BlackRock CEO Larry Fink Says Bitcoin Is Digital Gold, So What Is Digital Silver?

on wednesday a Interview A video went viral with BlackRock CEO Larry Fink describing bitcoin as an international asset. Not only that, Fink also pointed to digital assets like bitcoin as a way to digitize gold on the blockchain. Since then the CEO’s statement that Fink called BTC digital gold has been interpreted in various ways. So now the question is, if bitcoin is the digital gold, which cryptocurrency is the digital silver?

Is ETH Digital Silver?

The digital gold argument continues for bitcoin, but due to Ethereum being the second largest and most popular cryptocurrency by market, it is often dubbed ‘digital silver’. Its performance over the past seven years has also reinforced the claim that Ethereum is the silver equivalent of bitcoin’s gold.

There have been claims in the past that Litecoin qualifies to be called digital silver. Most of these claims were based on the fact that the mechanism of Litecoin is basically the same as that of BTC. However, in terms of performance, it has fallen short in comparison to ETH, which is now BTC’s biggest rival.

However one area where Litecoin outperforms Ethereum is when it comes to supply. While Litecoin goes through a halving event every four years like BTC to reduce its block reward and max out supply, Ethereum has none of this. The unlimited supply of ETH has generally been a point of concern as it means that the digital asset could be a perpetually inflationary asset. That is, until the implementation of ETH burn, which aims to reduce the rate at which new coins are being put into circulation.

data from ultrasound moneyA website that tracks the rate of ETH burn and issuance shows that instead of increasing, the ETH supply is now decreasing at a rate of 0.33% per year. This development allays concerns about inflation for ETH, and lends more credence to the fact that Ethereum is digital silver.

ETH price resting above $1,900 | Source: ETHUSD on Tradingview.com

bitcoin vs ethereum, which one is better?

The debate about the better alternative between Bitcoin and Ethereum continues to rage, especially on social media platforms. However, both these digital assets are unique in their own way and perform different functions in the market.

While bitcoin has carried the torch as the leading cryptocurrency, garnering massive support over the past decade, Ethereum has, in its own right, pioneered the concept of decentralized finance (DeFi).

The latter’s use of smart contracts has helped developers create financial products investors can take advantage of to manage their own funds without the need for an intermediary. However this capability is gradually being developed on bitcoin as well.

For now, both digital assets serve different sides of the market. However, this could easily change in the future.