One of the reasons strategist and investment guru Lyn Alden has not invested in Ether is because it considers the Ethereum network a “work in progress” compared to Bitcoin.
Ethereum’s century-old economic analysis released today compares the smart contract network to a Concorde plane: functional as “lots of smart developers” are working on it, but is unlikely to be financially sustainable in the long term. To substantiate its claim, it tested some of Ethereum’s core functions, and described the use of many decentralized applications as “cyclical and speculative”.
In addition, it said network nodes are more at risk of central attack “if there is any government interference with third-party contract services.” Alden said that regulators “won’t necessarily downgrade Ethereum,” but that they can effectively threaten the use case by making it difficult to run apps.
Alden summed up his thoughts on Twitter:
“Ethereum may be doing well next year in terms of price, but as long as it changes the baseline, it is still speculative in alpha development, and not an end / stable product.”
On the one hand, the investment expert said that Bitcoin (BTC), with a steady supply of 21 million coins, does not have the “arbitrary monetary policy” of Ethereum, in addition to the fact that there is a “cultural gap” between the two. . Networks.
“Ethereum is attracting more gaming culture and more experiences,” Alden said, noting that some projects created on the network have failed. “ Maybe in another 5 years, when Ethereum 2.0 arrives and has been operating for a while, with a steady monetary policy, it could be considered a completed venture like Bitcoin.
Alden said last year that she was “very optimistic” about Bitcoin given its absence, its halving of the decline and the potential for cryptocurrencies as a backdrop to inflation. In her analysis of Ethereum, she added that she prefers Bitcoin due to the “risk / reward opportunity” and stated that there is a “bullish potential” for all currency price fluctuations.
“[Bitcoin] doesn’t move fast and crack things like many altcoins, but it moves slowly and tends to do things right,” she said. “The more ideas and innovations emerge in the wider digital asset industry, the more Bitcoin developers need to work on the protocol and their ecosystem.”