Twitter executive is not going to invest in Ethereum ETH

Twitter CEO Jack Dorsey is very fond of Bitcoin – and to the point that he is even ready to openly criticize other cryptocurrencies. The day before, Ethereum, the second largest cryptocurrency coin by capitalization, fell under the gun of his criticism.

At the same time, while Dorsey himself remains a Bitcoin maximalist, his company still finds fundamental value and uses the ETH blockchain.

By tradition, let’s start with an explanation. Jack Dorsey is a representative of the camp of the so-called Bitcoin maximalists. We are talking about the fans of the first cryptocurrency, who consider it the only correct and promising one. They are often hostile towards other coins, calling them useless and unnecessary. According to BTC-maxi, «altcoins are only suitable for speculation,» and Bitcoin fans prefer not to notice revolutionary products like representatives of the decentralized finance niche.

We consider this approach to be erroneous. Firstly, many new projects have given the world tremendous promise that truly makes people‘s lives better. Secondly, the technical capabilities of Bitcoin will not be enough for the mass popularization of cryptocurrencies in the event of the disappearance of all other coins.

Recall that the BTC network is capable of handling only seven transactions per second, and this is clearly not enough for the use of one blockchain by millions of people. Most likely, in an ideal world for Bitcoin maximalists with only one existing cryptocurrency, BTC transfer fees would be worth much more than the $ 62 equivalent recorded in April 2021.

bitcoin chart commission rate

Bitcoin Network Fee Chart

However, these arguments do not stop BTC lovers. And Jack Dorsey is an example of an ardent fan of the first cryptocurrency.

What cryptocurrencies are celebrities investing in?

On the eve of the social network Twitter released its own collection of unique NFT-tokens on the Eth network, tied to animated images with a reference to the company’s logos.

Recall that NFTs are unique tokens in the blockchains of different cryptocurrencies, which are cryptographically connected to certain objects in digital or physical form. NFTs confirm the fact of complete ownership of a certain job by a person, and for this the latter does not even need to reveal his identity. We analyzed the topic in detail and even gave an example of creating such tokens in a separate article .

The collection consists of 140 digital objects, which is also a kind of reference: initially, the maximum length of a Twitter message was limited to exactly 140 characters. NFTs are distributed to users of the social platform, but they can then sell tokens on the Rarible trading platform .

User packanimalETH noted that given the current situation, «Jack’s investment in Ethereum is only a matter of time. » However, Dorsey himself replied to the message, and made it a short and laconic «no.» That is, a very funny conflict arises – the company uses altcoin and promotes digital goods based on it, but its CEO refuses to recognize the fundamental advantages of the ETH network .

Here are a few more NFTs being promoted by the Twitter team. For example, this is Vitamin T, which ensures a good time with daily consumption.

And this is the first tweet from the creator of the platform, Jack Dorsey, captured inside the Tamagotchi.

This is not the first time Dorsey has made it clear that he is investing his money exclusively in BTC, the largest cryptocurrency by market capitalization. For example, at the largest crypto conference held in Miami this year, the entrepreneur said that «all other coins mean nothing to him at all. » He also said that «if developing and developing Bitcoin required more help than Square and Twitter, the entrepreneur would focus exclusively on BTC.»

miami bitcoin conference

Jack Dorsey at the Miami Bitcoin Conference

As a result, Jack still intends to make Bitcoin the «currency for the internet» and does not want to have anything to do with other cryptocurrencies or related digital products, Decrypt reports .

However, oddly enough, back in March, Dorsey sold his first tweet in the form of NFT for $ 2.9 million , and the deal was made in ETH. Later, he stated that he converted these funds into BTC before donating them to charity. However, this does not negate the fact that it would not have been possible to create an NFT on the Bitcoin network and sell it in the first cryptocurrency.

We believe that such a «straightforward» approach to the fundamental valuation of crypto investments is wrong. Bitcoin and Ethereum have different uses, although both cryptocurrencies can be considered purely investment vehicles. So far, Ethereum powers the world’s largest smart contract ecosystem , which makes the coin very valuable in the eyes of investors.

Dorsey’s point of view is likely to change in the future. At least after the transition of Ethereum to version 2.0, the cryptocurrency network will be able to process thousands of transactions per second, and it will be impossible to deny the merits of this blockchain.

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