“Bitcoin (BTC) is gold, Ethereum (ETH) is the Apple store,” says a report from Arca – Money Times

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Arca, North American manager crypto assetspublished this Monday (19) his report on crypto market denominated “That’s our 2 Satoshis” (These are our 2 satoshis, loosely translated).

In the document, Jeff Dorman, CIO of Arca, discusses allusions and comparisons in the crypto market. Dorman makes some argumentative allusions to target the traditional market.

“Whenever a journalist asks me how to trade cryptocurrency, I immediately answer: ‘How do you trade ETFs? Are ETFs going up or down today?’ Of course, this is an unanswered question.

Dorman goes on to say that ETFs are simply an umbrella that contains many types of assets, often completely unrelated except for the umbrella under which they reside.

“Also, digital assets based on blockchain they are simply an umbrella under which various assets now sit,” he says.

As they say, The Merge further separated Ethereum from Bitcoinand thanks to the update, it may now be easier to convey the message that most other digital assets are very different from each other.

The CIO used some analogies for this:

Dorman says that, like gold, Bitcoin has a fixed supply in the world, but an inflationary schedule of circulating supply as it is taken out of the ground.

“It has no intrinsic value, but it has solid properties, so it becomes a store of value. You can spend it if someone is willing to receive it, but it mostly just exists to exist at a conversion rate back to other spendable currencies.”

While there are some Bitcoin copycat tokens, the majority is Bitcoin itself, he says.

  • Ethereum is Apple’s app store

The App Store, an application store, opened in July 2008 with 552 applications. Before the release, Apple presented the iOS development plan. It includes a software development kit (SDK) for developers to write applications and announces that it will provide a store through which developers can sell their software.

“Similarly, prior to the launch of the Ethereum smart contract protocol in July 2015, a white paper was published (November 2013) and an ETH token was sold (summer 2014). Like Apple’s app store, blockchain developers got a blueprint for building dApps, and many developers got rich while others failed and burned,” he explains.

Some apps were ready to go (MakerDao was one of Ethereum’s first dApps), while most others were created years later. Today, there are more than 4,000 dApps built on Ethereum.

“Both iOS and Ethereum started as blank slates, dependent on the creativity of external developers to achieve success. At the same time, both Apple stock and the ETH token had speculative value in anticipation of future success.”

Today, Dorman says, both are thriving ecosystems where the growth of apps, users, downloads and transactions generate revenue (Apple) and fees (Ethereum) that accrue to AAPL shareholders, or ETH token holders, respectively.

  • Tier 1 Blockchains (Solana, Fantom, Avalanche) are Android, Microsoft, Ubuntu, etc.

The host’s CIO comments that the success of Ethereum has created competitors, just as the success of Apple’s iOS has brought competitors like Android. Some of iOS’s competitors have begun to expand aggressively, others have different target audiences, and others have collapsed and gone bankrupt.

“Also, some of ETH’s competitors are finding the right product-market fit (like Solana with NFT). These blockchains that are starting to have real success are attracting developers who are building dApps, and some dApps are now offered on multiple blockchains, just as most apps are offered on iOS and Android,” he says.

The iOS and Android app stores feature gaming, health, banking, media, and e-commerce apps. Offering Ethereum and Solana protocols decentralized applications (dApps) games (NFTs)healthcare, banking (DeFi/stablecoin) and e-commerce (Web3).

  • Binance is JP Morgan Chase

Binance Coin (BNB) is the 5th largest token by market capitalization, behind Ethereum and Bitcoin. Binance is a crypto exchange used for digital asset trading, lending, lending and asset management and other services.

“Brozova generates an estimated revenue of $20-30 billion each year (JPM generated revenue of $128 billion last year). The BNB token is an ephemeral token; provides utility in the form of benefits/rewards for members (eg reduced fees if you own BNB and trade on the platform Binance) and a financial benefit in the form of profit sharing (Binance burns BNB tokens, similar to a stock buyback, using profits generated by Binance).”

JPM has a market value of $343 billion; Binance has an estimated enterprise value of $250 billion, which includes Binance equity (estimated at ~$200 billion) and BNB token ($43 billion).

“Essentially, the BNB token acts as a form of quasi-equity and rewards card for members, such as a Chase credit card holder or preferred banking partner. Binance doesn’t look like Bitcoin or Ethereum any more than JP Morgan looks like Gold or Apple. Note that this analogy would make FTX similar to Goldman Sachs,” comments the CIO.

Tether (USDT) and USDC are the 3rd and 4th largest tokens by market capitalization ($67 billion and $50 billion, respectively).

“Both are intermediaries for money and credit in the banking system, with USDC considered the most regulated bank money (like the Fedwire Funds Service), while USDT is used in the same way but is considered a more global, less regulated version. (like Eurodollars)”, he explains.

Both are used solely as a medium of exchange and are owned by price stability, not price growth.

Dorman claims that Helium (HNT) is part of a telecommunications infrastructure like American Tower or SBA Communications, Chainlink (LINK) is a computer infrastructure like Intel or Advanced Micro Devices, Chiliz (CHZ) is a sports and entertainment company like DraftKings.

“And The Sandbox (SAND) is a gaming platform like Take Two or Activision Blizzard. The point is that, for the first time, Ethereum Merge makes the average person talking about a digital asset think and talk about the uniqueness of that asset. And once you start, you realize how much depth this market offers.”

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