“ETH is not trying to be ‘a better money,” says Jackson.
The analyst predicts an “ethhereanization” of the financial world.
The most common comparison in the market is between Bitcoin (BTC) and Ethher (ETH), Ethereum’s native cryptocurrency. Both are the best known and those of greatest value, which generates the perception that they compete directly.
For Eric Jackson, investor and founder of the EMJ Capital firm, this is “the biggest mistake that people make with ETH”, and holds: “They believe it is competing with BTC, when in reality it is replacing the Internet. That is what most do not understand.”
In his opinion, ETH is not trying to “be a better money”, but “is building a new digital infrastructure for data movement, value and identity online.” In addition, he says:
“In 5 years, you will not be able to ‘connect to the Internet’. You will access networks driven by Ethereum without even knowing it. Your bank? Reconstructed as an intelligent contract. Your login? Insured with chain identification …”
Eric Jackson, investor and founder of the EMJ Capital firm.
In simplest terms, Jackson imagines a future in which users navigate through Ethereum -based networks, even if they don’t know it. Besides, Describe a scenario of “Ethereanization”From the financial world, in which banks would be intelligent contractsthe session would be insured with chain identities and the applications would run on ROLLUPS (which, as Cryptonotics explained is a tool that is used to process multiple transactions quickly and economically outside the main network).
Jackson also states that Ethereum will be the Back End (Technological Base, in Spanish) of sectors such as Artificial Intelligence (AI), Finance, Video Games and Social Networks. “ETH is not just a Token. It is the basis for a new digital economy. The infrastructure work of the decade,” he says.
Before continuing, it must be clarified that some of Jackson’s claims may be contradictory or exaggerated. We will analyze each in detail to understand their possible implications.
The first one is the affirmation “ETH is not intended to be a better money.” If this were true, Why among the Ethereans (Ethereum followers) won the narrative of “ultrasound money“After The Merge?
This idea of “Ultra Sonic Money” proposes Ether as a superior and solid form of money against inflation, in a clear comparison with the currency created by Satoshi Nakamoto for its limited offer in 21 million units.
However, in practice, the deflationary rhythm of Ether has slowed down and does not meet the expectations of many Ethereans. The main reason for this brake is the Dencun update, implemented in March 2024. This technical improvement significantly reduced commissions in the Ethereum Network, which, although it favors adoption, also decreased the amount of ETH burned in each block. Having less burns, lDeflationary pressure is diluted and the narrative of “Ultrasound Money” was losing strength.
That said, it is valid to ask if in 5 years everything Jackson imagines will occur. Although the investor has an ambitious and transformative vision of the digital ecosystem, it seems unlikely that in that short time Ethereum manages to become the main infrastructure for all types of applications.
It is that technology still faces challenges in scalability, costs and mass acceptance, in addition to the regulatory panorama and competition can modify the course.
For example, While Ethereum remains the network with the highest total blocked value (TVL) In decentralized finance (Defi), with more than 73,000 million dollars, other chains, such as Solana they have gained ground quickly thanks to their lower costs and faster speed.
Although the domain exceeds 57%, according to data from DefillEthereum’s hegemony is not guaranteed and adoption still faces important obstacles.
“Do not measure it as Bitcoin”
To finish his thesis, Jackson reinforces the idea that Ethereum will change finances and the Internet. That is why he suggests: “Do not measure it as a BTC. Mix it as the basis that drives the new digital economy.”
But it makes sense to be compared for a simple reason: Both Bitcoin and Ether are digital assets that compete to attract the capital of investors. While it is true that they are different, nothing prevents them from putting them against each other when evaluating opportunities.
Bitcoin is known as “digital gold” for its role as a reserve of value, while Ether is usually described as “digital oil” because it is the resource that feeds all the infrastructure of the ecosystem created by Vitalik Bugerin: from intelligent contracts to decentralized applications (DAPPS) and other services.
In short, the comparison between both digital assets will continue to be inevitable while both lead the ecosystem. Jackson’s vision offers a very optimistic look at Ethereum’s role in the digital economy, but only time will tell if this hegemony in the financial world is concretized.
