My theory on why ETH will go down, BTC up

The ETH run right now is being fueled primarily by ICOs.

These are vehicles for startups and companies to raise funds to build teams, pay salaries, rent office spaces. Even buy other companies.

This creates a very strong sell pressure over time. The monthly burn of over-funded companies has a snowballing effect.

Don't believe me tech companies are not good at managing expenses? Check out the sweet Chrome Panda Dropbox bought for 100k when they were still struggling as a business: http://ift.tt/1SZJ8WB

Raising money with ICOs is almost a guarantee that ETH will be sold every month to pay for stuff. A lot of it will even move into BTC, since it has a 6-year advantage in its proven safety and stability.

These are all companies with young, inexperienced teams.

They will start using the money, and then more and more of it. The cultures of Bitcoin and ETH are right now opposite.

Bitcoin strongly in the direction of "HODL", constrained supply, predictability, etc. ETH will move in the direction of spending, which will bring the price down.

submitted by /u/sailingnow
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