Bitcoin loyalist, Tuur Demeester, backs Ethereum thanks to DeFi

Long time supporter of Bitcoin and critic of Ethereum now says he is long on the smart contract platform

After years of criticising Ethereum, Tuur Demeester, a long term backer of Bitcoin, announced via Twitter that he will be taking the long position with Ethereum, though not without doubts about its fundamentals.

I agree with @PeterLBrandt, ETH/BTC technicals are looking bullish so I'm long. (I still think ETH has extremely problematic fundamentals.) pic.twitter.com/yoKhcGeL9f

— Tuur Demeester (@TuurDemeester) July 8, 2020

In a video announcement last month, Demeester expressed how he will be scaling back his public relationship with Bitcoin due to its recent politicisation, as well as his desire to focus more on humanitarian matters.

“One of the issues I’ve felt with self-labelled Libertarians and anarchists is that there’s often a level of compassion lacking, and so, rather than try and change their minds, I’m trying to see if there are other ways to talk about this stuff,” Demeester explained.

This shift to Ethereum comes at a time when the DeFi market is gaining popularity and numerous projects that use its blockchain are being given lots of attention.

Why Ethereum now?

Ethereum facilitates smart contract technology and the adoption of blockchain into many industries with its Hyperledger platform.

Industries such as sports, media, entertainment and logistics are starting to see the value of blockchain technology and have been replacing their traditional systems with Ethereum’s Hyperledger, making it an emerging force in the global industrial sector.

With the introduction of token Compound (COMP), an Ethereum based decentralised financial service, interest has increased with many of its current and potential users, propelling the Ethereum Defi market up to an explosive $2 billion in Q2 2020.

The surge of interest in DeFi appears to still be in the early stages, which means it may see more growth over the next few years — especially in a near-zero interest rate environment where investors are hungry for high-yield returns.

Great future prospects

Demeester recognises this boom and sees the potential of Ethereum, but remains doubtful of the platform still believing there are flaws that need to be remedied. During his video announcement, he reiterated his belief in Bitcoin.

Experts suggest that a swing of this scale may still only be temporary, as DeFi is still in its development stages. Overall, however, they remain positive for how the DeFi market is looking right now.

The future of Ethereum and many of its development tools is still uncertain. However, it is undeniable that it is the basis of the future development of various industries around the world.