My X feed is filled with bottom callers and ATH 2027 callers. Most are very bullish, particularly for ETH as I have said all along.
Down here we have bearish euphoria on property. I can tell you it's sickening and bloody obvious when you are nearing the bottom. crypto isn't even remotely close to being bearish.
Most retail investors are bearish on crypto right now. Almost all influencers are bearish. Ben Cowen is calling for a $500 ETH. Many people expect BTC to drop to $20-50k. All alts have been written off as worthless. Meanwhile Tron TRX absolutely ripped BTC a new one the past 9 years.
The current ETH price is garbage and I am really pissed off and disappointed at other ETH investors who dumped it down to these pathetic levels.
1 BTC is currently trading for about 31 ETH, but there's only a little over 6 ETH for every 1 BTC.
ETH's current inflation is 0.86% and a little higher than BTC's 0.83%. That's because more ETH is staked now after Tom Lee added Bitmine's holdings. About 42.25 million ETH is staked. This increases issuance which inflates the ETH supply. BTC has the opposite problem. BTC's inflation halves every 4 years, but the inflation is what pays miners to secure the network.
https://beaconcha.in/charts/staked_etherThe gamble is that the BTC price will more than double to offset the 50% reduction in inflation every 4 years along with the dollar's devaluation in the same time period. What matters to miners is the purchasing power of a BTC block reward. The dollar's purchasing power declines more than people realize. The official numbers are bogus. Real purchasing power declines by about 11% per year. So if the price of BTC doubles every 4 years, the miners are getting paid the same amount as before in dollars, only those dollars now buy a lot less than they did 4 years prior.
The hope is that transaction fees will make up the difference. But since BTC launched 17 years ago transaction fees still account for less than 1% of miner revenue. So BTC could be cooked once its inflation goes to 0.2 or 0.1%.
Critics of ETH claim it has an infinite supply. Well, the inflation is still manageable at 0.86%. On the higher side than most of us want. The problem is there has to be inflation to reward stakers via a yield. One can't exist without the other. At the same time, the transaction fees have to be super cheap since Solana and other chains started competing with ETH. ETH's inflation was negative prior to the Dencun upgrade that started lowering ETH fees. The hope on the Ethereum side is that the transaction volume will scale immensely to increase the amount of ETH being burned. That would help bring down ETH's inflation.
There's also a proposal to reduce the yield to ETH stakers. Some people argue that Ethereum is overpaying for security. They want to lower ETH's inflation to about 0.4%, to compete with BTC's +/- 0.415% inflation after 2028. Fiat inflation is about 8% per year, or 10x the current inflation of BTC or ETH.
So ETH's infinite supply is overblown.
The dollar is secured by the US government and military. BTC is secured by miners. ETH is secured by stakers. The dollar has been able to get away with massive inflation and devaluation because of its reserve status and the backing / enforcing by the US military. We'll see how that turns out long-term.
