Going “ALL IN” w/ Ethereum!? $1k per ETH is TRENDING!! Final Chance to Accumulate!!

Ethereum, it’s getting the BIG looks from
here, there…basically everywhere as the protocol transitions into a new horizon with
a parallel blockchain architecture. So are you ready to dive into my parallel
universe to break it all down? Well you don’t have a choice, cuz it's time
for Chico Crypto! Ethereum parallel chains? Well one a proof of stake beacon chain & the
other is the main for now proof of work chain. And that means Ether, the asset used to secure
both of those chains, is getting double the looks on all sides too. Retail, Institutional, and even genius developers
outside of crypto. So Retail? Just look at google trends charts compared
with bitcoin…First bitcoin…during this recent 20k test, BTC got to just 19 percent
of it’s search hype during the last peak December 2017….Ethereum on the other hand,
got to 30 percent that level that same week. Ethereum hype is getting hotter faster with
people around the globe… How about institutional? Well Raoul Pal, legendary hedge fund investor
tweeted this…My hunch is BTC is a perfect collateral layer but ETH might be bigger in
market cap terms in 10 years for the reasons above.

Money and collateral is just the base layer. Everything builds on top. The store of value is collateral, the trust
layer and exchange of value is bigger…. Some pretty big words, but if you look deep
enough, it’s a common theme…so deep lets Go. Ethereum, is known & has been worked on by
some pretty legendary developers….George Hotz? Who is he and what happened? Well he is a coding prodigy, 2007 first person
to remove SIMLOCK, and jailbreaking the iphone and then in 2009 doing the same to the ps3
online network….

And now..he is competing with none other than
Elon Musk, in AI and self driving tech with the company comma.ai…..and actually in 2016,
Hotz and Musk met together, with Hotz reporting Musk offered him a pretty lucrative job heading
the development task of automated driving at Tesla. Well George, he actually helped the Optimism
team with their OVM compiler…and not even that long ago, back in July….as seen from
his Github commits in July…and this might lead to another video about ethereum scaling…but,
obviously he’s bullish if he’s helping with L2. Like I said common theme, and crazy bullish..So
Ether, what are options right now with stacks sitting in wallets? Stake or DeFi? How do you get more and what’s the most
efficient way? Stake or Mine? Well hopefully I can provide some insight
to those questions. Well you go to beaconchain.in, and to the
staking leaderboard….validator incomes, and since the beacon chain began on December
1st and we don’t have data for a year or even a month, so we will just use the most
recent data, 1 day.

Taking the average of the top earning validator
of the past 1 day & the bottom earning .0149 plus .0181 and divided by two..we get an average
of .0165…that multiplied by 365 days in a year, we get just over about 6.02 ethereum…turning
the staked stack to 38.02 ethereum, an 18.8 percent ROI for just setting that ethereum
away to stake. Now, I know, that number will decline as more
stakers come online..that is early numbers, remember I said early birds get the worm? But still, projections are pretty damn good
a year out. Ethereum price.org’s eth 2 calculator, puts
at 1 year if you hold your stake, growth will be about 4.04 ETH, increasing the stack to
36.04, a yearly ROI of 12.63%…

So can DeFi provide better options than staking? Well with things on the surface…not so much
right now…going to something like compound, a popular well known lending and borrowing
DeFi tool compound is there, and as we can the supply APY is only .06 percent…borrow
is 2.30 percent. Shoot, if the staking rewards on the beacon
chain were unlocked, there would be a huge borrowing opportunity on compound, to go stake
and earn that higher ROI. But those rewards are tied up for now… But going to Defirate and their nice little
tool, we can see that nothing is beating Ethereum's staking right now, providing better returns,
even something fully centralized like BlockFi. So to get better returns, you would have to
get pretty damn DeFi creative if you would like to see above 10 percent APY on your ethereum…. And it’s possible, with some of the yield
farming opportunities out there…a good tool for this is the good ole coingecko…and as
we can see, with pools with wrapped ETH, there are actually many providing higher APYs…mostly
from that crap sushiswap, but there are some from harvest finance, index cooperative, and
ampleforth too that use ETH as collateral.

