Popular cryptocurrency analyst Benjamin Cowen said he is studying Ethereum (ETH) to determine if the leading smart contract platform has what it takes to be a store of value.
In a new interview with crypto channel InvestAnswers, Cowen highlighted that while many investors see gold as a store of value, the precious metal has remained almost stable over the past decade.
“What do people mean by store of value? Do you want it to stay the same price and keep the value, or increase in value? I think there’s a disconnect there… That’s one of the things we see about gold on Twitter. There are a lot of gold investors who like it because it’s theoretically a store of value, but the problem is that it hasn’t done anything in ten years, so even though the price is the same as it was 10 years ago, it’s not as valuable. Because of inflation.”
Crypto analyst argues that Ethereum is actually a better store of value than gold, as the value of ETH has increased by nearly 50x over the past 12 months.
“I think Ethereum will rise over time like Bitcoin, and I think the definition of ‘store of value’ is valid as long as you have the right time horizon. It increases monotonically. I think it makes sense if you give it the flexibility to drop the occasional drop. You really can’t expect something to go up 48x from $100 to $4,800 a year and not have some sort of pullback and long consolidation phase. As long as you allow it, I think you can deliver the same narrative.”
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