Bitcoin and Ethereum’s dominance is not set in stone, says Crypto Hedge Fund veteran Su Zhu

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Crypto hedge fund veteran Su Zhu says Bitcoin (BTC) and Ethereum (ETH) are both good investments, but that doesn’t guarantee that they will continue to dominate crypto.

In a new episode of the Uncommon Core podcast, the CEO and CIO of cryptocurrency hedge fund Three Arrows Capital explains why he sees the possibility of other digital assets overtaking BTC and ETH.

“Bitcoin and Ether are probably the strongest currencies in crypto.

They sort of have the best distros and they have the most decentralization, but that doesn’t have as much of an effect on the network when it comes to adding new users to the network as you might think.

For the same reasons Ether gained on Bitcoin over the last year, other networks are now winning on Ether, so I think the main reason I see for that is if you look at the average active addresses on Ether, it is not much higher than in 2017. It is not double, for example.

The reason given is that these are whale chains and that’s good and well new users will use other Layer 2 (L2) solutions or they’ll use this or that, but it actually goes a lot towards the roadmap. Bitcoin 2017 and I think the challenge there is just that users won’t necessarily be waiting for this.

For Ethereum, in particular, Zhu says that not everyone may be interested in what the blockchain has to offer.

“Although Bitcoin and Ethereum can be money, I don’t know if Ethereum can somehow dominate other chains and say, ‘all the value goes to me or everyone has to come back to me’, because I don’t think it makes business sense.

It doesn’t make any sense of business logic that, you know, all users will end up paying rent back to ETH holders. It is not given.

I think ETH can compete well with silver against Bitcoin because Bitcoin has a very different compromise pool than ETH, but I don’t think Ethereum itself as a network is really useful for most people because… they don’t need that level of decentralization that Ether tries to say it supports.

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