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CryptoNEWS: Ethereum Cloud to Replace Bitcoin as Top Crypto Asset?

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Written by   1237
1 year ago

Ryan Watkins of Messari said that Ethereum has the potential to jump and replace Bitcoin as the top digital asset, given that it is the second-largest blockchain network by valuation.

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Cloud can lead to the so-called flippening event as a cited catalyst by the senior research analyst. The upgrade of Ethereum's protocol from proof-of-stake to the proof-of-work blockchain can introduce a “burn mechanism”, meaning the network will be pre-algorithmically destroy more ETH tokens than its active supply, which will lead to rising scarcity.

Photo from Tradingview.com

Mr. Watkins also noted that the coming Ethereum upgrade will make its network more secure than Bitcoin. Making it the most active blockchain's role in the space, to attract more and new projects also users emerging from decentralized finance and non-fungible token sector, as assumed. Bitcoin is lacking those features as it only transits to become an anti-inflation, anti,-fiat, and store of value asset.

“The selling level of Bitcoin over Ethereum as a store of value asset boils down its financial policy being very predictable and the Bitcoin blockchain being very secure,” Mr. Watkins said. “I think that with the shift to Eth2 and Proof-of-Stake, […] Ethereum may potentially be more secure than Bitcoin.”

If Ethereum is safer and it [has] a dominant monetary policy, well, then what is the bull case for Bitcoin in this scenario,” the researcher added.

Market Capitalization Gap

Photo from Tradingview.com

With a one trillion dollars plus in Bitcoin market capitalization, it outgrows Ethereum by approximately $800 billion. The cryptocurrency benchmark makes about 60 percent of the entire crypto market valuation, which means Ethereum bulls need to hurry instead of scampering if they want to flip over Bitcoin.

With Ethereum 2.0 it promises to bring something Bitcoin lacking; scalability and speed. This upgrade will immediately enable Ethereum's vast network which backed projects like Uniswap and Tether can be an edge over Bitcoin that doesn't support a DApp-friendly environment.

With this, an upgraded Ethereum network will be expected to conduct 100,000 transactions per second compared to Bitcoin's 2-6 transactions per second only...

The Ethereum and Metcalfe's law

Analyst Raoul Pal applies Metcalfe's law on how can Ethereum flip Bitcoin.

The law states that “the effect of a network is symmetrical to the square of the number of nodes in the said network”. In simple terms, the more users a blockchain has, the higher its utility takes off, which means the higher transactions lead to more fee revenue. Resulting, the token used by the network will experience a spike in its value. (Side note: This is what Bitcoin Cash blockchain also aims to)

Photo from the source

The Ethereum network resembles Bitcoin at its early stage, the former is growing faster which will have its market cap sprint ahead of the latter, Mr. Pal added.

“My premonition is that BTC is a perfect collateral layer but ETH might be bigger in market cap terms in 10 years,” he added. “Money and collateral is just the root layer. Everything builds on top. The store of value is collateral, the trust layer and exchange of value is bigger.”

Closing Thoughts

Do you think the same with that analyst? Do you think Ethereum will spike over Bitcoin as a store value within 10 years? Do you think some prediction that Ethereum will hit $10, 000 within this year 2021?  Do you hold some Eth on your portfolio?


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CryptoNEWS: This is a blog where I write about some crypto stuffs and news aside from my CryptoBUY blogs. I love learning and writing about crypto topics as well aside from personal blogs..

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Written by   1237
1 year ago
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Comments

Luhh, mas gusto ko sanang marining na ang BCH na ang mangungunang crypto, pero di naman masamang mangarao diga ehehe.

$ 0.00
1 year ago

Hahaha, wala pang news na ganyan pero malay mo after 5 years 😊

$ 0.00
1 year ago

I wouldn't be surprised, the ecosystem justifies it, but I'm not sure about the timeframe. If people really start to pay attention to fundamentals, it will, but BCH will surpass Core as well... and those will be happy days.

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1 year ago

Yes, nobody can tell about the time frame and I am sure BCH to will make its way on top too for sure.

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1 year ago

Eth need to scale first then flippening will drumroll again 🥁

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1 year ago

Yes, that's what it promises on their upcoming upgrade. Thanks for the tips.

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1 year ago

Not in the next 4-5 years

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1 year ago

10 years later maybe 🤣

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1 year ago

Muito bom artigo. Parabens

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1 year ago

Bilis gumalaw ng eth kaso mahal fee sayang hahaha

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1 year ago

Haha, oo okay lang ata sa Binance lang buy and sell.

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1 year ago

Inistake ko na sa Cub Finance ung Eth ko para di natutulog sa Binance. Hahaha 😹 Grabe ung $10K. Sana nga. 😹😹

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1 year ago

Si marc nagsabi nyan $10k 🤣 hala oo nga noh may konting eth din ako kaso mahal nang fee palipat lipat.

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1 year ago

From CrypBuy to CryptoNews .. Ikaw na 👏 Kaso mahal tlga ni Ethereum eh pati ang fees. Good as investment vehicle lng

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1 year ago

Oo nga mahal talaga, pero good investment talaga sya di nga lang pang dialy used kamahal nang fees haha.

Hahaha para di mawalan nang topics. Napunta na sa crypto news.

$ 0.00
1 year ago