Ethereum is a ‘con’, will eventually ‘explode’ like FTX as bitcoin becomes mainstream global currency

(Kitco News) – According to Cory Klippsten, CEO and founder of Swan Bitcoin, in the long term, Bitcoin will replace the US dollar and other fiat currencies and overtake altcoins to become the world’s main form of money.

“The most likely outcome is that Bitcoin continues to grow in size, market cap, price and purchasing power over decades, eventually becoming the global currency that will replace the US dollar in the long term,” he said. “It could happen in 20 to 30 years, but it could also be something that won’t happen until the next century.”

Suggesting that altcoins like Ether and Solana are “s***coins,” Klippsten argued that unlike Bitcoin, they cannot hope to be converted into forms of money. He also said that Ethereum is a ‘con’ that will eventually ‘explode’.

“Anyone can issue and control the money supply of these altcoins and change the code whenever they want,” he said. “It’s a very different thing than Bitcoin, which is decentralized and immutable and has no owner… None of these altcoins can be monetized.”

Correctly predicting the collapse of Celsius, Luna/UST and FTX, Klippsten spoke with Michelle Makori, anchor and editor-in-chief of Kitco News.

FTX and ‘fake’ DeFi

The collapse of FTX, once the third-largest cryptocurrency exchange, rattled markets, sending Bitcoin below $17,000 and affecting crypto businesses like BlockFi, which filed for bankruptcy on Monday.

Klippsten, whose company focuses on Bitcoin, said the failure of FTX and the earlier collapse of crypto companies like Celsius, 3AC and Terraform Labs was good for the industry because it destroyed “scam” businesses.

“We bitcoiners are very happy with the short-term price swings and the fact that Bitcoin is on sale… if it helps remove some of these fraudulent business models and these unsavory characters around Bitcoin,” he said.

Predicting the collapse of FTX before it happened, Klippsten called FTX CEO Sam Bankman-Fried a “Fraudulent Bankster Fraud”. He also stated that Ethereum, which recently moved to a proof-of-stake protocol, will fail as it becomes increasingly “complicated” and politicized.

“Ethereum is a long fraud,” he said. “This thing is theoretically broken from the start, trying to cram too much functionality into Layer One Protocol… All proof-of-concept networks are doomed from the start and cannot exist in the long term. They are essentially political. They are basically fiat… This thing is ultimately a huge there’s going to be a blast.”

He added that “DeFi is mostly fake.”

“You’re looking at more of a Power Law distribution, where 1 percent of people are ripping off the face of 99 percent,” he said. “Unless you’re an insider, it’s a really scary market to be in.”

Bitcoin Price

Noting that Bitcoin moves in four-year cycles, Klippsten said the Federal Reserve is poised to shift from monetary tightening to a more dovish policy. This in turn could affect Bitcoin.

“I think you’re going to see the Fed unwind and we’re going to eliminate everything that’s going on in the system with tech stock speculation and excessive leverage,” he said. “If we can get the box going again, it looks like there will be another bull market in all assets globally at some point… [Bitcoin] just going along for the ride.”

He added that given its four-year cycle, Bitcoin has a likely floor just below $14,000.

“I find it very hard to believe that Bitcoin will fall below its weekly close of December 2017 and its high of $13,800 in June 2019,” he said.

However, Klippsten added that there is no price Bitcoin could reach in the short term that would worry him.

“Quite a few of us understand what we discovered and what was invented with the birth of Bitcoin,” he said. “I think the truth will prevail.”

Previous Notices

Klippsten previously warned about Celsius, Luna/UST and FTX, claiming they were “Ponzi schemes” long before they failed.

For example, in July, Klippsten tweeted that FTX was one of many “crypto schemes and scams”. In early November, FTX declared bankruptcy.

Watch the video above to find out which cryptocurrency firm Cory Klippsten thinks will collapse.

Follow Michelle Makori on Twitter: @MichelleMakori

Follow Kitco News on Twitter: @KitcoNewsNOW

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