The past Tuesday, Ethereum ETFs were launched. For two consecutive trading days, the trading volume exceeded one billion, and market participants were blissful. Among all the marketing materials about Ethereum out there, my favorite has to be the introduction video released when it was officially launched. Shortly into the video it says: “Ethereum is a planetary scale computer powered by blockchain technology.” What a grand vision. Just thinking about it is exhilarating.
To sum up this bull market in one word: reckless. Memes dominate the scene, with short-term price actions being the only topic, and there is little technological innovation. I can’t help but miss the flourishing innovation of the last bull market.
Bitcoin vs. Ethereum
Bitcoin is hailed as “digital gold,” primarily valued for its decentralization, scarcity, and security, and is more often seen as a store of value. Ethereum, on the other hand, aims to become the “world computer.” Ethereum not only provides a cryptocurrency, but its more significant innovation lies in smart contracts, which enable the development and operation of decentralized applications (dApps). This gives Ethereum far greater functionality and application scope than Bitcoin. Bitcoin is the pioneer of digital currency, while Ethereum is building a new decentralized internet.
Tech Enthusiasts vs. Speculators (Computer Crypto vs. Casino Crypto)
Chris Dixon from a16z published a blog earlier this year titled: The Two Cultures of Blockchain: Computer and Casino. As the cryptocurrency market continues to develop, participants have split into two major camps: tech enthusiasts and speculators. The tech enthusiasts focus on the innovation and application of blockchain technology, dedicated to developing new technologies and application scenarios to advance the entire ecosystem. The speculators, however, primarily focus on short-term price fluctuations, seeking profits through hype and short-term trading. Ethereum’s original intention was to be a decentralized platform that fosters technological innovation and application development, but in the current market environment, speculative behavior is rampant, and the voices of gamblers have drowned out those of the tech builders.
The listing of Ethereum’s ETF is undoubtedly an important milestone, but to truly realize the vision of the “world’s computer,” it is necessary to return to the original intention and continue to work on technological innovation and application development. In my blockchain education, the builders of the Ethereum ecosystem have been invaluable. I sincerely wish Vitalik and the Ethereum team will continue on the journey and be successful with their vision.