SoFi CEO Mike Cagney recently backed Ethereum over Bitcoin as the cryptocurrency of the future. According to Cagney, the nature of Bitcoin, its inextricable link to the dollar and its inherent volatility make it virtually impossible to use as a commercial vehicle of value. In contrast, Ethereum provides an infrastructure that promotes widespread and varied usage, while at the same time maintaining equal levels of security and protection. At a recent conference in Aspen CO, Cagney said:
“If the dollar didn’t exist, and all we had was Bitcoin, we would be fine. But the fact that it trades [in dollar terms] and its value fluctuates so significantly makes it nearly impossible…to use as currency. The Blockchain on Ethereum, on the other hand, has absolutely fascinating infrastructure applications.”
The contrast between the two systems is not unique. Many have cited the potential for a ‘flippening,’ or a scenario where Bitcoin is overtaken by Ethereum in market share and valuation. With the recent collapse of Ethereum prices, however, this does not look to be a likely event in the near future. Regardless, the existence of such alternative cryptocurrencies does put pressure on the Bitcoin marketplace.