BitMEX co-founder Arthur Hayes says Ethereum (ETH) cannot compete with Bitcoin (BTC) as digital gold, as the top-of-the-line smart contract platform was not designed to be a form of money.
In a new interview with Laura Sheen on the Unchained podcast, Hayes Says That Ethereum solves a different problem than Bitcoin.
“I think Ethereum is trying to solve a different problem. It’s not trying to be money. I think the core developers, or whatever the political will of Ethereum is. [is]They showed this very clearly to us in 2016 when they rescued everyone after the DAO by making a hard fork.”
Hayes says the 2017 Ethereum hard fork that resulted in the creation of Ethereum Classic (ETC) lends his view on ETH’s purpose.
The crypto veteran says that the relatively low number of users of Ethereum Classic compared to regular Ethereum is evidence that the majority of the ecosystem is interested in something else besides the sound money that ETC is releasing for it.
“ETC, if you were to say, is real Ethereum money, [but] Nobody uses it. This should tell you everything you need to know about whether or not Ethereum wants to be money, and the inflation rate may not be the thing that shows everyone that Ethereum is not money.
There may be some other concessions they have to make because the goal of “we want to be this decentralized computer for everyone in the world” goes against immutable money. I don’t know what this is, but I think we have an individual sample set of what they did when faced with this kind of selection.
They have chosen the “Let’s be the power of a decentralized computer” side. I think they still have that vision, which is why I don’t think Ethereum is digital gold or crypto money. “
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