- Strategist and investment guru Lyn Alden shared his views on Bitcoin and Ethereum. Alden cited his view of the Ethereum network as an “unfinished product” compared to Bitcoin, as one reason he didn’t invest in ETH.
Is Bitcoin or Ethereum a better investment?
Alden’s economic analysis of Ethereum released today compares the smart contract network with the Concorde jet: It is functional because it has “a ton of smart developers working on it” but unlikely to be an economically sustainable project in the long run. As proof of his claim, he reviews some of the main features of Ethereum and describes the use case of many decentralized applications as “circular and speculative”.
In addition, the strategist said, “if there is state pressure on third-party node services,” nodes of the network are more likely to be at risk of central attack. Alden said regulators would “not necessarily drop Ethereum” but could effectively threaten the use case by making applications difficult to run.
Alden summarized his thoughts on Twitter as follows:
Ethereum may do really well next year in terms of price, but as long as it transforms its base layer it remains a speculation in alpha development rather than a finished / stable product.
“BTC is ahead of Ethereum”
On the other hand, the investment guru said that with a fixed supply of 21 million tokens, Bitcoin (BTC) does not have an “arbitrary monetary policy” like Ethereum and there is a “cultural divide” between networks.
“Ethereum attracts more of a gaming culture and more experimentation,” Alden said. He said, and pointed out that some projects built on the network have failed.
“Perhaps within the next 5 years that Ethereum 2.0 will work, with consistent monetary policy, it can be considered largely a finished project like Bitcoin. But until then it was experimental. ”
Last year, Alden; He said he was “very hopeful” for Bitcoin because of its famine, halving and its potential to fuel inflation. In the Ethereum analysis, the strategist stated that he preferred Bitcoin because of the “risk / reward opportunity” and claimed that the coin has an “upward potential” for price volatility:
Bitcoin does not move and break things fast like many altcoins. He moves slowly and has a tendency to get things right. The more ideas and innovations that arise in the digital asset industry, the more Bitcoin developers have to work for their protocols and ecosystems.