Circle CEO Says Bitcoin and Ethereum Are Likely Oversold and Have a Bright Future
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Circle CEO and co-founder Jeremy Allaire argued that Bitcoin BTC, 5.43% and Ethereum ETH, 4.11% have a bright future in a recent appearance on CNBC’s Squawk Box.
Allaire says that metrics that compare the usage of blockchain networks with the value of their native assets suggest both Bitcoin, and particularly Ethereum, are oversold
For readers interested in some of these metrics, an analysis of Bitcoin and Ethereum fundamentals that was recently prepared by Placeholder VC partner Chris Burniske is definitely worth a read.
Jeremy Allaire expects the Ethereum network to facilitate a variety of useful services such as lending and issuance of securities. Crypto assets such as the USD Coin USDC, 7.15%, a dollar-pegged ERC20 standard token on the Ethereum network, will help facilitate these services, according to Allaire.
Allaire was hesitant to make a direct prediction, but said he believes that in three years, Bitcoin will be worth much more than it is today.
“I don’t make significant price predictions, but think it’s certainly going to be worth a great deal more than it is today.”
When asked about his thesis on why he expects Bitcoin to increase in value considerably, Allaire explained:
“I think the key thing with Bitcoin is, it is unique in its security and its scale, and again, this idea that we need a non-sovereign store of value, a scarce non-sovereign store of value that individuals can hold in a protected fashion, that’s attractive all around the world and I think it will increasingly be attractive.”
Interestingly enough, Allaire didn’t mention Bitcoin’s original peer-to-peer cash vision. Bitcoin’s volatility and scalability issues have made it difficult to argue for BTC as a currency suitable for day-to-day use.