossible without the other. Obviously, this may scare many people, seeing your money drop 50% during a downturn is not pleasant for anyone.

In fact, even if ETH has fallen more than 50% from its highs, if it were to fall as it has historically fallen 80%, we would be talking about losing 50% of the invested capital even if we had not bought at the highs. Therefore, many people prefer to DCA the coins.

We use a simple strategy, which we explained to our subscribers.

Staking Rewards

I know it’s all very nice, almost as nice as UST’s 20% APY. But Ethereum also allows Staking. Currently with Lido, you can get around 4% per year. The rewards are returned to you daily and therefore keep compounding.

Once you move from PoW to PoS, this value will increase, and thus people’s interest in getting this return could drive up the price of ETH.

Risks

Like any investment, there are risks. The main risk I see is the one inherent to any technology project, and that is deployment. This means that there could be failures once the changes are exposed to the real world.

For this, first, we will test in parallel branches, and once it is proven that it works there, we will move to Production.

Conclusion

If we add up all the advantages, Ethereum has, its potential target value, and how close it is to triple halving, we are looking at a unique buying opportunity in the history of humankind.

The commodity that mankind has always fought over has been money, from the Romans to Trump and China. We are about to unify this money under the same pattern, just as it happened with the internet. A pattern that:

  • Has cashflows
  • Makes a profit
  • Deflationary

The adoption rate of cryptocurrencies is 4.5% of the world’s population. This gives us the ability to know that the remaining 95.5% will pay more per Ether.

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Best regards

Godfather Investor
 

 

This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any significant financial decisions.