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Crypto Analyst Willy Woo Explains 'Real Value' of Bitcoin (BTC), Calls Fiat Money Experiment

News
Sun, 06/14/2020 - 15:21
Vladislav Sopov
Typically, cryptocurrencies and Bitcoin (BTC) are criticized for having zero intrinsic value. Top analyst Willy Woo showed some cases where this approach doesn't work.
Crypto Analyst Willy Woo Explains 'Real Value' of Bitcoin (BTC), Calls Fiat Money Experiment
Cover image via www.youtube.com
Contents

Top-level analyst and hedge fund manager Willy Woo, who is also known as a venture investor and advisor, explained his concept of 'real-world value' as backed by the Bitcoin (BTC) network. He also indicated why fiat money represented a sort of long-term experiment.

Still an Experiment

Mr. Woo announced that modern fiat money system is an experiment, although it has lasted four times longer than that of Bitcoin (BTC). However, the very essence of both assets looks similar in this regard.

Willy Woo: Fiat Money system is an experiment
Image via Twitter

It looks like Mr. Woo is referring to the 'Nixon shock' as the birth of a fiat money system in its modern age. In 1971, the President Richard Nixon of the United States decided to start the unilateral cancellation of direct international convertibility of the U.S. Dollar to gold.

So, Mr. Woo would rather refer to it as 'fiat with no golden equivalent' versus fiat money by default. 

The 'experimental' nature of most popular assets around the world may be result in a lack of understanding its internal mechanisms. Thus, the traditional money system also keeps its secrets just like its blockchain-based competitors.

Energy and Amortization Bring 'Real World Value'

Additionally, Mr. Woo highlighted that the experiments with a modern fiat system are not unique at all since history remembers similar instruments.

What is unique is the level of dependence of global economics on the fiat system. Therefore, it becomes incredibly vulnerable at times of hyperinflation.

Opponents of Mr. Woo claimed that neither Bitcoin (BTC) nor fiat money have any 'real world value' as they are attributed only to precious metals, i.e. Gold and Silver.

The analyst indicated at least two cases when assumptions about Bitcoin's zero value were false:

Every BTC created is a digitisation of real world value without need for a central trusted entity (that is energy and amortisation of mining hardware).

About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

Ethereum (ETH) Market Cap May Become Equal to Bitcoin's (BTC): ConsenSys Director

News
Mon, 07/13/2020 - 14:38
Vladislav Sopov
John Lilic, managing director at ConsenSys decentralized development studio, has shared an over-bullish prediction for Ethereum (ETH) progress
Ethereum (ETH) Market Cap May Become Equal to Bitcoin's (BTC): ConsenSys Director
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Contents

John Lilic leads international business development in the ConsenSys leading blockchain development studio. He is also an expert in energy markets and cryptocurrency segments. He tracked the progress of Bitcoin's (BTC) and Ethereum's (ETH) market capitalization statistics, coming up with an extravagant prediction.

Bitcoin (BTC) should get ready for parity

Mr. Lilic outlined that Ethereum (ETH) is showcasing much healthier dynamics than its competitor is. For instance, the flagship cryptocurrency still surpasses Ethereum (ETH) by 6.3x in terms of market capitalization, while simultaneously collecting 20% fewer fees than Ethereum (ETH).

John Lilic of ConSensys foresees parity of Bitcoin (BTC) and Ethereum (ETH) market capitalizations
Image via Twitter

Also, Ethereum (ETH) is demonstrating much more impressive price dynamics this year. It gained almost 37% against Bitcoin (BTC) in 2020. That said, Ethereum (ETH) looks severely undervalued to the top manager of ConsenSys.

However, Ether is on the path to eliminating this discrepancy. Eventually, the top two cryptocurrencies may reach market capitalization parity, concludes Mr. Lilic.

Related Bitcoin (BTC) and Ethereum Have (ETH) Recovered From Black Thursday, Who Else? Coinmetrics Explains
Related
Bitcoin (BTC) and Ethereum Have (ETH) Recovered From Black Thursday, Who Else? Coinmetrics Explains

As covered by U.Today Crypto News recently, Coinmetrics on-chain research team called Bitcoin (BTC) and Ethereum (ETH) the unique crypto behemoths that have managed to recover from Black Thursday.

Bitcoin (BTC) is losing supremacy in "fee race"

Should Ethereum (ETH) overcome its undervaluation, its price may be over $1,550 based on liquid supply and current Bitcoin (BTC) market capitalization.

Recently, it was unveiled that Ethereum (ETH) blockchain continues to surpass Bitcoin (BTC) in terms of network fees for more than 30 days in a row. Ethereum (ETH) is seeing this advantage for the first time in its history.

As U.Today Crypto News reported previously, ex-Messari analyst and angel investor Qiao Wang identifies two main catalysts of Ethereum's (ETH) price run in the mid-term perspective.

Related Ethereum (ETH) Price Two Bullish Signals, According to Investor Qiao Wang
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Ethereum (ETH) Price Two Bullish Signals, According to Investor Qiao Wang

According to Wang, the upcoming rally may be fueled by a long-awaited transition to Proof of Stake and fixing the monetary policy of Ether token.

About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)