The Bitcoin versus Ethereum debate has been going on for years and gets stronger as the market grows. Putting the two best cryptocurrencies against each other has been one of the biggest pastimes for the market. However, not everyone adheres to the school of thought that they are competing with.
ARK Invest CEO Cathie Wood is known in the cryptocurrency space for giving her views on Bitcoin, but Ethereum has largely been left out of the conversation. Wood is primarily known in space for his $ 500.000 Bitcoin forecast (now a distant view of quotation to the downside of these days), which has supported at various times.
The CEO has always said that he believed that bitcoin was still widely undervalued and will continue to grow in the coming years. However, Wood pointed out that the # 1 Altcoin, Ethereum, is even more undervalued than bitcoin.
Ethereum is still undervalued
Wood was on CNBC's Squawk Box to talk about the cryptocurrency market. On the show, the CEO expressed that Ethereum is still highly underrated. He put this into perspective using bitcoin, the largest cryptocurrency on the market, which he believes is still highly undervalued. Wood explained that while bitcoin is undervalued, ethereum is still highly undervalued compared to it.
One of the main reasons behind investing in ethereum has been the usefulness of the digital asset. Decentralized Finance (DeFi) has seen tremendous success despite being only a year old and Ethereum is home to most of the DeFi business. Wood reiterated the fact that DeFi has been the driving force behind the success of the digital asset.
"The fact that it is the venue, or protocol, for DeFi and NFTs suggests that it is even more underrated than Bitcoin is, precisely because there are new worlds growing on top of it."
According to the CEO, ethereum is still in its infancy and has a long way to go, while bitcoin has already been established to be a monetary system. He added that institutions will move more into DeFi and NFT, which will "accelerate" its growth.
Still bullish on Bitcoin
Wood did not fail to reiterate his position on bitcoin. The CEO noted that institutional investors are moving into the digital asset. Bitcoin has become impossible to ignore, and Wood explained that institutions need to explore it. “Institutional managers need to look at new asset classes that are evolving and that have low correlation,” the CEO said. "This is the Holy Grail in terms of asset allocation."
Bitcoin has undoubtedly had a good run in its over a decade of existence. However, Cathie Wood expects even more growth for the asset. Last month, the CEO expressed that with institutions moving the most in bitcoin, it could rise as high as $ 500.000 over the next five years.