BitMine’s Tom Lee asserts that Ethereum may eventually surpass Bitcoin’s market capitalization, reflecting on the historical transition when U.S. equities replaced gold as the standard following the abandonment of the gold standard 54 years ago.
Lee stated in a discussion with ARK Invest’s CEO Cathie Wood that “Ethereum could flip Bitcoin similar to how Wall Street and equities flipped gold post 71.”
As of now, Bitcoin’s market cap is approximately 4.6 times that of Ethereum, valued at around $2.17 trillion compared to Ethereum’s $476.33 billion, as reported by CoinMarketCap.
Lee References the Nixon Shock to Support Ethereum’s Growth
Lee, who manages BitMine’s Ethereum growth strategy, proposed that Ethereum may ascend in market cap similarly to how the U.S. dollar obtained dominance after 1971, when then-President Richard Nixon transitioned the dollar to a “fully synthetic” currency, decoupling it from gold.
In his words, “The immediate beneficiary was demand and a market to own gold. However, Wall Street subsequently created products that rendered the dollar dominant, resulting in a market cap disparity of $40 trillion for equities versus $2 trillion for gold.”
Lee emphasized the potential for Ethereum, claiming, “Dollar dominance is going to be the opportunity of Ethereum,” highlighting that various assets will eventually be tokenized on the blockchain.
Ongoing Debate Over the Flippening
The concept of the “flippening,” or Ethereum overtaking Bitcoin in market cap, has prompted discussion for years and currently enjoys renewed interest.
In August, Joseph Lubin, the founder of ConsenSys, remarked that Ethereum could multiply by 100 times and surpass Bitcoin’s valuation as a monetary base.
Conversely, Samson Mow, a known Bitcoin advocate, suggested that investors might revert to Bitcoin once Ethereum’s price reaches a desirable height.
Years ago, Nigel Green, CEO of DeVere Group, claimed, “Ethereum’s ascent to the top of the cryptoverse seems unstoppable,” signifying an ongoing trend toward Ethereum’s prominence in the market.
