In a detailed tweet that caught the attention of the crypto community, Bitwise Chief Information Officer (CIO) Matt Hougan laid out five comprehensive reasons why he believes ethereum (eth) stands out as a more attractive investment opportunity than even bitcoin. Notably, Bitwise is among the companies that launched their Ether futures ETFs yesterday, as well as among the contenders for a bitcoin spot ETF.
Why ethereum Could Outperform btc
Starting with his main reason, Hougan emphasized the role of the network as a revolutionary global computing platform. He tweeted: “ethereum targets the biggest investment opportunity in cryptocurrencies; bigger, even, than bitcoin (and I love bitcoin). “ethereum is a new global computing platform that could reconfigure the way the entire financial industry and much of the creative world works.” This transformative potential positions ethereum to dramatically reshape multiple sectors, further cementing its position in the crypto landscape.
Hougan’s second point revolved around the economic functioning of the eth network. He pointed out the distinctive way in which the value of Ether increases with its use. “The value of ethereum is driven by cash flows,” he commented, noting that increased activity on the network translates directly into revenue. This, in turn, generates cascading benefits for eth holders, mirroring the rewards of traditional financial instruments such as buybacks and dividends.
Venturing further into the networking attributes, Hougan highlighted the platform’s robust ecosystem, populated by a wide variety of applications and developers. He stated: “ethereum has the largest number of applications and developers in crypto. If you are looking for where the next innovative crypto application will appear, look in the ecosystem.”
In addition to this, it illustrated the accelerated integration of ethereum into the business operations of major corporations. Hougan cited Nike’s impressive revenue of $200 million from digital products on ethereum, PayPal’s innovative payment solution on the platform, and the rapid liquidation of Goldman Sachs’ $100 million bond on ethereum as testaments to its growing traction. institutional.
Lastly, he identified the potential of blockchain as a dominant platform for real-world tokenized assets. “ethereum is likely to be the home of real-world assets in the crypto ecosystem. “If you are excited about tokenization, you should be excited about ethereum,” he stated.
The eth community, represented by figures such as Ryan Berckmans, echoed his agreement and praised Hougan’s clarifications. Berckmans responded saying, “Great thread, Matt. Can you open your direct messages so the eth diehards can communicate?
While there were no notable responses from the bitcoin community, several members of the through backdoor deals. Digital Asset Investor.XRP wrote: “Big problem Matt…. #ETHGATE.”
EIP-4844 will be a game changer
Hougan’s bullish sentiments on eth are not new. In a conversation with Anthony Pompliano in April, he clarified about the upcoming ethereum Improvement Proposal 4844 (EIP-4844, “Proto-Danksharding”) and its potential transformative impact on transaction costs.
“I’m very excited about what’s happening in the ecosystem and particularly with EIP-4844 and how it will reduce the costs of layer 2 solutions. I think people don’t understand how important that is. They do not understand the value of a price that is effectively zero. (…) I think it is a turning point. So I’m really excited about that,” he said. commented.
The update was recently delayed until early next year, as Bitcoinist reported. The reason for this is the lack of public testnets so far and the upcoming Devconnect conference in November 2023.
At press time, eth was trading at $1,665.
Featured image of Pensions and Investments, chart from TradingView.com
