When Vitalik Buterin was developing Ethereum,if he was told that it will someday outperform Bitcoin in the crypto market,I doubt if he would have believed that. Although Ethereum has not outrightly done that, but I believe it's on the verge of outperforming Bitcoin in this crazy altcoin season.
Bitcoin as we all know is a very good coin but it has some flaws that can limit its performance at a certain point in the future. These problems ranges from its high transaction fees to its annoyingly slow transaction time. This is simply as a result of its 1MB size block which is very small compared to the data and information it conveys.
I'm actually anticipating a future where this transaction time will increase to days and weeks as a result of congestion of network as the coin gains massive adoption. At this point,the gas fees would be so exorbitant that investors might not find it funny anymore. They will be left with no choice than to abandon the project
At this point is where Ethereum will take over as the leading cryptocurrency.
But ask me " why "?
Because Ethereum is actually the champion of Decentralized Finance (Defi). It's the soil on which most cryptocurrencies germinate and grow and it's showing it very clearly in this altcoin bull season.
After its release on 30 July 2015, Ethereum went on to become the most actively used blockchain with the second largest market cap till date. It gained a massive recognition despite having the already trending Bitcoin to contend with. It was only able to do this because of its different offer of smart contracts which allowed other cryptocurrencies to be created and operated on its blockchain.
This progressed into the possibility of building applications on the Ethereum blockchain while also being a digital money. This is where it has the potential to outperform Bitcoin because Bitcoin as a cryptocurrency is only a digital money which has nothing else to offer other than that (No use case).
As at the time of writing this, Ethereum blockchain could boast of having over 1000 cryptocurrency projects built on its blockchain and these tokens each is said to have a market cap of not less than $1 Million dollars. This left me with the question " Which cryptocurrency is not built on the Ethereum blockchain?". Just a few.
It won't be an exaggeration to say that Ethereum is the foundation holding the cryptocurrency market. (What else is holding it?🤔). This actually means that, if Ethereum network or blockchain crashes, over half of the crypto market would disappear.
Currently, (at the time of writing) Ethereum has proven this claim by spearheading this current bull season and hitting a new ATH of $1,778 with a market cap of $203 billion and a 24hr volume of $39 billion. This is a sign which shows its future potential of dominating the crypto market.
Apart from all these, many enterprise software companies like JP Morgan Chase,IBM, Microsoft and others are currently testing Ethereum-based softwares and networks for their company use. Other top institutions like Amazon, Barclays, Credit Suisse are currently experimenting with Ethereum for potential adoption.
The fact is that these companies and institutions are now seeing Ethereum as the new store of value which also has an extra use case to offer. This makes them seek for a way to connect to this Ethereum's versatile network even if it means building on its blockchain.
Other Little Reason Why Ethereum Will Outperform Bitcoin
1. Ethereum's block time is 13 seconds while Bitcoin's block time is over 10 minutes and might increase as the day goes by
2. Ethereum's proof of work reduces the advantage of specialized ASICS in mining through its use of Ethash algorithm
3. Ethereum generates a new coin in mining at a constant rate while Bitcoin's rate undergoes havening every four years.
These and many more others are the reason while Ethereum will definitely outperform Bitcoin in the nearest future. I wont be surprise to see a massive adoption of Ethereum by countries, institutions and companies in the next two years.
And also, it won't be something so wow-ing to see the internet revolutionized by Ethereum blockchain. It's already happening. We just have to look out and see.
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