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According to Michael Novogratz – the CEO of Galaxy Digital and a prominent advocate of the cryptocurrency industry – Ethereum currently stands as a more attractive investment option than Bitcoin. In his view, BTC acts mainly as a hedge against inflation, while its rival has more advantages, such as being a technology bet.
Bitcoin Lagging Behind Ethereum
The idea of Ethereum sitting on the throne of the digital asset industry one day has been circling in the space for a while. Although there was no real challenge until recently, the tides seem to be changing this year. While Bitcoin is still the leading cryptocurrency, it has marked a USD growth of 70% YTD. On the other hand, Ethereum is up by almost 500% since the start of 2021.
In a recent interview for CNBC, Mike Novogratz – a veteran investor and CEO of Galaxy Digital – added his name to the list of people viewing Ethereum as the better performing project. He opined that the primary cryptocurrency has limited use cases and is mainly employed as a hedge against rising inflation.
On the other hand, the network behind Ether enables the deployment of smart contracts and the creation of decentralized applications (dApps). It is a programmable blockchain network that finds utilization in numerous areas, including DeFi and NFTs.
“That’s why you see Ethereum really outperform Bitcoin. People see Ethereum as a technology bet and Bitcoin as a debasement of fiat currency bet,” Novogratz noted.
Interestingly, this is the second time he has expressed such an opinion. A few months ago, the top exec 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 can surpass it in the future.
Novogratz also gave his two cents on the recent decline in the cryptocurrency industry. He does not think bitcoin’s price can fall under $40,000 as institutions and even some countries have already realized the asset’s potential.
“People have woken up that crypto is an asset class and that bitcoin is part of a crypto portfolio,” he concluded.
Subsequently, he noted that the economy is booming, meaning that investors should expect a “monster fourth quarter because we’ve got high inflation and high growth.”
Who Else Supports The Idea?
In July this year, analysts at the Wall Street investment bank – Goldman Sachs – said Ethereum is the blockchain project with the highest real use potential. They added that it is the most popular development platform for smart contract applications. The experts asserted that Bitcoin has the first-mover advantage, but this will not prevent it from falling behind its rival.
Mark Cuban – the owner of The Dallas Mavericks – is another individual that praised Ethereum recently. He advised beginners in the cryptocurrency industry to select it as an investment choice since it has the biggest upside potential.