The Bitcoin vs. Ethereum debate has been going on for years and getting stronger as the market grows. Pitting the two biggest cryptocurrencies against each other was one of the greatest entertainments on the market. However, not everyone in the school of thought shares that they are in competition.
Cathy Wood, CEO of ARK Invest, is known in the crypto space for giving an outlook on Bitcoin, but Ethereum has been largely left out of the conversation. Wood is mostly known in the space for its bitcoin at the $500,000 forecast, which has stood by her at various points.
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The CEO has always expressed her belief that Bitcoin remains highly undervalued and has a lot to do in the years to come. However, Wood notes that the No. 1 altcoin Ethereum is undervalued than Bitcoin.
Ethereum is still undervalued
Wood was at CNBC’s Squawk Box to talk about the cryptocurrency market. In the presentation, the CEO expressed that Ethereum remains undervalued. I put this into perspective using Bitcoin, the largest cryptocurrency on the market, which I believe is still undervalued. Wood explained that although Bitcoin is undervalued, Ethereum is still undervalued compared to it.
One of the main reasons behind investing in ethereum was the benefit of digital assets. Decentralized Finance (DeFi) has seen massive success despite being only a year old and Ethereum hosting the majority of DeFi activity. Wood reiterated the fact that DeFi has been the driving force behind the success of digital assets.
“The fact that this is where, or the protocol, for DeFi and NFTs suggests to us is that they are undervalued even than Bitcoin, just because there are new worlds emerging on top of them.”
ETH price recoers above $4,000 | Source: ETHUSD on TradingView.com
According to the CEO, Ethereum is still in its infancy and has a long way to go, while Bitcoin was actually created to be a monetary system. She added that organizations will move more to DeFi and NFTs, which will “accelerate” their growth.
Bitcoin still bullish
Wood has not failed to reiterate her stance on bitcoin. The CEO noted that institutional investors are moving into digital assets. Bitcoin has become impossible to ignore and Wood explained that institutions should explore it. “Institutional managers need to look at new asset classes that are developing that have low correlation,” the CEO said. “This is the Holy Grail in terms of asset allocation.”
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There is no doubt that Bitcoin has been doing quite well during more than a decade of its existence. However, Cathy Wood expects further growth for the asset. Last month, the CEO stated that as institutions move more to bitcoin, it could rise to $500,000 in the next five years.
Featured image from Crypto Adventure, chart from TradingView.com