Why This “Whale” Thinks Ethereum Could Soon Be “Better Digital Gold” Than Bitcoin
Bitcoin and Ethereum are rarely compared further when talking about market structures and price trends, and their underlying fundamental values are wildly different.
While Bitcoin is considered a store of value and a “digital gold”, Ethereum is believed to be more of a backbone of the ecosystem. The vast majority of actively used crypto space runs through the Ethereum blockchain.
However, the gap between the two cryptocurrencies in terms of underlying similarities may start to narrow in the short term, as one of Ethereum’s early investors, who is a so-called ‘whale’, points out that two changes to the ETH network could soon make it a “Better Digital Gold Than BTC”.
These comments came during a discussion about the lack of institutional participation in ETH, which he believes will change soon.
He is specifically targeting the Ethereum 1559 Enhancement Proposal and the Proof-of-Stake consensus system built into ETH 2.0 as reasons why the token will soon have inherent properties similar to gold.
These two factors will help ETH to become more scarce and have negative inflation, leading to a strong price increase in the medium term.
Ethereum Underperforms Bitcoin As Institutions Drive Continued Rebound
Institutions and “smart money” are widely thought to be driving the ongoing Bitcoin rally.
The cryptocurrency has been caught in an intense uptrend that has allowed it to stabilize around $ 18,000. The selling pressure here has proven to be quite intense, but it appears that the bulls are prevailing.
While BTC is a stone’s throw away from setting new all-time highs, Ethereum is still stuck below its 2020 highs of $ 490 and has a long way to go before hitting its 2017 highs of over $ 1,000.
Its underperformance of ether may be due to institutions driving Bitcoin’s rally and buying crypto due to the ‘digital gold’ narrative.
ETH Whale claims it will soon make Bitcoin the top digital gold
Tetranode, a supposed Ethereum whale that acquired its position around $ 1, explained in a tweet that he believes that the negative inflation that will occur as a result of the issuance of PoS and EIP-1559 will allow ETH to convert Bitcoin into a superior digital gold.
“It will be better digital gold than BTC. EIP-1559 + only issuance of points of sale, it is very likely that effective inflation will be negative. Institutions don’t like uncertainty, they want to see it live, so they will have to wait $ 10,000 for ETH, just like they expected $ 10,000 for BTC. “
If these network changes ignite a narrative about Ethereum as a store of value, you could see large inflows from institutions wanting to diversify across multiple digital assets.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.