According to crypto hedge fund analyst Su Zhu, the dominance of Bitcoin and Ethereum is not an immutable law. Crypto veteran Su Zhu says BTC and ETH are both good investments, but that doesn’t guarantee they will continue to dominate crypto.
BTC and ETH dominance is not destiny
The CEO of Three Arrows Capital explains why he sees the possibility of other digital assets surpassing BTC and ETH. Manager says:
Bitcoin and Ether are probably the most stable coins in crypto. They sort of have the best distributions and the most decentralization, but when it comes to adding new users to the network, it actually doesn’t have as much network impact as you might think. For the same reasons that Ether won in Bitcoin last year, other networks are now winning in Ether.
Drawing attention to other layer 2 (L2) solutions, the CEO continues:
New users will use or will use other layer 2 solutions (L2s), but it’s actually going a lot towards the Bitcoin 2017 roadmap and I think the challenge here is that users won’t necessarily wait for it.
Layer 2 projects, developed to solve the bottleneck problems that may occur in Layer 1 networks, are growing day by day. Although there are various pros and cons, in general, these projects now have a larger audience. Some of the most valuable Layer 2 cryptocurrency projects are given in the table above.
According to Zhu, while Bitcoin and Ethereum are good coins, it is not certain whether Ethereum is some kind of master over other chains. It is a misconception and illogical that Zhu ETH and BTC think that all people are doomed to them. Zhu: “This is not unchangeable. “I don’t think Ethereum as a network is actually that useful for most people because… they don’t need the decentralization that Ether is trying to say it supports,” he says.