Popular crypto analyst Benjamin Cowen has tackled the debate over whether Ethereum ($ETH) constitutes a store of value asset.
Speaking in a recent interview with InvestAnswers, Cowen argued that Ethereum represents a better store of value asset than gold, which has traditionally been prized for its ability to maintain its price and grow in the face of inflation and other economic factors.
Cowen noted that gold and other precious metals have remained virtually flat over the last decade, failing to appreciate even a fraction of what the red-hot crypto market and traditional stock market have achieved.
As reported by The Daily Hodl, Cowen said,
There’s a lot of gold investors that like it because theoretically, it’s a store of value, but the problem is it hasn’t done anything in a decade, so while the price is the same that it was 10 years ago, it’s not worth as much because of inflation.
Cowen explained that many investors were really interested in a store of value asset that was able to increase in value over time. He pointed to Ethereum’s massive price growth over the past two years, particularly in comparison to gold. He argued that Ethereum serves as a better medium for wealth storage, similar to Bitcoin, as the cryptoasset’s long-term trajectory is pointing up.
I do think Ethereum will trend up with time like Bitcoin, and I think the definition of ‘store of value’ applies as long as you have a right time horizon and as long as your definition of store value isn’t that always has to monotonically increase.
Cowen said investors would have to be flexible enough to weather “occasional drops” in price, noting that the pullbacks and consolidations also coincided with crypto’s ability to increase by “48x in a year.”
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