Ethereum: The Most Exciting Cryptocurrency Investment Narratives For 2022

<p>Summary</p> <p>* Going into 2022, the most valuable cryptocurrency narratives are about NFTs, Ethereum scaling solutions, and crypto-gaming and metaverse environments.</p> <p>* It is highly likely that decentralised web 3 networks will eventually supplant FANG's hegemony over the 'future of technology' narrative.</p> <p>* Investing in Ethereum is the best way to capitalise on the overlapping growth of these cryptocurrency sectors.</p> <p>The objective of cryptocurrency investors is to profit financially from the widespread adoption of virtualisation. However, the optimal method is not as straightforward as 'selecting the best technology.' While the best technology will always win in a Web 2 environment, the Web 3 market operates according to entirely different rules.</p> <p>To be a successful Web 3 investor, I believe it is necessary to understand investment narratives in addition to technology-induced network effects.</p> <p>The Most Significant Cryptographic Narratives</p> <p>While the overarching cryptocurrency investment thesis is that centralisation is bad and decentralisation is good, this broad concept is subdivided into multiple layers in the crypto market based on purpose and technology.</p> <p>NFTs</p> <p>NFTs have unquestionably been the year's biggest surprise mover. This appears to be for a variety of reasons:</p> <p>* Psychologically - NFTs satisfy an innate human desire for community and companionship (a demand which has increased due to Covid).</p> <p>* Scarcity - NFTs amplify digital scarcity, frequently with circulating supplies of fewer than 10,000 unique pieces.</p> <p>* Virality - communities of voluntary NFT holders are financially rewarded for spreading the word about their respective projects. This results in organic and cost-free marketing for the NFT initiative.</p> <p>NFTs are fundamentally distinct from coins or tokens. Their customisability, in combination with their proclivity for forming closed and anonymous communities, is a novel concept for the human race. NFTs ha