Will Ethereum take over Bitcoin?
In recent weeks the crypto market has faced enough turbulence. Ethereum, which is the largest valued crypto coin after Bitcoin, has lost around half of its value. The price of the digital currencies are seeing significant drops in their overall values.
Even the Bitcoin had to face enough price drop, while just a few weeks ago, 1 single Bitcoin was valued at $65000. This turmoil occurred due to Elon Musk’s Tesla stopped accepting payments in the form of Bitcoins and China’s breakdown on crypto miners.
But according to Todd Morley, former executive and co-founder of Guggenheim Partners, Ethereum has much more potential and usage than the most valued Bitcoin. According to him, the application developers of Ethereum are developing twenty times faster than Moore’s Law. So what is exactly Moore’s Law? Moore’s Law was proposed by an engineer named Gordon Moore in 1965, who suggested that after every couple of years, the computing speeds double as well as the number of transistors per silicon chip.
Increase in Popularity and Utility
In the last twelve months, the new kind of finance system called decentralized finance has become more and more popular and is continuing to do so. Using the blockchain and networks of Ethereum, many defi applications are being built, making Ethereum indispensable in the process. Developers are also using Ethereum technology to recreate a digitized version of traditional loans and interest processes. These are designed to replace and take over the functions of banks as well as an alternative to the fiat currencies. The soaring popularity of non-fungible tokens (NFT) has also helped increase the utility of Ethereum.
Potential increase in price
Compared to Bitcoin, Ethereum’s value is increasing at a rapid pace. If we look at the data of the last couple of months, Bitcoin had an increase of 300% in its price, whereas Ethereum had an increase of 1000%. If we combine all ether tokens, the current market capitalization stands at 300 billion, which is a bit less than half of Bitcoin’s market capitalization. Furthermore, Wall Street giant Goldman Sachs has said that Ethereum has a higher chance of overtaking Bitcoins top spot in the crypto market.
The usage of the Ethereum that are popular today, for example, stable coins and reading and investment of those stablecoins against Ethereum, require reinstating of a third party which again creates a concern regarding the need of creating these applications on a decentralized blockchain.
If, by any chance, Bitcoin becomes successful to acquire the features of its competing cryptocurrencies, then their rivalry will solely rely on the monetary properties of all the existing digital coins. And if it comes to that, no doubt Bitcoin is still the most stable and liquid form of digital currency in addition to being the most credible.