Ethereum is a technology company, ETH is a stock, not an asset
Ethereum has recently surged wildly. Ethereum is a decentralized communication network where everyone uses ETH as a network channel for token information communication. This communication requires a certain fee. Unlike ordinary network communication, the more users there are, the more technology develops, and the lower the communication cost becomes. However, the Ethereum network has increasing marginal costs; the more users there are, the more expensive the network becomes. At the same time, as the number of users increases, everyone expects the value of the network to rise, leading to an increase in the price of fees paid in ETH, which in turn causes the number of users to decline. This is a basic principle of microeconomics.
It can be seen that, although the moat is relatively wide, the profitability growth of Ethereum's business model is limited.
BTC continues to grow because BTC is a new major asset class and also a good solution for the United States to address its debt issues. BTC builds its underlying value on energy consumption, and its risk-return structure is different from all current major asset classes; its value increases with the growth of the money supply M2.
