Ethereum is a “con”, will eventually “explode” like FTX as Bitcoin becomes the primary global form of money
(Kitco News) – In the long term, Bitcoin will become the world’s primary form of money, replacing the US dollar and other fiat currencies, and beating out altcoins, according to Cory Klippsten, CEO and founder of Swan Bitcoin.
“The very likely outcome is that Bitcoin continues to grow in size and market capitalization and price and purchasing power over the decades, becoming global money that will probably eventually, in the long run, replace the US dollar,” he said. “It could be as soon as 20 to 30 years from now, but it could also be something that doesn’t happen until the next century.”
Klipsten suggested that altcoins such as Ether and Solana are “s*** coins”, arguing that unlike Bitcoin, they cannot hope to become forms of money. He also said that Ethereum is a “con” that will eventually “blow up.”
“Anyone can issue and control the money supply of these altcoins, and change the code whenever they want,” he stated. “It’s something completely different from Bitcoin, which is decentralized and immutable and has no owner… None of these altcoins can become money.”
Klippsten, who correctly predicted the collapse of Celsius, Luna/UST and FTX, spoke with Michelle Makori, Lead Anchor and Editor-in-Chief of Kitco News.
FTX and “fake” DeFi
The collapse of FTX, once the third-largest crypto exchange, has rattled markets, sent Bitcoin below $17,000, and affected crypto companies such as BlockFi, which filed for bankruptcy on Monday.
Klippsten, whose company focuses on Bitcoin, said FTX’s failure and the previous dissolution of crypto firms such as Celsius, 3AC and Terraform Labs is beneficial to the industry, as it weeds out “scam” companies.
“We Bitcoiners are very happy to take short-term price disruptions and have Bitcoin on sale … if it helps wash out some of these scam business models and some of these unsavory characters around Bitcoin,” he said. “We call it Orange Washing.”
Klippsten, who predicted the FTX collapse before it happened, called FTX CEO Sam Bankman-Fried “Scam Bankster Fraud.” He also suggested that Ethereum, which recently moved to a proof-of-stake protocol, would fail as it becomes increasingly “complicated” and politicized.
“Ethereum is a long con,” he said. “This thing is kind of theoretically broken from the start, trying to pack way too much functionality into a Layer One protocol… All proof-of-stake networks are doomed from the start and can’t exist in the long run . They’re inherently political. They’re basically just fiat. . . . This thing is going to be a big bang in the end.”
He added that “DeFi is fundamentally fake.”
“You’re looking at something more like a Power Law distribution, where 1 percent of people are ripping the faces off the 99 percent,” he said. “It’s really a terrible market to be in unless you’re an insider.”
Bitcoin price
Suggesting that Bitcoin moves in four-year cycles, Klipsten said it appears the Federal Reserve is getting ready to pivot from its monetary tightening, toward a more dovish policy. This in turn could affect Bitcoin.
“I think you’ll see the Fed loosen up and we’ll come through and wash out everything that’s happened with tech stock speculation and overleveraging in the system,” he said. “If we can kick the can down the road again, it looks like at some point there will be another bull market in all assets globally … it seems [Bitcoin] just want to go along for the ride.”
He added that, given its four-year cycles, Bitcoin has a likely floor just below $14,000.
“It’s very hard for me to believe that Bitcoin would go below $13,800, which was the weekly close back in December 2017, and the high in June 2019,” he said.
Klipsten, however, added that there is no price that Bitcoin can reach, in the short term, that would worry him.
“Enough of us understand what we have discovered and what has been invented with the advent of Bitcoin,” he said. “I believe the truth will prevail.”
Previous warnings
Klippsten had previously warned about Celsius, Luna/UST and FTX, claiming they were “Ponzi schemes” well before they failed.
In July, for example, Klippsten tweeted and suggested that FTX is one of many “crypto schemes and scams”. At the beginning of November, FTX filed for bankruptcy.
To find out which crypto firm Cory Klippsten thinks could be the next to collapse, watch the video above.
Follow Michelle Makori on Twitter: @MichelleMakori
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