The chief executive of investment giant ARK Invest is identifying three key reasons why Bitcoin (BTC) will always remain larger than Ethereum (ETH).
In a new interview on The Master Investor podcast, ARK Invest CEO Cathie Wood says that the top crypto asset by market cap fills three roles that the top altcoin cannot.
“Bitcoin serves three roles… Bitcoin is the global monetary system – rules-based, quantity rules to be sure – and that alone is a very big idea. It is also technology, a layer-1 blockchain that has never been hacked. The other blockchains cannot say that.
And so that’s why the monetary system is based on it. And it is the first of its kind in a new asset class. We wrote our first white paper on that in 2016. So a new asset class – it’s got three very important attributes to it.”
According to Wood, competition between layer-2 blockchains will push value into the top crypto asset by market cap.
“I do think uh that Ethereum is playing a very important role and therefore Ether is the native currency in the DeFi ecosystem. A lot of the fees are going to the layer 2s. Robinhood, for example, announced that it was going to start its own layer 2, like Coinbase has…
They get a disproportionate amount of the fees. Now the question is, are there going to be so many layer twos out there that they’re going to start competing against one another and confer more importance to the layer-1.”
BTC is trading for $109,520 at time of writing, while ETH is valued at $4,000.
Follow us on X, Facebook and Telegram
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
