First Mover: Digital Gold Narrative Could Be Bitcoin's Lone Ace as Ethereum Gains

The trend could be good for bitcoin, which many crypto investors believe can serve as a hedge against inflation, a digital and perhaps more portable alternative to gold.

As detailed last week by SeekingAlpha contributor Lyn Alden, the trend has been clear since roughly 1980, when the share of wealth held by the world's richest 0.1% of people began a decades-long rise from about 5% to more than 20%.But increasingly, it looks like bitcoin-as-inflation-hedge might be the cryptocurrency's most compelling investment narrative, and not necessarily as the dominant digital asset for perpetuity, as many so-called bitcoin maximalists have argued.

Last week, bitcoin's "Dominance" - the market value of all bitcoins in existence, divided by the market value of all digital assets - fell to 57%, from 68% at the start of the year, according to CoinMarketCap.

Ether's market value has climbed to about 12% of the industry total, from about 6.8% at the start of the year.

"The rivalry between Bitcoin 'maximalists' and Ethereum enthusiasts has become more polarized in recent months, with each side latching on to narratives that best support the asset to which they have pledged their allegiance," Kevin Kelly, co-founder of the market-analysis firm Delphi Digital, wrote this month in report.

Recently, Ethereum has been "Playing catch-up to its 'digital gold' counterpart."

Bitcoin is again taking cues from traditional markets.

Bitcoin is currently down over 2% at $10,650 and may suffer a more significant drop if the risk aversion worsens, boosting demand for the safe-haven U.S. dollar.

The recent rise in the outflow of coins from miner wallets to exchanges could add to bearish pressures around bitcoin.

Curve: Decentralized stablecoin exchange starts new dividend program for holders of governance token.