One reason strategist and investment guru Lyn Alden isn’t invested in Ether is she considers the Ethereum network an â€œunfinished productâ€� when compared with Bitcoin.
Aldenâ€™s economic analysis of Ethereum released today compares the smart contract network to the Concorde jet: functional as it has â€œa ton of smart developers working on it,â€� but unlikely to become an economically sustainable project in the long run. She ran down some of Ethereumâ€™s main features as evidence of her assertion, calling the use-case of many decentralized apps â€œcircular and speculative.â€�
In addition, she said the networkâ€™s nodes are more likely to be at risk of a centralized attack â€œif there were to be some government crackdown on third-party node services.â€� Alden said regulators wouldnâ€™t “necessarily bring down Ethereum” but could effectively threaten the use-case by making the apps harder to run.
Alden summarized her thoughts on Twitter:
â€œEthereum could indeed do very well over the next year in terms of price, but as long as it’s transforming its base layer, it remains a speculation in alpha development, rather than a finished/stable product.â€�
On the other hand, the investment guru said that Bitcoin (BTC), with its fixed supply of 21 million coins, didnâ€™t have the “arbitrary monetary policy” of Ethereum in addition to saying there was a “cultural divide” between the two networks.
â€œEthereum attracts more of a gamer culture, and more experimentation,â€� said Alden, pointing out that some of the projects built on the network had resulted in failure. â€œMaybe in another 5 years when Ethereum 2.0 is in place and functioning for a while, with consistent monetary policy for that whole time, it can be considered largely a finished project like Bitcoin. Until then, itâ€™s experimental.â€�
Last year, Alden said she became â€œquite bullishâ€� on Bitcoin given its scarcity, halving, and potential of the crypto asset to act as a backdrop to inflation. She added in her analysis of Ethereum that she preferred Bitcoin for its â€œrisk/reward opportunityâ€� claiming that for all the coinâ€™s price volatility, there was an â€œupside potential.â€�
â€œ[Bitcoin] doesnâ€™t move fast and break things like many altcoins do, but it moves slowly and has a tendency to get things right,â€� she said. â€œThe more ideas and innovations that pop up in the broader digital asset industry, the more Bitcoin developers have to work with for their protocol and ecosystem.â€�
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