Bitcoin (BTC) threatens to “flip” Ether (ETH), mainstream media claim, as some well-known FUD – fear, uncertainty and doubt – return to the spotlight.
With BTC / USD continuing to drop below $ 40,000, an old argument has re-emerged – but big investors are fighting back.
Bloomberg: ETH “will likely outperform Bitcoin”
In a May 31 article, Bloomberg cited multiple sources claiming that ether will overtake Bitcoin as the world’s preferred cryptocurrency in the future.
The largest altcoin “is likely to outperform Bitcoin at some point in the future as Ethereum will be superior in terms of innovation and developer interest,” Tegan Kline, co-founder of blockchain company Edge & Node, told the publication.
Another executive added that Ethereum has a “better growth story”.
The argument is far from new and has cropped up regularly throughout Ethereum’s existence. The recent major upgrade to the Ethereum network has kept its profile afloat, and ETH outperformed Bitcoin in the past year, forming the backbone of the decentralized financial (DeFi) phenomenon.
ETH / BTC, which has been on a long losing streak, hit its highest exchange rate in three years earlier this month.
In the past few days, ETH has also managed to retain more of its price gains than Bitcoin. As Cointelegraph reported, a major moving average for ETH / USD remains intact while BTC / USD failed to recapture “lines in the sand”.
Druckmiller compares Ethereum with MySpace
For all its impressive accomplishments, however, the claim that Ethereum will replace Bitcoin at the top is nonsense, argue many – and not just staunch Bitcoin supporters.
The only flippening this year pic.twitter.com/cY0necJ3GM
– William Clemente III (@WClementeIII) May 29, 2021
In an interview with The Hustle last week, billionaire investor Stanley Druckermiller became the latest non-tech figure to put aside doubts about Bitcoin’s endurance.
“I think BTC won the store game because it’s a brand, has been around for 13-14 years, and has limited supply,” he said.
“Is it going to be gold? I dont know. It’s damn safe to make a good imitation for the past year or two. “
To Druckermiller, Ethereum is to Bitcoin what MySpace is to Google.
“I’m a little more skeptical whether it can hold its position. It reminds me a little of MySpace before Facebook, ”he continued.
“Or maybe Yahoo is a better analogy before Google came along. Google wasn’t much faster than Yahoo, but it didn’t have to be. It just had to be a little faster and the rest is history. “
Others have long pointed out that technically, Bitcoin and Ethereum have little in common. Bitcoin’s limited supply and years of resistance to attack put it in a different league than any other cryptocurrency, and comparing it to another is like comparing apples and oranges.
“I generally think that all other digital currencies don’t really compete with Bitcoin and are in no way similar to Bitcoin,” said Saifedean Ammous, author of The bitcoin standard, famously told the Unchained Podcast in August 2017.
“I think their real competition is when I’m generous I’ll say Amazon Web Services and those kinds of platforms.”