Stacks‘ Bitcoin maximalist founder Muneeb Ali said he doesn’t own any Ethereum since 2018 because it is losing against Bitcoin as money and as the major smart contract platform.
My reason for not holding any ETH for the 2018-2021 cycle:
(a) Bitcoin will win as money
(b) Newer L1s will gain market share against Ethereum for smart contracts.I think the reasoning remains true for coming years as well. Not downplaying developer traction etc of Ethereum.
— muneeb.btc (@muneeb) May 27, 2022
Ali started his thread by acknowledging Ethereum’s high developer traction and the contrarian nature of his investments. However, he said he was right to think so and pointed out that ETH lost value against BTC between 2018 and 2021.
Ethereum is fighting on two fronts
Ali argues ETH’s value loss is due to two different wars it is fighting on two different fronts.
ETH’s first war is about becoming a “sound money” that can behave as an inflation hedge. According to Ali, “sound money” is durable, stable, and resistant to change. It also has a predictable supply and operates on a simple base layer. He says:
“Bitcoin wins here hands down. Simplicity vs complexity is a trade off. Pick one.”
ETH is fighting its second war to maintain its dominance in the market as the leading smart contract platform, and Ali argues its losing.
Significant players in the smart contract market like Algorand, Avalanche, Solana, NEAR, and Stacks are rapidly developing alternative smart contract solutions. As a result, they gain market share, which shrinks Ethereum’s.
Ali says:
“[…] from a purely investment perspective, a basket of new quality smart contract L1s outperformed ETH by a lot. “
Ali finished his thread by arguing that there are better options on both fronts, Bitcoin being the first and most prominent.
Is ETH really losing against BTC?
Recent price changes on the ETH/BTC support Ali’s arguments. On 27 May,…
Click Here to Read the Full Original Article at Bitcoin – CryptoSlate…
