HIVE Blockchain CEO: Ethereum will explode soon
HIVE Blockchain CEO Frank Holmes, CEO, and CIO of U.S. Global Investors predicted that Ethereum would be the next cryptocurrency to skyrocket after arguing that it could be seen in comparison to Bitcoin as silver is compared to gold.
During an interview with Kitco News, Holmes compared the demand for BTC and ETH to the need for gold and silver in the markets. In his words, when gold reaches a 50-day moving average and rises to 15-20%, silver explodes by 30%.
Comparing Ethereum with Bitcoin
When “Bitcoin makes the big charge, then all of a sudden ETH explodes to the upside,” he remarked. He also pointed out that while gold has historically been considered a safe asset, silver has had many uses.
Similarly, Bitcoin is used as a valuable asset, while Ethereum has more use cases due to the smart contracts on its blockchain. Holmes said:
“Ethereum has many more uses than Bitcoin does, the same way silver does — 20 percent of demand for silver is for solar energy. It has a green footprint, viruses can’t live on silver, it has many medical uses, etc.,” Holmes noted. “The same thing with Ethereum; it is used for DeFi, for NFT’S.”
During the interview, Holmes also mentioned that HIVE Blockchain, the first publicly traded mining company listed on the Toronto Venture exchange, faces challenges in Ethereum mining because many young people have even newer gaming GPUs. Most mine Ethereum, and thus they are getting fewer coins.
He also mentioned that the technology that used to produce 300 ETH in one day when Ethereum was trading at $300, now makes about 80 ETH coins a day. His biggest concern for ETH is moving to a POS (Proof of Stake) mechanism, which could help shrink supply but wouldn’t stop the demand and people mining for it.
The importance of Bitcoin in Holmes’ eyes
However, Holmes also defended the use of Bitcoin as a valuable asset, saying that the most significant benefit is “its ability to transfer immediately and cheaply versus traditional transfers of money like Western Union. So, remittance between developed and developing nations is a classic reason Bitcoin is a superior way of moving money”.
In terms of open interest in derivatives, Ethereum has overtaken Bitcoin. According to Cryptocompare’s exchange review, sincere interest in Ethereum-based futures rose 4.7% to $5.8 billion last month, while genuine interest in Bitcoin derivatives fell 3.7 percent. %, up to $11.9 billion since August.
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Text source: Whaletank Blog – Market Maker News
