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Ether is like “digital tungsten”

June 13, 2020

According to the managers of a cryptocurrency hedge fund, Ether (ETH) is not an attractive asset for investors Not a good store of value.

Steven McClurg and Leah Wald, managers of the Exponential Investments Fund, said this Ether is an extremely risky commodity and not a safe investment. so many members of the crypto community would believe.

BTC is like gold, while ETH is like tungsten

In contrast, the two compared ETH with “digital tungsten” Bitcoin (BTC), which is considered digital gold. In other words, There is no certainty that Ether’s purchasing power will be preserved in the future:

“Ethereum doesn’t have any of Bitcoin’s most important value propositions: predictable shortages.”

Ether is like “digital tungsten”Ether is like “digital tungsten”

The report states that Monetary policy regarding ether is not constant. and this makes the token supply vulnerable to inflation and is not suitable to present an offer of value:

“Given Ether’s inability to properly function as a store of value, it remains an extremely risky speculative tool.

Ether traders want to make profits from their short-term price changes. They pursue high returns with the same high risks. In his eyes, there is only the vision of digital bars. However, this vision is shaped without evidence: like ether, it’s just speculation. “”

Many mutual funds continue to rely on ether

In May, PwC and Elwood Asset Management Services released a report that crypto funds managed assets doubled in 2019 compared to the previous year. reach a value of $ 2 billion: 67% of the portfolio contains investments in ether.

McClurg and Wald, however, argue that “ether is both a bad store of value and a bad cryptocurrency to speculate on.”

Grayscale Investments also believes that Ether is an excellent investment: The company bought ETH for $ 110 million this year. Ray Sharif-Askary, Director of Investor Relations, also announced that around 38% of Grayscale’s customers have invested in more than one crypto asset.

“It is encouraging for investors […] Diversify your wallet with other digital currencies, just like with any other traditional asset class. “