The speaker believes that other blockchain chains such as Avalanche, Cardenas, and Solana do not have a bright future as Ethereum, calling them “dogs.” They compare these chains to a bouncy ball, saying that once it bounces, it will not bounce as high again. While they believe that these chains do not have real value, there is a possibility that new narratives may arise and cause a surge in popularity. However, they also note that buying at previous all-time highs may not yield a return.
Are Ethereum’s Competitors Not As Bright As It Is?
There has been a constant debate regarding the future of cryptocurrencies beyond Bitcoin and Ethereum. Some believe that these two cryptocurrencies are unbeatable and their competitors have no bright future. Recently, a video surfaced on YouTube where a person expressed his opinion on this debate.
The Thesis That Other Chains Don’t Have a Bright Future
The person in the video believes that the thesis that all other chains, including Avalanche, Cardenas, and Solana, don’t have a bright future as Ethereum is not true. According to him, they all are dog-like bouncy balls that bounce but not as high as Ethereum.
The Analogy of Bouncing Balls and the Market
He further explained his analogy by saying that if we drop a ball, it bounces based on its properties. Similarly, if we compare the market with a bouncing ball, we can say that Solana may not bounce as high as Ethereum, but it still provides value to its users. However, he believes that if you bought Solana at a high price, it may not reach that price again.
Value and Real Value
The video reframes the argument that the only real value of a cryptocurrency is its ability to go beyond its all-time highs. While the opinion may have some validity, it fails to take into account the changing narrative and the emergence of new Layer 2 solutions in the market.
The Role of L2s and Narrative Cycles
The speaker acknowledges that there might be another narrative cycle claiming to have solved the problems of the last cycle, and these L2s might pop up hard. Thus, instead of only looking at the past performance, we need to consider other factors that determine the value of a cryptocurrency.
In conclusion, the video challenges the notion that only Bitcoin and Ethereum have a bright future, and the other chains are unimportant. Though Ethereum may be a dominant player, it’s crucial to acknowledge the roles of other chains in the market. By measuring the value and keeping up with the narrative cycle, we can better predict the future of cryptocurrencies.