• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Financial Services

I'll Say It Again: Ethereum Beats Bitcoin

While the Ethereum platform is surging, interest in Bitcoin is declining.
By ROGER ARNOLD May 03, 2017 | 01:00 PM EDT
Stocks quotes in this article: JPM, MSFT, INTC, UBS

Periodically, for the past three years, I've written about the blockchain technologies of Bitcoin and Ethereum. The motivation for doing so was the conceptual introduction of the need for a blockchain technology other than Bitcoin; which I discussed in the column, "Ethereum Is a True Game-Changer." 

As Ethereum moved from concept to development and application during the past few years, I intermittently wrote columns concerning its negative implications for the commercial viability of Bitcoin. 

The 2016 columns "Bitcoin Is Dead, Long Live the Blockchain" and "Performing an Autopsy on the Bitcoin" elicited a lot of comments, mostly disagreeing with my belief that Ethereum would displace Bitcoin completely in the commercial space. 

Even though I haven't written about the subject in over a year, I still receive queries and challenges to those columns almost daily. When I'm speaking at a conference, I am also asked about the issue even if it's not a part of the subject matter being presented. 

The booleanized version of my response is to buy Ethereum-related technology and Ether, and avoid Bitcoin altogether. 

That was my message three years ago and is still my message. 

About a year after I first wrote about the concept of Ethereum, its cryptocurrency, Ether, became available at $1.35 per Ether unit. It was about $8 at the beginning of this year and is now about $80. 

That's a staggering performance for 19 months and naturally leads to questions about whether it's overdone. 

Although a correction is obviously possible for any number of reasons, I continue to believe the Ethereum technology will displace Bitcoin entirely and that it is still in the very early phases of its adoption, expansion and value increase. 

The inertia behind the recent investor interest in Ethereum is due to the increased commercial application of the technology, especially by the financial sector, and the commensurate disinterest in pursuing Bitcoin. 

This is evidenced in the creation of the Enterprise Ethereum Alliance just a few months ago, and the even more recent announcement by JPMorgan Chase (JPM) that it is going to terminate its relationship with the group that was pursuing Bitcoin technology as the principal commercial application technology. 

What's most interesting about this is that it is all occurring as Bitcoin continues to reach new record highs almost daily. 

That increase has led many to tell me Bitcoin is still the preferred technology. 

Since Ether was introduced in September 2015, its price has increased about 6,000%. During the same time period, Bitcoin has increased by about 650%. 

As good as Bitcoin's performance has been, the performance of Ether should give investors pause in considering the relative potential of the two. 

Earlier this year, the SEC decided not to allow a Bitcoin ETF to be listed. It is considering the same issue for Ether and I think there is a greater chance of it being approved than there was for Bitcoin. 

If that happens, the inertia pushing Ethereum to displace Bitcoin will increase and accelerate.

Even if it doesn't, though, I believe the shift by the largest technology and financial firms to Ethereum and away from Bitcoin will continue. 

The safest way to speculate on the trajectory I've written about playing out, beyond purchasing Ether, is to take positions in those firms participating in the Ethereum Alliance: Microsoft (MSFT) , Intel (INTC) , JPMorgan Chase and UBS Group (UBS) . 

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

At the time of publication, Arnold had no positions in the stocks mentioned.

TAGS: Currencies | Markets | Financial Services | Investing

More from Financial Services

Berkshire and Buffett Rightly Put Their Value Stamp of Approval on Citigroup

Brad Ginesin
May 17, 2022 10:01 AM EDT

The nod from the Oracle of Omaha's company could signal that it's finally the right time to buy the banking giant.

SoFi Technologies Is Primed for a Rebound

Bruce Kamich
May 16, 2022 8:50 AM EDT

Here's where the shares may be headed next.

Affirm's Results Impressed and Here's Why I Want a Piece of the Action

Stephen Guilfoyle
May 13, 2022 11:00 AM EDT

There are several reasons why the shares were trading higher.

Affirm's Bounce Fails to Impress Me

Bruce Kamich
May 13, 2022 8:45 AM EDT

Don't expect AFRM to rally for long or go very far.

Time to Toss COIN

Bruce Kamich
May 11, 2022 11:56 AM EDT

There's no way around it, Coinbase's charts look tarnished following its earnings miss. Let's see if there's a silver lining in this for traders ... or not.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 01:44 PM EDT STEPHEN GUILFOYLE

    Stocks Under $10 Portfolio

    We're making a series of trades here.
  • 03:07 PM EDT PAUL PRICE

    Why Is Walmart Down Big Today?

    Besides its poor earnings report Walmart was way...
  • 07:14 PM EDT PAUL PRICE

    A New, Very Scary Movie

  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login