Ethereum may finally surpass Bitcoin’s market share in the same method to how US equities overtook gold 54 years in the past, when the US deserted the gold normal, in accordance with BitMEX chair Tom Lee.
“Ethereum may flip Bitcoin much like how Wall Avenue and equities flipped gold publish 71,” Lee mentioned in an interview with ARK Make investments CEO Cathie Wooden on Thursday.
Bitcoin’s (BTC) market capitalization is about 4.6 instances bigger than Ethereum’s, standing at roughly $2.17 trillion in comparison with $476.33 billion, in accordance to CoinMarketCap.
Lee brings up the “Nixon Shock” to help Ethereum’s argument
Lee, who oversees BitMine’s Ethereum accumulation technique, advised Ethereum may rise in the identical approach the US greenback rose to dominance after 1971, after US President Richard Nixon made the US greenback “absolutely artificial” and now not backed by gold.
Lee mentioned that when that occurred, “The fast beneficiary was demand and a market to personal gold.”
Nonetheless, in response, “Wall Avenue created merchandise that made the greenback dominant, and the market cap of equities as we speak is 40 trillion in comparison with 2 trillion for gold,” he mentioned.
“Greenback dominance by the top of that interval went from 27% in GDP phrases however to 57% of central financial institution reserves, and 80% of monetary transactions, quotes,” he mentioned, including:
“Greenback dominance goes to be the chance of Ethereum,” he mentioned, including this might be due to “every part turning into…tokenized.”
The flippening has been an ongoing debate for years
“In order we transfer {dollars} onto the blockchain, which is stablecoins, we’ll transfer shares and actual property,” he mentioned.
Nonetheless, he emphasised that it’s nonetheless a “working concept” and that he stays a Bitcoin bull.
The “flippening,” the concept that Ethereum will someday surpass Bitcoin’s market capitalization, has been a subject of debate for years however has gained renewed consideration in latest months.
In August, Consenys founder Joseph Lubin mentioned that Ethereum will “surge by 100 instances and flip Bitcoin as a “financial base.”
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But it surely got here across the similar time that Bitcoin advocate and Jan3 founder Samson Mow mentioned that Ethereum buyers would swap again to Bitcoin as soon as ETH costs had been excessive sufficient.
Years earlier than that in August 2021, DeVere Group CEO Nigel Inexperienced, “Ethereum’s ascent to the highest of the cryptoverse appears unstoppable.”
“Ethereum is already years forward of Bitcoin in every part however worth and fame,” mentioned Inexperienced.
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