ETH can also compete with BTC as a store of value, Buterin suggested

In the interview for the podcast The Stakeborg Talks, the main face of the cryptocurrency ETH Vitalik Buterin commented on several interesting topics, including the NFT, DAO – or decentralized autonomous organizations, but also cryptocurrency ETH.

During the podcast, Buterin was asked, among other things, whether it was realistic for ETH to overtake BTC not only in price (market capitalization), but also in the “thesis” that it is an ideal digital store of value and thus a kind of hedge against inflation. Buterin replied that he “can” and then added:

“I think the big difference between ETH and BTC is that BTC is a platform whose value comes from the value of its currency, because ETH is a platform whose value is determined by the value of its ecosystem. “

ETH as ultra-sound money?

The idea that ETH could become a kind of ultra-sound money was helped by an update to the protocol called EIP 1559 within a crawfish hard fork called London. This update brought the burning of ETH coins, which is financed by transaction fees. As a result, ETH inflation has fallen sharply and it is even possible that ETH will be deflationary in the future (more ETH coins will be burned than will be generated). As a result, it is closer to BTC, although it has clearly defined inflation (and its decline), while for ETH, inflation may still change due to several factors.

The fact that, thanks to EIP 1559, ETH is getting closer to the designation “store of value” and its founder agrees. “Especially after EIP 1559, when fees are burning, it really becomes a reality in a more direct economic sense,” he added.

There is great potential in DAO

Vitalik Buterin also commented on the DAO, ie decentralized autonomous organizations which, according to some cryptocurrency analysts, may become another sector of cryptocurrencies after DeFi and NFT, which will gain enormous popularity.

Buterin said that such organizations, which can function through quadratic voting and funding, have great potential. “I think DAO will definitely become more and more important over time. As for what is still missing in the DAO space, I don’t think that currently (at DAO) there is one big thing, but so far many small things… When does DAO first decide to make a strategic move, or when two DAO organizations decide to merge ? DAO makes big decisions… I think that’s something we’ll see soon… “

The NFT brought a different type of people to ETH

The topic of conversation was also the increasingly popular NFT tokens, which addressed a different category of people. He remarked to them“I think the NFTs are culturally interesting because they bring to ETH people who have completely different thinking, such as people who are interested in DeFi or traditional regular cryptocurrencies.