Ethereum is a ‘con’, will eventually ‘blow up’ like FTX as Bitcoin becomes primary global form of money

(Kitco News) – In the long-run, Bitcoin will become the world’s primary form of money, replacing the U.S. 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 cap and price and purchasing power over the decades, and become global money that will probably eventually, in the long run, replace the U.S. 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.”

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

“Someone can issue and control the money supply of these altcoins, and change the code whenever they want,” he stated. “It’s something very 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 at Kitco News.

FTX and ‘fake’ DeFi

The collapse of FTX, once the third largest crypto exchange, has roiled 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 that FTX’s failure and the prior disintegration of crypto firms like Celsius, 3AC, and Terraform Labs, is beneficial for the industry, since it wipes out “scam” businesses.

“We Bitcoiners are totally happy to take short-term price upsets 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.

Klippsten, who predicted the FTX collapse before it occurred, called FTX’s CEO Sam Bankman-Fried “Scam Bankster Fraud.” He also implied that Ethereum, which recently transitioned to a proof-of-stake protocol, would fail as it grows increasingly “complicated” and politicized.

“Ethereum is a long con,” he said. “This thing is sort of broken theoretically from the beginning, trying to pack way too much functionality into a Layer One Protocol… All proof-of-stake networks are doomed from the start and cannot exist in the long-run. They’re inherently political. They’re basically just fiat… This thing is going to be a big blow up in the end.”

He added that “DeFi is basically 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 an awful market to participate in unless you’re an insider.”

Bitcoin Price

Suggesting that Bitcoin moves in four-year cycles, Klippsten said that it appears that the Federal Reserve is getting ready to pivot from its monetary tightening, towards a more dovish policy. This, in turn, could affect Bitcoin.

“I think you’ll see the Fed loosening and we’ll get through and wash out everything that has gone on with tech stock speculation and over-leverage in the system,” he said. “If we can kick the can down the road again, it seems like at some point there will be another bull market in all assets globally… it seems like [Bitcoin] will just be along for the ride.”

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

“It’s really hard for me to believe that Bitcoin would go below $13,800, which was the weekly close back in December of 2017, and the high in June of 2019,” he said.

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

“Enough of us understand what we’ve discovered and what has been invented with the advent of Bitcoin,” he said. “I think the truth will win out.”

Prior Warnings

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

In July, for example, Klippsten tweeted, suggesting that FTX is one of many “crypto schemes and scams.” In early November, FTX filed for bankruptcy.

To find out which crypto firm Cory Klippsten thinks may be the next to collapse, watch the video above.

Follow Michelle Makori on Twitter: @MichelleMakori

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