According to Exponential Investments crypto fund managers, Ether is digital tungsten to Bitcoin’s gold.
Two crypto fund managers say Ether (ETH) is neither a worthy asset for investors nor a great store of value.
According to a report posted June 11 by Steven McClurg and Leah Wald of Exponential Investments, Ether is a “risk-on asset” and not a reliable investment as many in the crypto community believe.
The crypto fund managers liken ETH to “digital tungsten” rather than the digital gold which Bitcoin (BTC) has come to be known as in some circles, in that the token is not stable enough against future purchasing power:
“Ethereum does not have one of the greatest value propositions of Bitcoin: predictable scarcity. Instead, the antithesis is the reality.”
The report states that the monetary policy surrounding Ether issuance is inconsistent, making the supply of the token vulnerable to inflation and unsuitable for a store of value:
“Given Ether’s inability to adequately serve as a store of value, it remains a highly risky speculative instrument. Ether traders look to take profit from its subsequent price changes over a short time-horizon. They chase high returns, coupled with high risk. Visions of digital ingots dance before their eyes. However, these visions are formed without evidence. Like Ether, they are pure speculation.”
Many fund managers still choose Ether
Wald’s and McClurg’s remarks come after a PwC report stated crypto hedge funds’ assets under management doubled in 2019 to $2 billion. 67% of those portfolios included investments in Ether.
Yet the pair conclude “Ether is both a poor store of value and a terrible cryptocurrency to speculate on.”
Grayscale Investments doesn’t seem to agree with this assessment. Cointelegraph reported on June 5 that the firm has purchased $110 million in ETH in 2020. Its Ethereum Trust totaled $290 million as of May 19.
The second-largest cryptocurrency by market cap is currently on a bearish trend, with the price dropping 4% from $245 to $236 within 24 hours.
Source: , CoinTelegraph
Articles listed with Cash Tech News as the author are either general information, or may have been imported from another website, to bring our readers a rich media experience that encompasses articles that we find interesting, as well as those curated by others.
The views and opinions expressed here are for informational purposes only, and should not be confused with professional financial advice. These opinions are solely those of the author and do not necessarily reflect the views of CashTechNews.com. Every investment and trade involves risk. You should conduct your own research, and contact your professional financial advisor before making any investment.
Corrections, feedback, and ideas should be submitted through the website contact form.