An analyst at the financial company Fidelity Investments believes that next-generation blockchains will not be able to win in the competition with the giant ecosystems of BTC and ETH.
Macroeconomist at one of the largest US holding companies Fidelity, Jurrien Timmer, in an interview with crypto expert Raoul Pal, said that Bitcoin and Ethereum have achieved a high level of protection from competition with other cryptocurrencies. Timmer added that Bitcoin and Ethereum are comparable in terms of their market share and dominance in the crypto industry to a technology giant like Apple.
“According to Metcalfe’s law, the larger an ecosystem becomes, the more exponentially its value grows. An example is the computer manufacturer Apple. As an example of its huge annual income, you can see that the more iPhones and other devices it sells, the more it grows exponentially until it becomes so powerful that a giant abyss forms around it, which cannot be bridged even if something is invented tomorrow it is much better than the iPhone, ”the expert is sure.
The analyst believes that other crypto projects will continue to compete with the top two digital assets by market cap. But this is useless as Bitcoin and Ethereum have already established themselves as market leaders.
“I think ETH and BTC have hit the thresholds. This does not mean that there will be no other coins and other networks. But I think they passed the test and got big enough to be trusted and taken seriously. A couple of years ago, a lot of investors were saying, “Well, bitcoin could go out of the market pretty quickly.” But their train has already left,” Timmer insists.
Not everyone agrees that Bitcoin and Ethereum are on the same level. In July, the CEO of MicroStrategy said that having a cryptocurrency issuer makes it possible to change the blockchain, so Ethereum cannot be considered a commodity – unlike Bitcoin, which cannot be changed.
Source: Bits
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