Ethereum beats Bitcoin because it’s a technology bet

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According to Michael Novogratz – the CEO of Galaxy Digital and a prominent advocate of the cryptocurrency industry – Ethereum is currently presenting itself as a more attractive investment option than Bitcoin. In his opinion, BTC mainly acts as a hedge against inflation, while its rival has more advantages, such as being a technology bet.

Bitcoin lagging behind Ethereum

The idea that Ethereum will one day sit on the throne of the digital asset industry has been circulating in space for some time. While there hasn’t been a real challenge until recently, the tides seem to be changing this year. While Bitcoin is still the primary cryptocurrency, it has seen USD growth of 70% YTD. In contrast, Ethereum is up nearly 500% since early 2021.

In a recent interview for CNBC, Mike Novogratz – a seasoned investor and CEO of Galaxy Digital – added his name to the list of people seeing Ethereum as the best performing project. He believed that the main cryptocurrency has limited use cases and is primarily used as a hedge against rising inflation.

On the other hand, the network behind Ether allows 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 NFT.

“That’s why you see Ethereum really outperforming Bitcoin. People see Ethereum as a technology bet and Bitcoin as a debasement of the fiat money bet,” noted Novogratz.

Interestingly, this is the second time that he has expressed such an opinion. A few months ago, the top executive predicted that Bitcoin would be the digital version of gold for the next 3,000 years, while Ethereum has a “very different” use case and may surpass it in the future. .

Novogratz also gave his two cents on the recent decline of the cryptocurrency industry. He doesn’t think the price of bitcoin can fall below $ 40,000, as institutions and even some countries have already realized the potential of the asset.

“People realized that crypto is an asset class and that bitcoin is part of a crypto wallet,” he concluded.

Subsequently, he noted that the economy is booming, which means investors should expect a “monster fourth quarter because we have high inflation and high growth.”

Mike Novogratz, Source: CNBC Who else is supporting the idea?

In July of this year, analysts at Wall Street’s investment bank – Goldman Sachs – declared Ethereum to be the blockchain project with the highest actual use potential. They added that it is the most popular development platform for smart contract applications. Experts have claimed that Bitcoin has the first-mover advantage, but that won’t stop it from falling behind its rival.

Another person who recently praised Ethereum is Mark Cuban – the owner of The Dallas Mavericks. He advised those new to the cryptocurrency industry to select it as an investment choice because it has the greatest upside potential.

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