Crypto Price Crash: Why Ethereum Could Eventually Overtake Bitcoin
Cryptocurrency price turmoil has gripped markets over the last few weeks, with ethereum, the second-largest cryptocurrency after bitcoin, losing around 50% of its value.
The bitcoin price has also fallen sharply from its all-time high of almost $65,000 per bitcoin set in mid-April, with fickle Tesla billionaire Elon Musk and fears of a China bitcoin and crypto crackdown taking the wind out of bitcoin's sails.
Now, Todd Morley, the co-founder and former executive at investment giant Guggenheim Partners who's become a crypto and blockchain investor and entrepreneur, has said he thinks ethereum has "much higher utility" than bitcoin—and is "where the action is."
"Ethereum, to me, has a much higher ultility [than bitcoin] through smart contracts," Morley told Bloomberg TV, warning that companies that don't have a digital strategy risk "something" suddenly showing up "and your walkman looks like an abacus."
"Technologies that began, as described as, bitcoin are moving very rapidly into other parts of the world. The app developers of ethereum are growing at 20x for the past six years straight, much much faster than Moore's Law, so that's where the action is."
Over the last 12 months, the popularity of so-called decentralized finance—using cryptocurrency technology built on top of ethereum's network to recreate traditional financial instruments such as loans and interest and designed to replace the role of banks with blockchain-based protocols—has soared, helping the ethereum price rocket over the last year.
Meanwhile, the run-away popularity of non-fungible tokens, largely issued on ethereum's blockchain, to digitalize art and collectibles have added another ethereum use case.
The ethereum price rally over the last few months has far outpaced bitcoin's, with ethereum adding almost 1,000% compared to bitcoin's 300%, even with ethereum's recent price crash.Source