ABRA CEO's Long Term bullish prospect of Ethereum

Bill Barhydt, CEO and inventor of the well-known cryptocurrency wallet service Abra, explained why he believes Ethereum (ETH) is a much better investment than Bitcoin (BTC). He also set a price prediction of $40,000 for ETH, which shows his confidence in its future development. He also noted that Ethereum is used for various reasons such as DeFi, stablecoins, NFTs and even games. It also has a “network effect”; This means that the value of cryptocurrencies will likely increase as the number of customers increases, making it an even greater utility.

Useful uses of Ethereum (ETH)

The main argument that makes Ethereum so valuable is that it has use cases. According to Bill, the network effects of Bitcoin (BTC) make it an unreliable, immutable and unmanipulated backup asset. In terms of flexibility, reliability, and value enhancement, Ethereum network effects are much more practical in terms of short-term exponential growth. Also, Bitcoin has become deflationary due to the burning of Ethereum, while the quantity of Bitcoin is stable, meaning its supply is actually decreasing over time. With this in mind, some analysts have said that it is extremely likely that Ethereum will dethrone Bitcoin in the next 10 years. Ethereum, a long-time large-scale competitor to Bitcoin, has several technological challenges it must solve in order to gain market dominance.

That's exactly what Ethereum developers hope to achieve with an update to the underlying blockchain dubbed "Ethereum 2.0". Upcoming changes will include the application of a processing technique known as "shredding". Currently, all data added to the Blockchain version must be verified by all participating nodes. However, by incorporating sharding into the mix, Ethereum 2.0 can significantly improve the efficiency of resource use. The new system will do this by dividing the data validation tasks among groups of nodes, with each node responsible for validating only the data it receives. This enables the entire Blockchain to use parallel processing, potentially increasing overall capacity by a greater proportion. Ethereum is moving from proof-of-work (PoW) to proof-of-stake (PoS) consensus. It is planned as a vital part of the strategy to scale Ethereum through updates.