Ethereum’s value lies not only in its technological capabilities, but also in its networking capabilities, said Ran Neuner, co-founder of Crypto Banter, host of CNBC’s Crypto Trader and CEO of OnChain Capital.
Neuner told Michelle Makori, editor-in-chief of Kitco News, that the price would be several times higher if Ethereum were priced using Bitcoin using comparable network statistics.
‘If you compare where the Ethereum network is versus the Bitcoin network, and you say on a similar basis, what should Ethereum trade on? “According to Metcalfe’s law, you get a valuation of about 6,000 dollars from Ethereum,” he said.
Ethereum is currently trading at $ 2,400, and is therefore ‘very, very cheap’, Neuner noted.
However, the similarities between Bitcoin and Ethereum end there.
“I think it’s very bad to compare Bitcoin to Ethereum. It’s like comparing gold to Amazon,” he said. ‘The only thing is that both are cryptocurrencies and that they are both used on blockchain, but these are two completely different things. Bitcoin is a value store, it is a value transfer between me and you. This is what Bitcoin does and it does it really well. However, Ethereum is a decentralized world supercomputer. ‘
On Dogecoin, Neuner said that the crypto that shot up more than 500% in less than three days in mid-April has no intrinsic value and that it is pure speculation.
‘Dogecoin is at best a meme coin. This is a useless piece of technology that is not very secure. It’s designed as a joke, it’s designed as a meme. “They called it a change,” he said. “It was intentionally badly designed.”
In addition, there is not a limited amount of Dogecoin unlike Bitcoin because more of it can be created. Neuner compares this feature to the US dollar, another currency that does not have a hard supply, which he also called a ‘meme coin’.
The popularity of Dogecoin has been partially increased by TikTokers, which according to Neuner is a kind of ‘freedom coin’.
“What happens next? One of two things: one, it’s crashing, all these TikTokers are being wiped out, and it’s just another one of these pumping and dumping schemes. Dogecoin did [this] a few times since 2017 it goes up, and then it goes down somehow. Or two: the TikTok generation actually adopts it as their crypto-currency, ”he said.
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