Priya Patel
TLDR:
- Ethereum serves different use cases from Bitcoin and has larger network effects
- Investors can benefit from diversifying their portfolio with Ethereum
In an interview with Michael Nadeau, founder of the DeFi Report, he discusses the importance of looking beyond Bitcoin and focusing on Ethereum as a promising investment option. While Bitcoin serves as “internet money” or “digital gold,” Ethereum is a Turing-complete computing platform that allows for endless innovation. Nadeau highlights that Ethereum has seen significant growth in industries building on top of its platform, with over 7,300 applications currently active. Additionally, Ethereum offers real yield for holders of ETH, generated from user fees and consensus rewards.
Nadeau explains that an allocation to ETH in a portfolio can boost returns and provide additional yield not possible with Bitcoin. He also shares five interesting Ethereum data points, including the network’s profitability in 2023 and the growth in non-zero wallet addresses. The Ethereum Investment Framework, created by Nadeau, helps investors apply traditional valuation frameworks and fundamental analysis to crypto networks, offering insights on addressable market analysis, cycle analysis, and GDP analysis.
The framework covers important concepts such as the history of open-source technology, the deployment of new technologies, and the similarities between the Internet’s development and public blockchain networks like Ethereum. Nadeau created The Ethereum Investment Framework to address the complexity of crypto investments and provide investors with a comprehensive resource to make informed decisions.
