If Any Crypto Will Reach $1 Trillion, It’s Ethereum, Not Bitcoin: Dragonfly Capital

Jake Simmons

2 years ago

3 mins read

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Based on the year-to-date performance and their drawdown from their all-time highs (ATHs), Bitcoin (BTC) and Ethereum (ETH) have performed very similarly. While BTC has risen by 25.5% since the beginning of the year, ETH has climbed by about 27%. From its ATH, Bitcoin has declined by 69.9%, while Ether is down by 68.9%.

Despite this very comparable performance, the debate persists that Ethereum may replace (“flip”) Bitcoin as the largest cryptocurrency by market cap within the next few years or in the next bull cycle.

One supporter of this theory is Dragonfly Capital’s Haseeb Qureshi. In a recent interview, the investment firm’s managing partner said that if any cryptocurrency is ever going to reach $1 trillion, it will be Ethereum.

His reasoning? Institutional investors who need to align buying with their Environmental, Social, and Governance (ESG) agenda:

You need institutional buyers to be willing to buy this thing in size and Ethereum is really the only game in town if you are an institutional buyer.

Furthermore, the expert expressed that it is becoming increasingly difficult for institutions to justify Bitcoin as an investment.

“I see it a lot because we work a lot with big institutions […]. It’s explicitly something that gets more and more of a concern for them. They want to invest in crypto, but it has to be compliant with their ESG mandate,” Qureshi said.

2. Ethereum is superior to #Bitcoin in the eyes of institutions, as it’s more ESG friendly.

“If you want a trillion dollar coin, you’re not going to get there off the back of retail.”

“Ethereum is really the only game in town if you want institutional buyers.” pic.twitter.com/f2H2gg224T

— Miles Deutscher (@milesdeutscher) January 18, 2023

Another argument made by proponents of the theory is also that Ethereum is predominantly OFAC (US Office of Foreign Assets Control) compliant, which could make it easier for institutions to enter the market.

On the other hand, Bitcoin supporters are likely to counter that the mining industry is one of the most sustainable industries of all. In its latest report, the Bitcoin Mining Council found that the energy mix in Bitcoin mining is now 58.9% sustainable.

Furthermore, estimates suggest that Bitcoin mining can reduce global emissions by up to 8% by 2030, simply by converting the world’s wasted and dangerous methane emissions into emissions that are 80 times less harmful.

Here’s What Ethereum / Bitcoin Technical Analysis Says

A look at the Ethereum / Bitcoin 4-hour chart shows that ETH currently remains in a downtrend compared to BTC. ETH saw a spike above and out of the pennant for the ETH/BTC ratio, followed by a retrace back to support as Bitcoin broke out from $18,000 to $21,000 in a matter of days, as explained by the founder of LedgArt via Twitter.

According to the analyst, these types of fake-out wicks are breaking out to the downside. He argued: “Still expecting this level to break lower over the next several weeks as BTC continues to strengthen, absorbing liquidity from alts similar to what happened in the 2019 bear market rally,” and shared the chart below.

BTC is currently changing hands at $18,798, while ETH is sitting just above the $1,500 support level at $1,528.

Featured image from Kanchanara / Unsplash, Chart from Twitter/TradingView.com

Jake Simmons

Jake Simmons, a dedicated crypto journalist, has been passionate about Bitcoin since 2016 when he first learned about it. Through his extensive work with NewsBTC.com and Bitcoinist.com, Jake has become a trusted voice in the crypto community, guiding newcomers and seasoned enthusiasts alike towards a deeper understanding of this dynamic field.

His mission is simple yet profound: to demystify Bitcoin and cryptocurrencies and make them accessible to everyone.
With a professional career in the Bitcoin and crypto scene that began right after graduating with a degree in Information Systems in 2017, Jake has immersed himself in the industry. Jake joined the NewsBTC Group in late 2022. His educational background provides him with the technical prowess and analytical skills necessary to dissect complex topics and present them in an understandable format. Whether you are a casual reader curious about Bitcoin or an investor seeking to navigate the latest market trends, Jake’s insights offer valuable perspectives that bridge the gap between complex technology and everyday usage.

Jake is not just a reporter on technological trends; he is a firm believer in the transformative potential of Bitcoin over traditional fiat currencies. To him, the current financial system is on the brink of chaos, propelled by unchecked government actions and flawed Keynesian economic policies. Drawing from the principles of the Austrian school of economics, Jake views Bitcoin not merely as a digital asset but as a crucial step towards rectifying a failing monetary system. His libertarian views reinforce his stance that just as the church was separated from the state, so too should money be freed from governmental control.

For Jake, Bitcoin represents more than just an investment; it's a peaceful revolution. He envisions a future where Bitcoin fosters a sustainable and responsible financial framework for generations to come. His advocacy is not about opposition but about evolution, about laying the groundwork for a system that prioritizes transparency and equity over secrecy and inequality.

As a journalist, Jake’s articles are crafted with the precision of a scholar and the passion of a true believer. He provides not only news but also thoughtful analysis that connects the dots between daily developments and larger economic theories. His work is a beacon for those lost in the technical jargon often associated with crypto discussions, illuminating the practical implications and benefits of these technologies.

In summary, Jake Simmons is not just reporting on a revolution; he wants to be part of it, fully committed to enhancing public understanding and adoption of Bitcoin and cryptocurrencies. His work is more than just a collection of articles; it’s a resource, a guide, and a companion for anyone ready to explore the potential of this digital frontier. Whether you are taking your first steps into crypto or are a veteran looking to stay on top of the latest trends, Jake’s insights provide clarity and foresight in an often unpredictable industry. Join him on this journey to reshape the world of finance, one post at a time.

You can engage with his latest takes on Twitter: @realJakeSimmons.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.