Well-known trader and analyst CryptoCobain shares his thoughts on the potential threat Ethereum (ETH) poses to Bitcoin (BTC).
Ethereum Could Affect Bitcoin’s Movement
In a conversation with Three Arrows Capital CEO Su Zhu and crypto researcher Hasu, the famous trader explains how Ethereum could disrupt Bitcoin’s upward momentum.
CryptoCobain suggests that Ethereum could jeopardize the success of the leading crypto asset as long-term BTC holders sell their assets to ETH if the market value of Bitcoin exceeds Bitcoin for a long time.
“I think a lot of people holding Bitcoin right now are in“ never sell ”mode. Worst case scenario, they will say ‘We should allocate it to Ethereum too’ and they will put another 1% share from their budget. Over a longer period of time, I think it is Ethereum that will cause a bearish situation for Bitcoin. ”
Ethereum Will Go Even Higher
In CryptoCobain’s view, Ethereum will inevitably change the market value of Bitcoin temporarily, but only threaten Bitcoin if it can sustain this growth.
CrytpoCobain likens Ethereum to the early stages of the internet where users thought would exist alongside things like radio and television.
The total product market for Ethereum is only huge. So even if Bitcoin is a store of value as a digital gold expression, the market value of gold is still higher than the total market value of everything. It’s like all the money is in the top position.
CryptoCobain adds that as it gains interest as a legitimate asset along with Bitcoin, institutions will increasingly make an effort to buy Ethereum.
“I think you will see Ethereum corporate adoption soon. I read a report. It was all about Etheruem and now they say it looks like a top-notch Bitcoin peer in their eyes.
I think there will be some movement [and we] will see some cold wallets move and allocate Ethereum. “