Investment strategist Lyn Alden conducted an economic analysis of the Bitcoin and Ethereum networks and stated that Ethereum is just an “experimental product.”
Alden compared Ethereum to the Concorde supersonic airliner that crashed in 2000. Ethereum is functional because “hundreds of smart developers are working on it.” But in the long term, this network is unlikely to become an economically sustainable project, since Ethereum is not yet a finished product, compared to Bitcoin.
Ethereum nodes are more at risk of “centralized attacks” should the government take drastic measures against the third-party services that serve them, Alden said. Regulatory actions may not necessarily be aimed at destroying Ethereum, but they can complicate the launch of applications based on this blockchain.
Alden noted that ether has every chance of doing well in terms of value next year. But as long as the network is undergoing changes, it is a “speculative tool in the early stages of development”, and not a ready-made and stable product. The expert explained that there are large “cultural differences” between Bitcoin and Ethereum – the number of bitcoins is limited to 21 million coins, while Ethereum is characterized by an arbitrary monetary policy.
“Ethereum has an experimental character and elements of the game, which is what attracts it. Maybe in the next five years, when the Ethereum 2.0 update is launched, Ethereum can be called a finished project like Bitcoin. But now Ethereum is just an experiment, ”Alden said.
At the same time, Alden is quite optimistic about Bitcoin and believes that despite its volatility, the coin has great potential for growth. According to the expert, against the background of inflation, the bitcoin rate will only increase. In addition, due to the scarcity of coins and the halving of the reward for miners, Bitcoin has become even more valuable.
“Bitcoin does not demolish everything in its path like many altcoins. It moves slowly but in the right direction. The more ideas and innovations emerge in the digital asset industry, the more Bitcoin developers have to improve the protocol and ecosystem. ”
Note that the deployment of Ethereum 2.0 has already begun – last month, the Beacon Chain was successfully launched as part of the first phase of the update. A few days later, Ethereum co-founder Vitalik Buterin presented an updated roadmap with a detailed overview of the future development of the new blockchain.
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