2021-12-11 17:04 |
In both 2020 and 2021, Ethereum (ETH/USD) has outperformed Bitcoin (BTC/USD). The largest altcoin has suffered minimal losses in the recent crash compared to Bitcoin, which has led to the ETH/BTC trading pair reaching all-time highs.
Mike Novogratz, the CEO of Galaxy Digital, has noted that Ether is outperforming Bitcoin because it has more use cases than just being a hedge against inflation. Novogratz stated that Ethereum is currently a more attractive investment compared to Bitcoin.
Ethereum is outperforming BitcoinNovogratz noted that as it stands, the major use case of Bitcoin was as a hedge against inflation. He noted that Bitcoin’s greatest competitor, Ethereum, had more use cases, such as being a technological bet.
Over the years, there has been debate on whether Ethereum could one day emerge as the largest cryptocurrency by surpassing Bitcoin’s market cap. While Ethereum has never posed any significant threat to Bitcoin, the recent market trends show that this could soon change.
Bitcoin’s annual gains currently stand at around 70%, while Ethereum’s yearly gains stand around 500%.
In a recent interview with CNBC, Novogratz stated that he viewed Ethereum as a better performer than Bitcoin. He opined that Bitcoins use cases were limited, given that the coin was primarily used as a hedge against inflation.
The Ethereum blockchain is one of the most utilized in the market because of supports smart contracts. It allows the creation of dApps, and it has become one of the largest networks used to build decentralized finance (DeFi) and non-fungible tokens (NFTs).
“That’s why you see Ethereum really outperform Bitcoin. People see Ethereum as a technology bet and Bitcoin as a debasement of fiat currency bet,” he stated.
Earlier this year, Novogratz had aired several sentiments stating that Bitcoin would be the digital gold in the future. However, he noted that Ethereum can surpass Bitcoin because it has a “very different” use case.
Nevertheless, Novogratz stated that the price of Bitcoin could not fall below $40K despite the recent bearish trend. He noted that such a decline could not happen because of an influx of institutional investors and countries that had invested in the asset.
He noted that a bullish cycle will be formed again, given that the digital asset market is booming. He urged investors to wait for a “monster fourth quarter because we’ve got high inflation and high growth.”
Other people also support Ethereum’s growthNovogratz is not the only major player in the crypto sector that has supported the idea that Ethereum can outperform Bitcoin in the future. In July, Goldman Sachs issued a report stating that the Ethereum blockchain had a high real use potential.
Experts at the Wall Street bank noted that Bitcoin had the advantage of being the first one on the market, but Ethereum had the most popular smart contract application. The institution stated that lack of use cases could make Bitcoin fall behind Ethereum. Billionaire investor, Mark Cuban, has also praised the gains made by Ethereum. He advised new investors to buy the cryptocurrency because it has the most potential.
The post Mike Novogratz says Ethereum is outperforming Bitcoin because of a high use case appeared first on Invezz.
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