ConsenSys Chief Decentralized Protocol Economist Lex Sokolin believes Ethereum has much higher upside potential than Bitcoin in the short term.
Lex Sokolin stated in a recent interview that the upcoming Ethereum merger could fundamentally change the way ETH is used, making it more suitable for savings. In his opinion, most of the users will invest their ETH in the protocol to secure it, which will make it look like a store of value on the network.
ConsenSys operates several large projects built on Ethereum, such as the MetaMask cryptocurrency wallet, as well as the Infura blockchain node infrastructure service, which allows developers to receive data and broadcast transactions on the blockchain.
Sokolin believes that the use of ETH as collateral in DeFi protocols suggests that there are investors who see Ethereum as a store of value – i.e., a super-secure monetary asset. He added that ETH is often used not only to support the protocol, but also as a unit of account for all types of goods, services and NFTs in Web3.
“Ether has the function of being a reliable asset and at the same time a store of value. I would love to see something similar in bitcoin. If it could be used as collateral inside Web3, it would make it an even more sought-after asset,” Sokolin said.
Earlier, the CEO of the FTX exchange, Sam Bankman-Fried, called the transition of Ethereum to a new algorithm a promising decision, but warned investors about potential losses in the crypto industry.
Source: Bits
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