Ethereum, The SEC, and Hopium

By davidgyoung | Alternative Investing | 28 Mar 2024

The below link is an article from Fortune (mainstream "experts" in finance and economics) discussing the SEC probing companies about Ethereum specifically:

SEC Probes Crypto Companies on Ethereum

First, some recent relevant posts on this platform:

BOJ Tries To Drop YCC and Bitcoin

Building On Bitcoin is Picking Up And So Is The Lightning Network

We have never liked Ethereum.  This is not a victory lap.  We have consistently put out comments or content that aligned with this view.  We even proposed an alternative should there be a legitimate and credible need for an inflationary cryptographic asset with "staking".   In fact - the alternative proposed can already do everything Ether promises to do much cheaper and much easier (though it may face similar problems with the SEC).  It's astonishing to us that Ethereum has always been anointed as some sort of grand winner in the search for "the world's supercomputer" or whatever.  We don't see this fight being even close to over.

Coinbase recently received a setback as well in its case against the SEC.  Essentially, the court is NOT tossing the major conceptual conflict over whether Ether is a security or not and how that impacts firms like Coinbase. 

As a brief recap, here is what troubles us regarding Ethereum:

- we don't like the premine

- we don't trust the intentions or ethics of the premine recipients and other "bagholders" along the way

- we don't trust how the incentives are aligned for the big guy and against the little guy

- we don't like how Emperor Buterin rules over the entire project.  It is not decentralized if it has a King. 

- we don't like how Wall St and Silicon Valley have already co-opted it

- we don't like how it was Proof of Work (be honest, did you even know Ether tried to be POW for years????) and switched to Proof of Stake.  If it was meant for POW and was so awesome and amazing, then why did it switch?

- we are not confident it could ever scale credibly and in a manner even remotely close to a decentralized manner

- we, as investors specifically here, hate how other "blockchains" can so easily suck value off of the Ether chain and leave the Ether L1 chain standing hapless

There's a few reasons.

Now what?

It doesn't appear that Ethereum will have smooth sailing to an ETF and may even encounter larger problems.  We are fully aware that the asset ETH, readily available on exchanges now, can freely trade and may even skyrocket if the overall market does well.  It's available and liquid. 

How much sense does it make to bet the farm on Ethereum and build on Ethereum?



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davidgyoung Verified Member

BTC since 2013. Investor. Entrepreneur. Always looking to learn and develop.

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