Ethereum’s Joseph Lubin explains why ETH could rival Bitcoin and gold - Crypto News
Ethereum co-founder Joseph Lubin has argued that ETH could become an important store of value during rising inflation and economic uncertainty, predicting the cryptocurrency will gain more uses as financial services move onto blockchain networks.
In a Wednesday post on X, Lubin warned that national currencies and other assets could lose purchasing power during economic and social instability. He compared Ethereum with Bitcoin and gold, arguing that ETH offers additional features through decentralized finance, stablecoins and smart contracts.
We are almost certainly heading into a period of high inflation and extreme economic and social volatility.
Lubin's argument centers on Ethereum's ability to function as money while supporting financial applications that operate without traditional intermediaries. He identified Ethereum's resistance to censorship, its use as collateral and its programmable transactions among the characteristics supporting his position.
Like Bitcoin, ETH does not represent a debt obligation issued by a government or financial institution. However, Ethereum supports smart contracts that allow developers to build applications for lending, borrowing, trading and payments.
Differing views on value
ETH as store of value (SoV) makes more sense than focusing on ETH as a fee-burning token.
Lubin's comments arrive days after fellow Ethereum co-founder Vitalik Buterin questioned the argument that Ethereum's long-term valuation should depend heavily on reducing token supply through transaction fee burns.
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