MicroStrategy founder Michael Saylor has ignited a big debate just by mentioning Bitcoin and Ethereum in the same sentence.
In a viral tweet, the chief executive of the publicly traded business intelligence firm shares a chart that he says shows the real network dominance of Bitcoin.
“When considering network dominance in the crypto industry, I find it clarifying to separate crypto-asset networks like Bitcoin from crypto-application networks like Ethereum & stablecoins. Bitcoin dominance has advanced from a low of 71.05% on December 20, 2017 to 93.57% today.”
According to BitcoinDominance.com, the Real Bitcoin Dominance Index measures the market share of BTC among proof-of-work crypto assets that bill themselves as money. The coins included in the index shared by Saylor are:
- Bitcoin (BTC)
- Litecoin (LTC)
- Bitcoin Satoshi Vision (BSV)
- Bitcoin Cash (BCH)
- Monero (XMR)
- Dash (DASH)
- Zcash (ZEC)
- Bitcoin Gold (BTG)
- Ethereum Classic (ETC)
- Dogecoin (DOGE)
- Decred (DCR)
Saylor’s tweet immediately sparked a wide array of reactions from figures of the crypto community. EthHub founder Anthony Sassano says Saylor is confusing his followers.
“Your chart still includes all the other coins in this list including Ethereum Classic which, by your definition, is a “crypto-application network”. Stop spreading this misinformation and making up your own rules.”
Crypto investor Alex Saunders makes a case that MicroStrategy does not understand the fundamental nature of his investment as he is simply pulling a “magical number out of thin air.”
With all due respect this is the worst case I've ever seen of "value of investment" to "understanding that investment" ratio. How can you invest $475M but not understand dominance? $ETH has more Tx by number, value, fees & users, but it's "not a crypto asset network like $BTC"!?— Alex Saunders ????? (@AlexSaundersAU) September 20, 2020
Meanwhile, a pseudonymous crypto enthusiast named Crypto Martian chimes in to clarify Michael Saylor’s point.
“I think when he says ‘crypto asset network’ he means hard/sound money. Ethereum is designed to be a decentralized global computer, whereas Bitcoin is designed to be perfect money. Bitcoin is money and Ethereum is a computing platform. Bitcoin is a better store of value than ETH.”
As of writing, Saylor’s polarizing tweet has garnered 199 comments, 585 tweets, and 2,500 likes.