The turmoil in the value of cryptocurrencies has taken over the markets in recent weeks, with Ethereum, the largest cryptocurrency of the moment after bitcoin, wasting around 50% of its value.
Now, Todd Morley, co-founder and former executive of investment giant Guggenheim Partners, which has an investor and entrepreneur in the crypto and blockchain space, said the idea that Ethereum had “a much higher utility” than bitcoin, and is “where the inventory is. . “
“Ethereum, to me, has a much higher application [than bitcoin] thanks to smart contracts,” Morley told Bloomberg TV, warning that corporations that don’t have a virtual strategy threaten “something that” appears “and their walkman looks like an abacus. “”
“The technologies that have started, as described as bitcoin, are moving very temporarily to other parts of the world. Ethereum application developers are developing 20 times in the last six consecutive years, much, much faster than Moore’s Law, so that’s where the action is. “
Moore’s Law, invented by engineer Gordon Moore in 1965, postulates that computational speeds double every two years with the number of transistors consistent with the silicon chip.
Over the past 12 months, the popularity of so-called decentralized finance (cryptocurrency generation built on Ethereum’s most sensitive network to recreate classic monetary tools like loans and interest and designed to update the role of banks with blockchain-based protocols) has skyrocketed. . , helping ethereum’s value rocket.
Meanwhile, the meteoric popularity of non-fungible tokens (NFT), widely issued on the ethereum blockchain, to digitize art and collectibles has added an ethereum use case.
Ethereum’s rise in costs in recent months has far outpaced bitcoin’s, with Ethereum adding around 1,000% to 300% of bitcoin, even with the recent drop in Ethereum costs. it’s risen to nearly $300 billion, or just under some of the $700 billion of bitcoin.
Earlier this month, a report by Wall Street giant Goldman Sachs gave Ethereum a “high probability” of overperforming bitcoin as a “dominant” store, calling it “the Amazon of information. “
“Given the importance of actual uses to calculate the price reserve, it is highly likely that the ether will outperded bitcoin as a dominant price reserve,” Goldman Sachs analysts wrote, according to sections of the report shared on Twitter.
Elsewhere, some of ethereum’s long-awaited updates, which began lagging behind last year and are designed to help Ethereum scale and reduce its exorbitant transaction costs, may help the value of ether reach unprecedented levels.
Mark Cuban, the billionaire investor who made his mark through the Shark Tank TV series, said he expects ethereum’s long-awaited 2. 0 update to spark the progression of apps that “crush” bitcoin.
I am a journalist with great delight in covering technology, finance, economics and business around the world. As founding editor of Verdict. co. uk, I reported