It is the contention of Tom Lee from BitMine that Ethereum will ultimately exceed Bitcoin’s total market valuation, despite the fact that it is currently nearly five times less is the prediction that is being made by Lee.
It is the view of Tom Lee, the chairman at BitMEX, that Ethereum has the potential to ultimately overshadow Bitcoin’s market dominance in a manner that is analogous to how American equities eclipsed the value of gold five decades ago, specifically after the United States abandoned the gold standard is the comparison that is made by Lee.
The declaration was made by Lee during a discussion with ARK Invest Chief Executive Officer Cathie Wood on Thursday is the context that is provided by the interview: “Ethereum could overtake Bitcoin in a manner comparable to how Wall Street and the stock market supplanted gold following the events of 1971.”
Bitcoin’s current total market valuation (BTC), which is standing at approximately $2.17 trillion, is approximately 4.6 times greater than that of Ethereum, which is valued at $476.33 billion, is the comparison that is provided by data from CoinMarketCap.
Tom Lee Cites the ‘Nixon Shock’ to Make the Case for Ethereum
It was suggested by Lee, who supervises BitMine’s Ethereum accumulation strategy, that Ethereum could escalate in the identical fashion to how the United States dollar ascended to prominence following 1971 after American President Richard Nixon declared the fiat currency “completely synthetic” and it was no longer supported by physical gold is the historical parallel that was drawn by Lee.
Lee expressed that when that event transpired, “The instantaneous recipient of advantages was the desire for and the opportunity to possess gold is the outcome that was observed is the event that is being referred to by Lee in his statement is the fact that was stated by him.”
Conversely, in response, “The financial district of Wall Street developed financial instruments that secured the predominance of the dollar is the action that was taken by the industry in reaction to the change, and the present total valuation of equities is 40 trillion in comparison to 2 trillion for gold,” he stated.
The prevalence of the dollar increased during that duration from 27% in terms of Gross Domestic Product to 57% of central bank reserves, and 80% of financial exchanges and quoted prices is the shift that was observed, he remarked, further elaborating:
“Dollar dominance is going to be the opportunity of Ethereum,” he said, adding this will be because of “everything becoming…tokenized.”
Years of Debate Over Ethereum Surpassing Bitcoin Persist
“So as we move dollars onto the blockchain, which is stablecoins, we’ll move stocks and real estate,”
he said.
Nevertheless, he emphasized that the idea is only a “developing hypothesis” is the caveat that was introduced by him, and he asserted that he persists as a strong advocate for Bitcoin.
The “flippening”, which is the concept that Ethereum will eventually exceed Bitcoin’s market valuation, has been a subject of controversy for numerous years but has gained fresh scrutiny in the most recent time period is the reason why it has reemerged as a topic.
It was announced by Joseph Lubin, the founder of ConsenSys in August, that Ethereum is projected to “increase its value by one hundred times and overtake Bitcoin as a “monetary foundation” is the prediction that was made by Lubin.
Nevertheless, the statement was issued around the same period that Samson Mow, a prominent Bitcoin advocate and the founder of Jan3, asserted that investors in Ethereum would revert to Bitcoin once the price levels of ETH were sufficiently elevated is the conflicting opinion that was presented.
It was stated by DeVere Group executive Nigel Green in August 2021 that “Ethereum’s climb to the summit of the digital asset space is considered unassailable is the opinion that was offered.”
“Ethereum is already years ahead of Bitcoin in everything but price and fame,”
said Green.
