VC Fred Wilson slams Ethereum: “Bitcoin is our digital gold”

The co-founder of Union Square Capital, a venture capital company Fred Wilson has altered his earlier bullish sentiments regarding Ethereum. In his opinion and prediction back in 2017, Wilson said that Ethereum was on the way to beat Bitcoin in market capitalization. He added that Ethereum would be much more valuable than BTC.

Fast forward to September 4, 2019, Wilson thinks otherwise in his blog post. According to him, Network challenges are holding Ethereum back. Besides, emerging platforms are offering a competitive edge above Ethereum by offering better alternatives.

“Ethereum, as many of you know, confounds me. It has shown the way to so many important things; smart contracts, programmable trust-free computing, potentially proof of stake, and a lot more. But it remains hard to build on, scaling issues abound, and many developers are looking elsewhere.”

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His view comes barely a month since Vitalik Buterin, Ethereum’s co-founder admitted to the challenges facing Ethereum including the network being full.

“If you’re a bigger organization, the calculus is that if we join, it will not only be more full but we will be competing with everyone for transaction space. It’s already expensive and it will be even five times more expensive because of us.”

Interestingly, Wilson was bullish on the largest cryptocurrency Bitcoin and said that there is no asset in the market that can match its capabilities. He continued: “There are some protocols, like the privacy-focused ones, that offer similar and in some cases better use cases. But for the most part, Bitcoin is our digital gold.”