This whole Ethereum this is a really interesting idea, but why would you build its currency on top of an inferior form of money?
Ethereum and Bitcoin compete in being money - they both solve the double-spend problem.
Do Ethereum's smart contracts give it a serious advantage over Bitcoin?
It is hard to see a way that Ethereum’s smart contract system would tend to bring in opportunities to unload ethers which are superior to the opportunities provided by Bitcoin, especially powered by Lightning.
No matter how cool smart contracts sound, they make Ethereum just another appcoin, and as with other appcoins, people will reduce the risk of holding them by not holding them, or holding them for as short a time as possible, in order to get the utility they can out of them.
This will drive their price down until they are useless in trade.
-- an excerpt from It's Not About The Technology, It's About The Money (2016), its 2-minute version can be found here: https://2minutebitcoin.org/blog/bitcoin-is-about-the-money-not-the-blockchain-technology
Discussion
Because when you can create (premine in this case) the currency out of nothing, you have an incentive to get people to adopt your currency as money, so you can dump it on them.
Fiat prints digital tokens out of nothing.
Crypto premines digital tokens out of nothing.