Ethereum co-founder, Joseph Lubin, believes Ether (ETH) is massively undervalued. He thinks it’s poised to become far more valuable than the entire global economy.
Lubin’s Bold Prediction
Lubin recently shared his bullish outlook on X (formerly Twitter). He agreed with a research paper comparing ETH to “digital oil,” but argued it didn’t go far enough. He predicts ETH will be the backbone of a future “hybrid human-machine intelligence society.” This society, he says, will generate far more value than our current $113.8 trillion global economy. He points to the exponential growth in energy consumption, chip production, data centers, and AI as evidence.
ETH vs. BTC: A New Perspective
Lubin further distinguishes between Bitcoin (BTC) and Ethereum (ETH). He sees BTC as “Gold 2.0,” a store of value. However, he views ETH as the native currency of a programmable, decentralized economy. This economy, fueled by AI, will largely operate on decentralized infrastructure.
The “Trust Diamond” Analogy
Lubin uses a thought experiment: imagine a magical “trust diamond” that adds value to every transaction. He believes ETH is this diamond, its decentralized validation system making it the ultimate trust commodity. This “trust premium,” combined with the demand for ETH as “digital oil” (transaction fees), will drive its value incredibly high.
The Current Reality Check
Currently, ETH’s market cap is around $307 billion, a tiny fraction of global GDP. However, Lubin points out that a significant portion of ETH is locked up in staking contracts, reducing the circulating supply. He sees this as a sign of things to come, not the peak.
The Bottom Line
Lubin’s vision is ambitious. Whether ETH can truly surpass global GDP is uncertain. However, his argument highlights the potential of a future where programmable trust is a key driver of economic activity. He believes that simply viewing ETH as just “software gas” is a huge underestimation of its future potential.