Druckenmiller: Ethereum is ‘MySpace before Facebook’ while Bitcoin won as ‘Google’


Bitcoin (BTC) is liable to a “flippening” from Ether (ETH), mainstream media claims as some acquainted FUD — worry, uncertainty and doubt —returns to the highlight.

As BTC/USD continues to flag under $40,000, an outdated argument has resurfaced — however main traders are combating again.

Bloomberg: ETH “will likely exceed Bitcoin”

In an article on May 31, Bloomberg cited a number of sources claiming that sooner or later, Ether will overtake Bitcoin as the world’s cryptocurrency of selection.

The largest altcoin “will likely exceed Bitcoin at some point in the future, as Ethereum will be superior when it comes to innovation and developer interest,” Tegan Kline, co-founder of Blockchain agency Edge & Node, instructed the publication.

Another government added that Ethereum has a “better growth story.”

The argument is far from new and has appeared regularly throughout Ethereum’s existence. The Ethereum network’s recent major upgrade has kept its profile afloat, and ETH has outperformed Bitcoin over the past year and formed the backbone of the decentralized finance (DeFi) phenomenon.

ETH/BTC, long on a losing streak, reached its highest exchange rate in three years earlier this month.

ETH has also managed to preserve more of its price gains than Bitcoin in recent days. As Cointelegraph reported, a key moving average remains intact for ETH/USD, while BTC/USD has failed to recapture “lines in the sand.”

ETH/BTC 1-week candle chart (Bitstamp). Source: TradingView

Druckenmiller compares Ethereum to MySpace

For all its impressive performance, however, claiming that Ethereum will replace Bitcoin at the top is nonsensical, many argue — and not only staunch Bitcoin supporters.

In an interview with The Hustle final week, billionaire investor Stanley Druckenmiller turned the newest non-technical determine to forged apart doubts about Bitcoin’s endurance.

“I think BTC has won the store of value game because it’s a brand, it’s been around for 13-14 years and it has a finite supply,” he said.

“Is it going to be gold? I don’t know. It’s sure as hell doing a good imitation of it the last year or two.”

For Druckenmiller, Ethereum is to Bitcoin what MySpace is to Google.

“I’m a little more skeptical of whether it can hold its position. It reminds me a little of MySpace before Facebook,” he continued.

“Or maybe a better analogy is Yahoo before Google came along. Google wasn’t that much faster than Yahoo, but it didn’t need to be. All it needed to be was a little bit faster and the rest is history.”

Others have lengthy identified that technically, Bitcoin and Ethereum have little in widespread. Bitcoin’s finite provide and years of resistance to assaults place it in a distinct league than another cryptocurrency, and evaluating one other one to it is an apples-to-oranges comparability.

“I generally think all the other digital currencies don’t really compete with Bitcoin and are in no way similar to Bitcoin,” Saifedean Ammous, writer of The Bitcoin Standard, famously told the Unchained Podcast in August 2017.

“I think their real competition is, if I’m generous, I’ll say Amazon Web Services and these kinds of platforms.”