Tech
Strike CEO Calls Ethereum a ‘Tech Play’, Says Bitcoin Solves the ‘Biggest Financial Problem’ of Our Time
Founder of the strike Jack Mallers recently expressed his firm belief in Bitcoin’s potential to solve what he describes as “the biggest financial problem ever”: central banking and the global debt crisis.
Mallers made the statement during a interview with Yahoo Finance on January 24, where he highlighted Bitcoin in relation to public debt, focusing on the important issue of global financial instability, mainly caused by excessive public debt.
Bitcoin is a hedge.
Mallers said the staggering global debt-to-GDP ratio, which currently stands at an alarming 360%, represents a critical problem where governments have accumulated debt to such an extent that there appears to be no feasible way to repay it. She added:
“Someone ran up a $37 trillion bar tab, so who is paying for it?”
Mallers argued that holders of government-issued currencies will ultimately bear this enormous debt burden. According to him, governments could address their debt problem by devaluing their currencies and printing more money. This process of currency devaluation erodes the value of the currency, leading to potential inflation and financial instability for those who hold these currencies.
Mallers also highlighted the current state of traditional financial markets, particularly the bond market, which he said is in its worst shape ever. Combined with the underperformance of conventional investment strategies such as the 60/40 portfolio, this paints a bleak picture of the financial landscape, further underlining Bitcoin’s relevance as an alternative investment.
According to Mallers, Bitcoin is “the only innovation” to solve the “central banking problem” and serve as a global reserve currency.
Ethereum is a “tech game”
Mallers further stated that other cryptocurrencies such as “Ethereum, SolanaAND Dogemoneta” should not be grouped together because they do not address the fundamental financial issues that Bitcoin can solve.
He called Ethereum a “tech play,” suggesting that its value and utility are more aligned with technological innovation and adoption rather than serving as a stable financial instrument. He said Ethereum is more like a speculative investment, dependent on its technological success and acceptance in broader applications, such as the financial and technology industries.
Mallers compared Ethereum to stocks, likening investing in it to investing in stocks like Tesla. She suggested that people could invest in Ethereum, hoping it would rise in value like high-performing stocks, based on technological advances and leadership rather than its potential as a stable currency or store of value.
He also implied that the success and adoption of Ethereum depends on the acceptance and use by major financial players, such as banks and institutional investors. This dependence on external factors contrasts sharply with his vision of Bitcoin, which he sees as more autonomous and independent from traditional financial systems.
His skepticism towards Ethereum stems from its history. He recalled a significant cyberattack and instances where the Ethereum Foundation intervened in transaction processes.
In his opinion, these events call into question the reliability and integrity of Ethereum as a financial instrument. He criticized the Ethereum Foundation for selectively choosing transactions in response to issues that, according to Maller, undermine the predictability and reliability essential in a financial system.