Ethereum is outperforming Bitcoin because it’s more than just a hedge against inflation, opined Galaxy Digital’s CEO
According to Michael Novogratz – the CEO of Galaxy Digital and a prominent supporter of the cryptocurrency industry – Ethereum is currently a more attractive investment option than Bitcoin. For him, the BTC acts mainly as a hedge against inflation, while his rival has more advantages, such as being a bet on technology.
The idea of Ethereum sitting on the throne of the digital asset industry one day has been floating around in space for a while. While there hasn’t been any real challenge until recently, the tides seem to be turning this year. Even though Bitcoin is the leading cryptocurrency, it posted a 70% year-to-date growth in dollars. On the other hand, Ethereum has grown by almost 500% since the beginning of 2021.
In a interview Recently for CNBC, Mike Novogratz – a veteran investor and CEO of Galaxy Digital – added his name to the list of people who see Ethereum as the best performing project. He opined that primary cryptocurrency has limited use cases and is primarily employed as a hedge against rising inflation.
On the other hand, the network behind Ether allows for the deployment of smart contracts and the creation of decentralized applications (dApps). It is a programmable blockchain network that finds use in many areas, including DeFi and NFTs.
“That’s why you see Ethereum really outperform Bitcoin. People see Ethereum as a bet on technology and Bitcoin as a devaluation of the bet on fiat currency,” noted Novogratz.
Interestingly, this is the second time he has expressed such an opinion. A few months ago, the CEO predicted Bitcoin would be the digital version of gold for the next 3,000 years, while Ethereum has a use case “very different” and may surpass it in the future.
Novogratz also gave his two cents on the recent decline in the cryptocurrency industry. He doesn’t think the price of bitcoin can drop to below $40,000 as institutions and even some countries have realized the asset’s potential.
“People have realized that cryptocurrencies are an asset class and that bitcoin is part of a crypto portfolio,” he concluded.
He later noted that the economy is booming, which means investors should expect a “monstrous fourth quarter because we have high inflation and high growth“.
Who else supports the idea?
In July of this year, analysts at Wall Street investment bank Goldman Sachs said that Ethereum is the blockchain project with the greatest potential for real use. They added that it is the most popular development platform for smart contract apps. Experts say Bitcoin has the advantage of being the first mover, but that won’t stop it from falling behind its rival.
Mark Cuban – the owner of The Dallas Mavericks – is another individual who has praised Ethereum recently. He advised newcomers to the cryptocurrency industry to select it as an investment option as it has the greatest upside potential.