Ethereum Will Outperform Bitcoin As A Transition in Storing Wealth Will Happen Beyond BTC: Pantera Capital CEO
Ether will outperform Bitcoin, said Pantera Capital CEO Dan Morehead at the Reuters Global Markets Forum on Monday.
Still, Morehead sees Bitcoin ending 2021 between $80k and $90k, only to rise above $120k within a year. He said that increased mainstream adoption could see BTC soaring to as high as $700,000 in the next decade.
He also shared that Pantera Capital’s funds have attracted institutional investors who are less “momentum”-oriented than retail investors and see current prices as a buying opportunity.
Although not really a prediction, given that ETH did outperform BTC during the 2017 bull market and again in 2021, Morehead attributed the second-largest cryptocurrency being a more recent token as one of the potential reasons for Ethereum outperforming the leading cryptocurrency.
Co-founded by Vitalik Buterin, Ether was launched in July 2015, while pseudonymous Satoshi Nakamoto created Bitcoin in January 2009.
Besides being the younger one, Morehead also pointed to lower environmental impact, technical upgrades, and potential applications factors likely to help the token rally harder.
Ethereum network is actually the base of the majority of the fast-growing just under $100 billion worth decentralized finance (DeFi) sector and non-fungible tokens (NFT) sector, which has taken crypto mainstream.
The network is also working towards its transition from Proof-of-Work (PoW) to less energy-intensive consensus mechanism Proof-of-Stake (PoS). Migration to ETH 2.0 will reduce its mining energy compared with Bitcoin's large carbon footprint, Morehead said.
On the way to this shift, Ethereum will have a London upgrade this week. This upgrade will activate EIP-1559 that will reduce the supply of ETH by burning the base fee and push its prices upwards.
“You’ll see a transition of people who want to store wealth, doing it in (ether) rather than just bitcoin,” he said.