Is Ethereum a Foolish Investment?
Lately, I’ve seen a lot of people calling Ethereum (ETH) an investment for “stupid” people because many altcoins have outperformed it. But does that mean Ethereum is always outpaced by altcoins? Let’s take a look at the numbers and review it more closely.
From September 2022 to March 2023, Ethereum's price stayed around $1,600, then shot up to $2,370, a 150% increase. Is that bad? Well, if we randomly pick some altcoins, like Pendle (up 1000%) or BNB (up 200%), you might think ETH is underperforming. Sure, altcoins can show higher returns at times, but that’s just one part of the picture.
What happens when the market goes down? Here's a key observation: Ethereum tends to perform better than altcoins during downturns. When ETH drops 10%, altcoins can lose 20% or even 30%. So while some altcoins might have outperformed ETH on the way up, they also tend to fall harder on the way down.
You might argue that you can always make profits by picking the right altcoin. But it’s not that simple. The volatility in altcoins means many people get liquidated in the future, maybe you're one of them.
In the end, Ethereum might not always offer the best returns in the short term, but it’s generally less risky and more stable compared to many altcoins, especially during market corrections. So, before calling ETH a "stupid" investment, it’s important to consider the full picture, not just the flashy numbers.