This segment from the 0xResearch newsletter discusses the long-term investment potential of crypto assets, particularly Bitcoin (BTC) and Ethereum (ETH). The investor John Pfeffer's original thesis argued that BTC would become the dominant store of value, while ETH bulls claim the superiority of ETH for its use within the Ethereum Virtual Machine (EVM) ecosystem. However, Pfeffer's paper and a newly-published paper by Triton Liquid Fund suggest that valuing ETH is challenging due to its constant protocol innovation. The paper concludes that, based on current valuations, ETH appears overvalued and difficult to justify as a rational long-term investment. BTC, on the other hand, is seen as a sound risk-adjusted bet to grow into its role as a non-sovereign store of value.



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