The CEO of Circle states that Bitcoin and Ethereum are probably oversold and have a bright future

Circle CEO and co-founder Jeremy Allaire said Bitcoin and Ethereum have a bright future in a recent appearance on CNBC's Squawk Box.

Allaire says that the metrics that compare the use of blockchain networks with the value of their native resources suggest that both Bitcoins, and in particular Ethereum, are oversold

For readers interested in some of these metrics, a fundamental analysis of Bitcoin and Ethereum that was recently prepared by Placeholder VC partner Chris Burniske is certainly worth reading.

Jeremy Allaire expects the Ethereum network to facilitate a variety of useful services such as borrowing and issuing securities. Cryptographic resources such as the USD currency, a standard ERC20 token with a dollar on the Ethereum network, will help facilitate these services, according to Allaire.

Allaire was reluctant to make a direct prediction, but said he believes that in three years, Bitcoin will be worth far more than it is today.

"I do not make significant price forecasts, but I think it will certainly be worth much more than it is today."

When asked about his thesis on why he expects Bitcoin to increase considerably in value, Allaire explained:

"I think the key thing with Bitcoin is, it's unique in its security and in its size, and again, this idea is that we need a reserve of non-sovereign value, a low reserve of non-sovereign value that individuals can hold in a protected fashion, it is attractive all over the world and I think it will always be more attractive ".

Interestingly, Allaire did not mention Bitcoin's original peer-to-peer cash view. Bitcoin's volatility and scalability problems have made it difficult to argue BTC as a suitable currency for everyday use.