But here is the thing…with these pools,
you need to also have an equal amount of the other token in the pool….per example index’s
cooperative wrapped eth, DPI pool, which is providing over 28 percent APY right now…you
need equal part Ethereum, equal parts DPI for that pool to enter it and earn. Which means, depending on your circumstance…you
have to sell some ethereum you already have, risking your “safety” asset to get the
DPI or you have to buy DPI with CASH.

So depending on how the markets turn…this
could be a bad thing. Markets go down, turn bearish… DeFi always get’s rekted harder than Ethereum…joining
this pool might not be the best idea, compared with just Staking in those circumstances. And, the ethereum beacon chain has been in
the works for a long time, and had code review after code review….Many of these DeFi protocols
haven't…and there may be bugs, just waiting to be exploited. Risk with yield farming is MUCH higher than
solo staking….especially with inexperienced teams working with code forks. Be careful if that is the path you choose. Now, finally…lets talk about the creation
of new ether…as we have only been discussing what to do with the stack of already created
ethereum sitting in people’s wallets. Prior to the launch of staking and the beacon
chain, the only way to get the precious new Ether was through proof of work mining… The beacon chain offers you the option to
use your ether collateral to get new emission, but the proof of work chain will be running
in parallel to the beacon chain, running all smart contracts, thus getting all transaction
fees until the beacon chain is ready…when that will happen??? No one knows… So the question is? What’s more profitable? Ethereum Staking or Ethereum proof of work
mining? Early staking is providing over 18 percent
APY with some estimates putting it above 12 even as more come online? So what’s does mining look like? Well, as everybody knows..new GPUs hit the
scenes here recently from the big players, and I guarantee PC gamers are hating miners
right now as they are swooping them up.

Nvidia and AMD released their next generation
models…Nvidia the RTX 3000 series and AMD the Radeon RX 6000 series..and they are both
beasts for PC gaming applications and MINING. The most powerful for Nvidia is the 3090,
which clocks out at 153 megahashes per second and only uses 350 watts of power. AMD’s most powerful is the RX 6900 XT…and
this uses less power only 300 watts, but can only pump out a max hash rate of 72 megashes…and
Nice hash already has a calculator comparing the two… and using an average electricity
rate of 12 cents per kilowatt hour…we can see that Nvidia 3090 is providing more a better
return per day, of 4.23 cents. Not bad, that's over 1500 dollars per year…but,
you have to think about the initial investment into the GPUs for mining…and the 3090xt
has a hefty price tag of 1500 dollars. So 1 year into mining, there would be no profit,
and you would only “break” even. Now the same goes with staking, you do have
to “invest” into 32 ethereum to begin even solo staking. And that’s a seriously hefty price tag of
nearly 19000 dollars…so if all things stayed the same, Ether price, and the current staking
rewards, etcetera…it would take 2600 days to get that investment back, or over 7 years.

But, here’s the difference between ethereum
staking and gpu mining. Ether, as a validator can be thought as a
GPU miner for a proof of stake network…it’s the hardware that secures the network, and
gets the rewards..the difference is Ether is an appreciating asset, while GPUs are a
depreciating asset. GPUS lose value over time..you always have
to sell them for less than what you bought them for….and the fate of Ethereum as proof
of work only has 2 years at max…and Ether has proved since it’s birth, to gain value..things
do not stay the same… But I do have to mention this, there still
may be a way to make money in the next 1 to2 years with proof of work ethereum mining..with
specialized machines made for the Ethash algorithm. Going to ASISminervalue.com we can see there
are 8 machines with 4 from innosilicon providing between 25 to 15 dollars per day. Tasty…but how expensive are the machines? Well the top machine, a10 pro + isn’t out
for consumers yet..but the a10 pro is and it provides a whopping 500 megahashes per
second, at 750 watts…which means profits of $17.83 cents per day.

That’s over 6500 dollars per year…so how
much does it cost? About 4400 with shipping, So that means, all things stay the same break
even is under a year, after about 8 months…and then you're into the profit over 2100 for
an entire year…considering the machine still a valuable asset, you can get rid of, sell
to someone for let’s say 3700 after a year, that’s still an APY of over 31 percent… But, the time is running out for these machines…they’re
specialized for the ETHhash algo, and when ethereum moves fully to proof of stake, sometime
between a year to 2 years…you don’t wanna be stuck having to mine only Ethereum classic
do ya or do ya? Cheers I’ll see you next time!.

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