The future of Ethereum ETH is more like Moutai

Many people compare Bitcoin with Moutai, a Chinese stock on the A-share market, but I think many of Ethereum’s current features are more like Moutai.

First: Pledge is similar to the lock-up period for major shareholders of Moutai with a holding of more than 5%.

Everyone knows that there is a protection system in A-shares, that is, individuals and institutions holding more than 5% of the shares become long-term shareholders. If you hold more than 5% of the shares, you cannot sell them easily, and there will be a lock-up period. And you must announce your purchase and sale of stocks. This is very similar to ETH pledge. The pledged ETH has a lock-up period, but Bitcoin does not have such a system. Bitcoin is fully circulated, and the lock-up and holding of positions are all based on private gentleman agreements between the market and large institutions, which are not mandatory in theory.

Second: The deflation and cancellation mechanism of ETH2.0 in the future will be similar to that of Moutai

Moutai is only produced so much each year, and the rigid market demand (drinking) is similar to the future fee cancellation mechanism of ETH2.0. Because it has to be drunk every year, Moutai will not cause inflation due to continuous production. ETH2.0 will have this feature of Moutai in the future.

Third: Who is holding ETH? This is very similar to Moutai

The first group of people who hold ETH are definitely institutions. The second group are Ethereum miners who are worried that the miners’ income will be reduced after ETH2.0 and want to continue to participate in the future mining of 2.0. These Ethereum miners are similar to wine merchants who store Moutai and want to increase the value of the wine by storing it. Wine merchants are part of the industrial chain, just like Ethereum miners are part of the Ethereum industrial chain and are not end consumers.

The above is the view of Caiyun Bit-Miner Carbon Xiaojing, everyone is welcome to leave a message