Galaxy Digital CEO Explains Why Ethereum Is Outperforming Bitcoin
December 10 2021 - 3:30PM
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Bitcoin’s utility as an inflation hedge has been a big push for the
adoption of the cryptocurrency by investors. Ethereum on the other
hand is fast-rising to become the preferred crypto for hedging
against inflation for investors. The digital asset’s performance
over the past couple of years has proven that it is a strong
contender for bitcoin given the year-over-year returns recorded.
Only five years old, Ethereum has grown to become one of the
largest assets in the world. It was recently named as the 15th
largest asset in the globe, ahead of all of the big banks. Further
adoption of Ethereum going forward is inevitable and Galaxy Digital
CEO Mike Novogratz has commented on why Ethereum continues to
outperform pioneer cryptocurrency Bitcoin. Related Reading
| Goldman Sachs CEO Sidesteps Bitcoin Inquiries, Says
Blockchain Is More Important Ethereum Is A Technology Play
Novogratz attributed the growth of Ethereum to the technology which
is an attractive point for investors. Ethereum has proven to be one
of the cryptocurrencies with the most use cases, especially with
the advent of the decentralized finance (DeFi) space. Sitting down
with CNBC for an interview on Wednesday, the CEO pointed out that
Ethereum’s offering is larger than an inflation play. In contrast
to this, bitcoin’s biggest offering still hinges on its being an
inflation bet. The digital asset which has a supply cap of 21
million coins has always attracted investors due to its
deflationary nature. However, Novogratz pointed out that bitcoin
starts to lose its appeal when it is being pitted against a
devalued currency like the dollar. Related Reading | Why
Closing Out The Year Below $50,000 Could Be Bad For Bitcoin
Ethereum combats the problem of being just an inflation bet by
providing innovative tech in the blockchain industry. “People see
Ethereum as a technology bet,” Novogratz noted. Since investors are
betting on the tech rather than its use as an inflation hedge, it
serves a better long-term purpose compared to bitcoin. This has
helped it steal market share from the top cryptocurrency and
continues to do so. Technology Trumps Inflation An increasingly
pressing issue for investors has been the rate at which the Fed has
been pumping money into the economy. Experts have called for a stop
to the incessant money printing, which is driving inflation rates
through the roof but the pleas and warnings have fallen on deaf
ears. So, investors have had to turn to crypto investments that
have proven themselves to properly hedge inflation, such as
bitcoin. ETH getting ready to test $4,000 | Source: ETHUSD on
TradingView.com Bitcoin bull and crypto supporter Mike Novogratz
sees all of the money printing working out in the favor of
cryptocurrencies in what he calls a “monster fourth quarter”. He
however did not limit this expected bull market to crypto alone.
Novogratz also expects to see the stock market continue its rally.
Featured image from FT.com, chart from TradingView.com
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