Will Ethereum Break Like Terra Luna?
Get the "Ultimate Guide to Bitcoin" course:
https://www.trader.university/courses/38824-the-ultimate-guide-to-bitcoin
Use the discount code YT99 to get the best price.
In this video, I discuss the fragility of protocols that run on proof of stake, like Ethereum.
The lower Ethereum's price falls, the more people will choose to unstake their coins, which further erodes Ethereum's security and could lead to a death spiral.
By contrast, capital deployed into the Bitcoin mining ecosystem remains there and cannot be withdrawn in the same way. Bitcoin mining machines (ASICs) can stick around for 6 years, and profit margins for ASIC manufacturers get reinvested into producing more powerful and efficient new ASICs thanks to human ingenuity and Moore's Law.
Because these ASICs have only one use (mining Bitcoin), the capital cannot flee the Bitcoin mining ecosystem as easily or as quickly as staked deposits can flee the Ethereum staking ecosystem (once withdrawals are allowed by Ethereum devs).
Regulators need to look into whether proof of stake protocols like Ethereum and Cardano are at risk of catastrophic implosions like Terra Luna.
Institutional investors need to be able to explain to their LPs how and why their investment in ETH won't end as badly as Terra Luna. Do you feel lucky, punks?
Not investment advice! Consult a financial advisor.
Behind Terra’s $60 Billion Implosion:
https://www.bloomberg.com/news/newsletters/2022-05-16/the-big-take-what-caused-terra-luna-s-60-billion-implosion
How much ETH is being staked:
https://www.stakingrewards.com/
Ethereum Devs Plan to Enable Staked ETH Withdrawals by March 2023:
https://decrypt.co/116763/ethereum-devs-staked-eth-withdrawals-shanghai-march-2023
Bitcoin network hash rate:
https://www.blockchain.com/explorer/charts/hash-rate
Exxon Mobil Powering Bitcoin Mining Pilot Using Excess Natural Gas:
https://blockworks.co/news/exxon-mobil-powering-bitcoin-mining-pilot-using-excess-natural-gas-report
I am not being paid or otherwise compensated by any company or cryptocurrency project that I mention in my videos.
My opinion is not for sale. Please do not contact me with any affiliate or advertising deals.
#ethereum
#terraluna
#bitcoin
Disclaimer
Neither Trader University, nor any of its directors, officers, shareholders, personnel, representatives, agents, or independent contractors (collectively, the “Operator Parties”) are licensed financial advisors, registered investment advisors, or registered broker-dealers. None of the Operator Parties are providing investment, financial, legal, or tax advice, and nothing in this video or at www.Trader.University (henceforth, “the Site”) should be construed as such by you. This video and the Site should be used as educational tools only and are not replacements for professional investment advice. There is a high risk in trading.
-
9:40
Bitcoin University
6 months agoAmazing News For Bitcoin Mining (Ocean)
1.07K12 -
1:17:22
Andy Frisella
23 hours agoDid He Just Threaten Us? - Ep 726 CTI
19.3K46 -
28:44
TudorDixon
22 hours agoThe Key to Limitless Health with Casey Means | The Tudor Dixon Podcast
30.1K17 -
1:06:35
theDaily302
23 hours agoPatriots With Grit Show-Daniel McGirr
24.6K9 -
49:31
DanielDavisDeepDive
18 hours agoBREAKING NEWS: Putin Offers Peace Proposal to Ukraine
35.7K68 -
43:56
Censored TV
15 hours agoS6E02 - BYE! BYE! ROMAN EMPIRE (FREE PART)
35.5K36 -
0:29
LimitlessAmbition
2 days ago $0.06 earnedFerruccio Lamborghini Drops Life Advice for Aspiring Entrepreneurs
18.3K9 -
1:54:17
Kim Iversen
17 hours agoFired from 'Rising'! Briahna Joy Gray Gives Behind-the-Scenes Revelations and Opens Up About Her Departure
69.2K212 -
2:37:09
Roseanne Barr
15 hours agoIs Trump running a clandestine military operation? | The Roseanne Barr Podcast #52
126K609 -
23:16
Alexis Wilkins
18 hours agoBETWEEN THE HEADLINES WITH ALEXIS WILKINS: UKRAINE HIT LIST, HOUTHIS, AG GARLAND, HUNTER BIDEN TRIAL
46K18