DigitalX: ‘All the momentum for the moment is with Ethereum’
Digital asset company DigitalX (ASX:DCC) expects Ethereum to continue to outperform Bitcoin, but is long-term bullish for the prospects of both cryptocurrencies, according to chief executive Leigh Travers.
Travers told Ausbiz yesterday afternoon that the company’s Digital Asset Fund was “overweight Ethereum, relative to Bitcoin at the moment.”
Ethereum’s smart contract platform does face a number of competitors, unlike Bitcoin, which has no real competition in the digital asset space in its efforts to be a store of value, Travers said.
But Ethereum is becoming a decentralised internet platform that could compete with the likes of Google, Amazon and Apple, he said.
“It’s a massive marketplace at the moment, and Ethereum at the moment is the clear winner.
“They’re dominating all the other platforms in terms of the amount of applications that are being built on top, and even from institutions now, we’re starting to see them invest in other assets rather than just Bitcoin – (namely) Ethereum.
“Flows have actually been actually more towards Ethereum, and that’s a big positive I think,” Travers said.
It’s also a big change from 12 months ago, he added.
Digital payments, decentralised finance, businesses and NFT digital artworks are all being built on top of Ethereum.
The smart contract platform will also soon use 99 per cent fewer carbon emissions than Bitcoin, which has generated bad press for consuming so much electricity.
“So that’s an institutional shift to Ethereum that has just started.”
Also, Ethereum has a big catalyst coming through around July 14, when Ethereum is set to adopt Ethereum Improvement Protocol 1559, Travers noted.
The upgrade will cut transaction fees and should make Eth deflationary.
“So yeah, all the momentum at the moment is with Ethereum, whether that’s institutions, whether that’s demand for the actual blockchain, and short-term traders as well.”
But overall DigitalX believes the future is bright for both BTC and ETH, Travers said.
The company has been buying through the dip and believes crypto has strong long-term fundamentals.