Huge ETH Rally, Quick Rebalancing

Since my last commentary about 5 weeks ago, ethereum (ETH) has rallied 240% (from $12.45 to $42.40). This rally was on the back of "enterprise ethereum", an announcement by some of the world's largest tech, financial, and even oil companies, that they will be jointly developing the ethereum platform. While I remain very bullish on ethereum, it is now an oversized portion of our cryptocurrency
portfolio. I suggest rebalancing to bring eth back down to 50% of your cryptocurrency portfolio and reinvesting the profits in bitcoin (BTC).

There are a few upcoming ICOs (initial coin offerings, similar to equity IPOs) that I think are extremely promising and in which I am
planning to invest heavily. They are operationally demanding to invest in. Let me know if you're interested in participating.

This last paragraph is some "inside baseball."  First, the SEC rejected the Winklevoss twins bitcoin ETF proposal, and their reasoning suggests they'll reject similar proposals in the near future; this was expected but was still disappointing. Second, the bitcoin community has faced serious infighting for 2 years over how to "scale" the network - allow it to handle more transactions per second. This infighting took on increasing political importance and personal animosity, culminating recently in one faction, "bitcoin unlimited", having the majority of their nodes taken down by a "zero day" attack. While this infighting slows bitcoin's technological progress, it renders it extremely stable as "digital gold." As a former political science major, allow me this analogy: ethereum is like the French government immediately after the French Revolution: the community has total faith in its leadership to implement fast and radical change. Bitcoin is like the American government post American Revolution: its community emphasizes checks and balances and a constrained pace of change for the sake of stability and security. Ethereum is perfectly suited for its role as a rapidly evolving technological platform, while bitcoin is well suited for its role as a technologically stable store of value. The SEC decision and political infighting have kept a lid on bitcoin prices recently, but I expect that to be short-lived.

Disclosure: None. 

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RC 5 years ago Member's comment

Disregard the previous message.


RC 5 years ago Member's comment

Hi Ari

My main concern about #bitcoin is the fork that is brewing, how do you see it ending, could be a big obstacle for the future of bitcoin? $BITCOMP