Benjamin Cowen Compares Ethereum And Gold As Store Of Value

Benjamin Cowen, a leading crypto strategist, looks into Ethereum (ETH) to draw a better picture in order to understand if ETH has the elements to be a store of value.

Cowen recently spoke with the crypto channel InvestAnswers, and said that while many investors see gold as a store of value, but the dilemma is that it has not gone up in value over the last 10 years or so. 

“What do people mean when they say store value? Do you mean you want it to stay the same price and store the value, or do you want it to increase in value? I think there’s sort of a disconnect there…

That’s one of the things we see on Twitter with gold. There’s a lot of gold investors that like it because theoretically, it’s a store of value, but the problem is it hasn’t done anything in a decade, so while the price is the same that it was 10 years ago, it’s not worth as much because of inflation.”

Cowen makes a case that Ethereum is a better store of value than gold, due to the fact that ETH has gone up nearly 50x in value over the past 12 months. However, the analyst points out that storing wealth in ETH has the potential for pullbacks and long consolidation periods.  

“I do think Ethereum will trend up with time like Bitcoin, and I think the definition of ‘store of value’ applies as long as you have a right time horizon and as long as your definition of store value isn’t that always has to monotonically increase.

If you give it the flexibility to have occasional drops, then I think that makes sense. You can’t really expect something to go up from $100 to $4,800, a 48x in a year and not have some type of a pullback and long consolidation phase. As long as you allow for that, I think you can give it sort of the same narrative.”