Ethereum’s value lies not only in its technological capabilities, but also in its network effect, said Ran Neuner, co-founder of Crypto Banter, host of CNBC’s Crypto Trader and CEO of OnChain Capital.
Speaking to Kitco News editor-in-chief Michelle Makori, Neuner said that if Ethereum were to be priced with similar network metrics to Bitcoin, the price would have to be several times higher.
“If you compare where the Ethereum network is versus the Bitcoin network, and you say on a like-for-like basis, what should Ethereum trade on? Under Metcalfe’s law, you get a valuation of Ethereum of about $ 6,000. , “he said.
Ethereum is currently trading at $ 2,400, and is therefore “very, very under-priced,” noted Neuner.
However, the similarities between Bitcoin and Ethereum end there.
“I think comparing Bitcoin to Ethereum is a really bad thing … that’s like comparing gold to Amazon,” he said. “The only thing is that they are both cryptocurrencies and they are both used on blockchain, but they are two completely different things. Bitcoin is a store of value, it is a transfer of value between you and me. That’s what Bitcoin does and it does it very well. However, Ethereum is a world supercomputer that is decentralized. ”
Regarding Dogecoin, Neuner said the crypto that skyrocketed more than 500% in less than three days in mid-April, has no intrinsic value and is purely a speculation game.
“Dogecoin is a meme coin at best. It’s a useless piece of technology that isn’t very secure. It’s designed like a joke, it’s designed like a meme. They called it small change, ”he said. “It was deliberately poorly designed.”
In addition, unlike Bitcoin, there is no finite amount of Dogecoin because more can be made of it. Neuner compared this feature to the US dollar, another currency that has no fixed limit on supply, which he also referred to as a “meme coin.”
Dogecoin’s popularity was driven in part by TikTokers, who see it as a kind of “freedom coin,” Neuner said.
What happens now? One of two things: one, it crashes, all these TikTokers get wiped out, and it’s just another one of these pump and dump schemes. Dogecoin has done [this] several times since 2017, it goes up, and then it goes down somehow. Or two, the TikTok generation is actually using this as their cryptocurrency, ”he said.
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