Renowned trader and investor Peter Brandt has voiced a surprisingly pessimistic view of the future of ethereum. Brandt, known for his business acumen, has expressed doubts about ethereum's longevity as a major digital currency, especially compared to bitcoin (btc).
The uncertain future of ethereum according to Brandt
Brandt's forecast for eth, which he shared in a post on X, centers around his belief that eth lacks the attributes of a solid store of value. Unlike bitcoin, which has gained wide acceptance as a digital gold equivalent, eth's functionality and rising gas fees cast a shadow over its long-term viability.
Brandt went so far as to describe ethereum as a “piece of garbage,” a bold statement considering ethereum’s status as the second-largest cryptocurrency by market capitalization.
Notably, Brandt's skepticism particularly arises from eth's underlying technical challenges and high transaction costs, which have been a point of contention within the crypto community.
Ether $eth is not comparable to $btc as a store of value. Why hodl eth when you can hodl btc?
And eth's functionality and gas price make the cryptocurrency garbage
My prediction is that eth may not even be a listed asset in 10 years https://t.co/4WQ7wnFWEO—Peter Brandt (@PeterLBrandt) December 14, 2023
The trading guru maintains that these factors significantly hinder ethereum's potential as a reliable investment vehicle, especially compared to the more stable and widely accepted financial narrative of bitcoin.
Mixed outlook: ethereum as a swing trading vehicle
Brandt's bleak outlook on ethereum is not limited to its long-term viability. Going deeper into his analysis, he turned to the eth/btc chart for more information. Brandt noted that if eth/btc manages to stay above the $0.48 level, eth's “funeral” could be postponed.
Hello eth bulls, from a chart point of view, you should have hope. $ETHBTC can stay above .048xx. If this level is maintained, then the funeral of $eth will be delayed. pic.twitter.com/u4keL5Elqv
—Peter Brandt (@PeterLBrandt) December 15, 2023
This observation suggests a potential window for ethereum to regain its footing or at least stabilize in the short term.
Interestingly, despite his overall bearish stance, Brandt acknowledged a silver lining for ethereum. He concluded the analysis of it on a more optimistic note about its potential as a trading instrument. “A final note and then time to move on to different topics,” Brandt voiced:
I see eth as a legitimate SWING TRADING vehicle. It is performing well and has adequate liquidity.
In stark contrast to Brandt's gloomy prediction, several industry experts and analysts have a more optimistic outlook for eth. Recent insights from JPMorgan analysts, for example, predict a brighter future for eth, predicting that the ethereum-jpmorgan-says-ether-will-rise-above-bitcoin-in-2024/” target=”_blank” rel=”noopener nofollow”>altcoin will surpass bitcoin in 2024.
The prediction comes in light of the anticipated EIP-4844 update. Known as Protodanksharding, this upgrade, scheduled for the first half of 2024, is expected to significantly improve the efficiency and functionality of the eth network.
Featured image from Unsplash, chart from TradingView
