According to BitMEX chair Tom Lee, Ethereum may eventually exceed Bitcoin’s market share in a manner akin to how US equities surpassed gold 54 years ago after the US abandoned the gold standard.
“Ethereum could flip Bitcoin similar to how Wall Street and equities flipped gold post 71,” Lee stated during an interview with ARK Invest CEO Cathie Wood on Thursday.
Currently, Bitcoin’s (BTC) market capitalization is around 4.6 times that of Ethereum’s, roughly $2.17 trillion compared to $476.33 billion, as per CoinMarketCap.
Lee cites the “Nixon Shock” to bolster Ethereum’s stance
Lee, who oversees BitMine’s Ethereum accumulation strategy, suggested that Ethereum’s ascension could mimic the rise of the US dollar’s dominance post-1971, following US President Richard Nixon’s decision to make the dollar “fully synthetic” with no gold backing.
He noted that during that period, “The immediate beneficiary was the demand and market ownership of gold.”
However, he pointed out, “Wall Street developed products that elevated the dollar’s status, resulting in a current market cap of equities at 40 trillion compared to 2 trillion for gold.”
“By the end of that era, dollar dominance increased from 27% in GDP terms to 57% of central bank reserves, and 80% of financial transactions and quotes,” he remarked, adding:
“Dollar dominance is going to be the opportunity for Ethereum,” stating this would emerge as “everything becomes…tokenized.”
The flippening has been a long-standing topic
“As we transition dollars to the blockchain, including stablecoins, we’ll also move stocks and real estate,” he explained.
Yet, he stressed that this concept is still a “working theory” and that he remains bullish on Bitcoin.
The “flippening,” which posits that Ethereum will one day exceed Bitcoin’s market cap, has been debated for years but has recently drawn renewed interest.
In August, ConsenSys founder Joseph Lubin claimed that Ethereum could “surge by 100 times and flip Bitcoin as a “monetary base.”
Related: Ether dropped 8%, but traders assert ETH price breakout to $10K is ‘loading’
This statement coincided with Bitcoin proponent and Jan3 founder Samson Mow’s assertion that Ethereum investors would revert to Bitcoin once ETH prices reached a sufficient level.
Previously, in August 2021, DeVere Group CEO Nigel Green remarked, “Ethereum’s rise to the pinnacle of the cryptoverse appears unstoppable.”
“Ethereum is already years ahead of Bitcoin in every aspect but price and recognition,” Green stated.
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