The value of Ethereum lies not only in its technological capabilities, but also in its networking effect, said Ran Neuner, co-founder of Crypto Banter, host of CNBC’s Crypto Trader and CEO of OnChain Capital.
Speaking to Michelle Makori, editor-in-chief for Kitco News, Neuner said that if Ethereum should have prices using comparable network values like Bitcoin, the price should be several times higher.
“If you compare where the Ethereum network is to the Bitcoin network and say on a similar basis, what should Ethereum trade on? Get a valuation, according to the Metcalfe Law, of Ethereum at about $ 6,000, ”he said.
Ethereum currently trades $ 2,400 and is therefore “very, very undervalued,” Neuner noted.
However, the similarities between Bitcoin and Ethereum end here.
“I think comparing Bitcoin to Ethereum is a very bad thing … it’s like comparing gold to Amazon,” he said. “The only thing is that both are cryptocurrencies and are both used on the blockchain, but they are two completely different things. Bitcoin is a deposit of value, it is a transfer of value between me and you. That’s what Bitcoin does and it does it very well. However, Ethereum is a decentralized global supercomputer. ”
Regarding Dogecoin, Neuner said that the crypto that grew by more than 500% in less than three days in mid-April has no intrinsic value and is a pure piece of speculation.
“Dogecoin is best a meme coin. It is a useless technology that is not very safe. It was designed as a joke, it was designed as a meme. They called it a small currency, “he said. “It was designed badly.”
In addition, unlike Bitcoin, there is no finite amount of Dogecoin because more can be created. Neuner compared this feature to the US dollar, another currency that does not have a maximum supply limit, which he also referred to as a “meme currency”.
The popularity of Dogecoin has been increased in part by TikTokers, which considers it a kind of “currency of freedom”, according to Neuner.
“What happens next?” One of two things: one, it crashes, all these TikToker are deleted and it’s just another pumping and unloading system. Dogecoin did [this] several times since 2017, it rises and then, somehow, it goes down. Or two, the TikTok generation actually adopts this as a cryptocurrency, ”he said.
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