With Ethereum’s rally dwarfing Bitcoin price spikes over the past year, people have been asking if we might be near the time to see Ethereum overtake the almighty crypto: Bitcoin.
(Newswire.net – June 24, 2021) – Both Bitcoin and Ethereum started the year with a great price rally that propelled both currencies to new all-time highs and acceptance. But after a few months both are now falling sharply from their peak. Bitcoin price has lost a third of its value since hitting nearly $ 65,000 in April, while Ethereum price has also plummeted nearly 50% from its mid-May high.
Considering how the Ethereum rally dwarfed the Bitcoin price hike over the past 12 months, up 1.612% compared to Bitcoin’s 418% rally, people have been asking if we might be close to the Time to see Ethereum overtake the almighty crypto: Bitcoin.
The advancement of Ethereum is evident in both the value of the ether cryptocurrency and other applications that can be developed on the blockchain. Nathan Cox, the chief investment officer of $ 100 million digital assets, Two Prime, predicts that as Ethereum grows, one day, Ethereum will “flip” Bitcoin. He said, “It is only just beginning to be understood by tier two users. The benefits of Ethereum alone will surpass anything else.”
Todd Morley, co-founder and former chief executive of investment giant Guggenheim Partners, who has become a crypto and blockchain investor and entrepreneur, also said that he believes Ethereum has “much more value” than Bitcoin – and is “where the action is . “
So if most people think that the second largest cryptocurrency, Ethereum, could flip Bitcoin in the future, what could be some of the reasons for that? Let’s take a look at some of the unique features and growth of Ethereum that could enable crypto to overtake the leading bitcoin.
Ether has more uses than Bitcoin
One fundamental thing that sets Bitcoin and many other digital-native assets apart from traditional digital payment methods like PayPal and Visa is the ability to remove all middlemen from transactions. No authorities or legal institutions are involved in these transactions, so that no one can stop or pause a transaction that you are making through the system. That is why they are called decentralized systems.
However, unlike Bitcoin, Ethereum does a lot more than just enable peer-to-peer transactions. Think of bitcoin as digital gold and ether as digital oil. One is used as a payment method or as a way to store wealth (Bitcoin) while the other works like digital oil that helps power and enable the applications that run on the Ethereum network (Ether).
Ethereum can host thousands of blockchain-based solutions, including most decentralized apps (dapps). That’s one thing that you can’t achieve with the Bitcoin blockchain. Hence, we can simply say that Ethereum is expanding the use of blockchain from simple value transfer (like Bitcoin) to more complex use cases.
Smart contracts
In contrast to Bitcoin’s blockchain, Ethereum’s blockchain allows developers to create more sophisticated programs on their blockchain. These programs are generally referred to as “smart contracts”.
A smart contract is usually used to refer to a set of rules that say that when one thing happens, it automatically triggers something else. Think of it as an automaton. When you insert a coin into the machine, it automatically delivers the items you want.
With smart contracts, you simply insert a cryptocurrency into the machine (the blockchain ledger) and you will automatically receive your legal contract, driver’s license or whatever you have agreed to. Smart contracts can help exchange money, property, stocks, or anything valuable in a transparent, conflict-free, and peer-to-peer manner to avoid the services of a middleman.
That’s one thing you can’t get from Bitcoin’s blockchain. And that’s one of the unique features of Ethereum that contributes to its steady growth.
Non-fungible tokens (NFTs)
Ehthereum’s versatility has earned it the nickname “world computers” as it has the potential to decentralize the entire Internet and change the way we transmit everything from online data to title deeds of a house.
A great example of this development is the recent trend towards non-fungible tokens, where digital works of art are sold, transferred, and stored on the blockchain, which is largely powered by Ethereum. This is a great feature within the Ethereum network that has contributed well to Ethereum’s significant price gain over the past few months.
Decentralized finance (DeFi)
Aside from being used as a form of payment, the Ethereum blockchain also has other uses, such as hosting NFTs (as mentioned above) and trading DeFi. Decentralized funding is currently a focus of the recent crypto bull run. It’s a big deal right now.
The DeFi movement is referring to a brand new currency system based on public blockchains. The acceptance of DeFi is increasing every day. As of June 2020, only about $ 1 billion was locked in DeFi smart contracts. But by April 2021, users have put over $ 69 billion worth of cryptocurrencies into DeFi smart contracts.
Banks and other financial institutions act as intermediaries in transactions. But DeFi comes to eliminate the need for it, so no one takes any part of the transactions you make. Using software and behavioral incentives and rewards, DeFi is able to eliminate any middleman and automate the entire end-to-end system.
With all of these amazing and endless possibilities that Ether offers, one will quickly understand why analysts and investors predict that it is not a question of whether Ethereum will overtake Bitcoin, but when.
Bitcoin is possibly the fastest asset in history, totaling more than $ 1 trillion in just 12 years; With Ethereum currently valued at 38% of the value of Bitcoin (from just 19% last year), Ethereum could hit the same mark in less than 8 years.
Is it wise to invest in Ethereum now?
Well, the crypto market is a very volatile one. The price can move in any direction and at any time. However, considering the recent growth and movements of Ethereum over the past few years, one will agree that investing in cryptocurrencies is unlikely to go in the wrong direction. But make sure to do your own research before investing in any cryptocurrency and don’t do more than you can safely lose.
With all of the current hype surrounding Ethereum, you may also be considering adding Ether to your portfolio. You can buy from any trusted online exchange like Binance, Coinbase, or AnyCoin Direct to get started.
Take a step now and join the sweet Ethereum movement!
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