Prominent trader and analyst CryptoCobain is sharing his thoughts on the potential threat Ethereum (ETH) poses to Bitcoin (BTC).
In a conversation with Three Arrows Capital CEO Su Zhu and crypto researcher Hasu, the pseudonymous trader explains how Ethereum could disrupt Bitcoin’s upward momentum.
CryptoCobain suggests that if Ethereum can overtake Bitcoin’s market cap for an extended period of time, it could jeopardize the success of the leading crypto asset as long-term BTC owners trade their holdings to ETH.
“I think a lot of the people that are holding Bitcoin now are in the never sell camp. And worst-case scenario they’ll go, ‘We should also allocate to Ethereum,’ and take another 1% allocation out of their treasury.
On a longer timeframe, I do think the bear case for Bitcoin is Ethereum.”
In CryptoCobain’s opinion, Ethereum will inevitably flip Bitcoin’s market cap temporarily, but will only threaten Bitcoin if it is able to sustain that growth.
“If you have a flippening that sustains or Ethereum largely gains on Bitcoin, I think that becomes troubling. A temporary flip is no problem for Bitcoin/USD…
I think the flippening is now inevitable, but I think it will be incredibly temporary. I think you will have a massive blow-off top. I think the ETH blow-off top will be either slightly before or slightly after the Bitcoin blow-off top.”
The crypto influencer in part believes the flippening will occur because Bitcoin’s addressable market cap as a gold substitute is around $10 trillion, while Ethereum’s addressable market cap is “everything.”
CrytpoCobain likens Ethereum to the early stages of the internet when users thought it would exist alongside things like radio and television, but in the end it swallowed up those mediums almost entirely.
“The total addressable market of things for Ethereum is just gigantic. So even if Bitcoin gets the store of value as digital gold narrative, the market cap of gold is still lower than the total addressable market of everything. Like, of all money.
When the internet launched and people got the internet wrong thinking it was an additional channel… rather than realizing the internet is just a new medium for all channels… The macro vision for Ethereum is that for all of money, whereas the macro vision for Bitcoin is now a digital gold, or store of value.”
CryptoCobain adds that institutions will increasingly swoop in to buy Ethereum, as it gains traction as a legitimate asset alongside Bitcoin.
“I do think you’ll see a bunch of institutional adoption of Ethereum soon. I read a report… and it was just all about Etheruem and saying it’s like a first-class peer of Bitcoin in their eyes now.
I do think there’s going to be a bit of a move, [and we’re] going to see some cold wallets moving and making allocations to Ethereum.”
l
Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Atelier Sommerland
The post The Bear Case for Bitcoin Is Ethereum, Says CryptoCobain appeared first on The Daily Hodl.
Go to Source
Author: Daily Hodl Staff
