Ethereum (ETH) Is The Same As Fiat, Says Anthony Pompliano
Ethereum was recently in the spotlight when real-time indicators on social trading platform TradingView shifted into a bullish territory for BTC, ETH, and XRP, not too long ago.
All three coins had a buy rating on the daily, weekly, and monthly time frames, according to the indicators.
“Bitcoin’s monthly chart is signaling a strong buy; Ethereum’s daily and weekly charts are signaling a strong buy, and XRP’s daily chart is rated a strong buy,” as noted by the online publication the Daily Hodl.
Ethereum vs. fiat money
Now, Anthony Pompliano is comparing Ethereum to traditional currency.
In a new blog post, Pompliano explained the reasons for which he believes Ethereum (ETH) is practically identical to fiat.
“Fiat currencies have (a) no fixed supply, (b) an inflationary supply schedule, and (c) monetary policy decisions that are decided by a small group of individuals. Ether has (a) no fixed supply, (b) an inflationary supply schedule, and (c) monetary policy decisions that are decided by a small group of individuals,” Pompliano said.
The online publication mentioned above, brought up Erik Voorhees, founder of crypto startup ShapeShift, who cited some essential differences between ETH and government-backed money.
“Fiat has value by decree of the State. Ethereum, like Bitcoin, gold, and pork bellies, has value by bids and offers in an open market. You can hate on ETH for a number of reasons, but it ain’t fiat…” he said.
Vorhees continued and explained that “Having a limited supply is not the condition for avoiding the label of fiat. Fiat means value by legal decree. Ethereum’s value doesn’t come from the decree of government (like dollars, euros, yen).”
We recommend that you head over to the original article posted by Pomp.
In terms of pricing, ETH is also struggling to recover, and at the moment of writing this article, ETH is trading in the green, and the coin is priced at $243.71.
CoinMarketCap is a website that provides cryptocurrency market cap rankings, charts, and more. It was purchased by Binance for $400M in 2020.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.