Mike Novogratz: Ethereum will overtake Bitcoin because it's a technology bet

Mike Novogratz: Ethereum will overtake Bitcoin because it's a tech bet - Michael Novogratz scaled

According to Michael Novogratz, CEO of Galaxy Digital and a major supporter of the cryptocurrency industry, Ethereum currently represents a more attractive investment option than Bitcoin. In his view, BTC acts primarily as a hedge against inflation, while its rival has more advantages, such as being a tech bet.

Bitcoin lags behind Ethereum

The idea of ​​Ethereum sitting on the throne of the digital asset industry one day has been circulating in space for a while. While there wasn't a real challenge until recently, the tides appear to be changing this year. While Bitcoin is still the leading cryptocurrency, it has seen USD growth of 70% year to date. Ethereum has instead grown by almost 500% since the beginning of 2021 (here the quotation in real time).

In a recent interview for CNBC, Mike Novogratz, a veteran investor and CEO of Galaxy Digital, added his name to the list of people who consider Ethereum the best performing project. He said the primary cryptocurrency has limited use cases and is mainly used as a hedge against rising inflation.

On the other hand, the network behind Ether allows for the implementation of smart contracts and the creation of decentralized applications (dApps). It is a programmable blockchain network that finds use in numerous areas, including DeFi and NFT.

“That's why you see that Ethereum has truly outperformed Bitcoin. People see Ethereum as a technology bet and Bitcoin as a devaluation of the fiat currency bet, ”Novogratz noted.

And it is not the first time that he has stated it

Interestingly, this is the second time he has expressed such an opinion. A few months ago, the top manager predicted that Bitcoin would be the digital version of gold for the next 3000 years, while Ethereum has a "very different" use case and could surpass it in the future.

Novogratz also gave its two cents to the recent decline in the cryptocurrency industry. He does not think that the price of bitcoin could drop below $ 40.000 as institutions and even some countries have already realized the potential of the asset.

"People have realized that cryptocurrencies are an asset class and that bitcoins are part of a cryptocurrency wallet," he concluded.

Subsequently, he noted that the economy is booming, which means that investors should expect a "monstrous fourth quarter because we have high inflation and high growth".

Who else supports the idea?

In July of this year, analysts from Wall Street investment bank Goldman Sachs said Ethereum is the blockchain project with the highest real-use potential. They added that it is the most popular development platform for smart contract applications. Experts have said that Bitcoin has the first mover advantage, but that won't stop it from falling behind its rival.

Mark Cuban, the owner of the Dallas Mavericks, is another individual who recently praised Ethereum. He advised beginners in the cryptocurrency industry to select it as an investment choice as it has the greatest upside potential.