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November 29, 2022
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Can Ethereum really overtake Bitcoin?

Some analysts say Ethereum has all the potential to overtake Bitcoin in the long run, while others remain unmoved by the current reality.

Specifically, analysts at Goldman Sachs and WisdomTree argue that Vitalik Buterin’s cryptocurrency, ETH, is the active candidate to continue to receive the accolades it has already garnered, overtaking Bitcoin.

On the other hand, there are many opposing views. In other words, that the pioneer BTC will maintain its dominance in the crypto market.

At the moment, the entire crypto market is trying to resist the collapse dictated by China’s announcement of a crypto ban.

In that sense, in the latest report by Goldman Sachs, “Crypto: a new asset class?”In addition to analyzing Bitcoin, analysts focus on Ethereum, describing it as follows:

“A blockchain platform like Ethereum can become a huge market for those who sell reliable information, just as Amazon does today with consumer goods.”

They add that Buterin’s cryptocurrency has the characteristics to surpass Bitcoin as a dominant store of value.

Not only that, Jason Guthrie, head of digital assets at WisdomTree, considered the current breakdown of cryptocurrencies an ideal time to unleash a new cycle of asset reallocation, which would favor Ethereum.

According to Guthrie, changing Ethereum from a Proof of Work (PoW) protocol, such as Bitcoin, to a Proof of Bet (PoS) would eliminate the environmental damage caused by mining, due to which Musk said he had to cancel the use of bitcoin to buy Teslas.

Can Ethereum outperform Bitcoin?

The price increase trend last year was + 300% for BTC compared to its price 12 months ago, compared to + 1000% for ETH.

A growth rate that could suggest the possibility that Ethereum could actually overtake Bitcoin. Certainly, the current US $ 40,000 from BTC, with US $ 700 billion in market capitalization, against US $ 2,500 from ETH, with US $ 300 billion in market capitalization, are not exactly comparable figures.

Still, looking to the future, Ethereum has three points in its favor against one, perhaps the most important, still in the hands of BTC.

Ethereum is the technology behind the Ethereum Virtual Machine (EVM) which, thanks to smart contracts, has been able to develop other markets over time.

In fact, the explosion of interest in tokenization, the creation of decentralized finance or DeFi, and the new expanding market for NFTs (Non-Fungible Tokens) are just some of the bases for the development of Ethereum in the crypto and fintech context.

Bitcoin, on the other hand, is the Golden White Paper that gave rise to the entire crypto world and maintains its hegemony as it progresses. In fact, its popularity has even been highlighted recently, after a report from NYDIG confirmed that almost 50 million Americans own bitcoin.

In addition, bitcoin is still the most accepted form of payment by companies that innovated, ventured into the crypto world from BTC. It is no accident that MasterCard, Tesla and others chose BTC over other cryptocurrencies because of its popularity.

And again, BTC is ubiquitous! Any cryptocurrency exchange offers exchanges at BTC before moving on to other crypto assets like Ethereum.

Therefore, the question of whether Ethereum can really outperform Bitcoin may not be a reality.

Satoshi Nakamoto’s cryptocurrency retains a wealth of ideals that paved the way for the entire market from point to point of decentralization and disintermediation.

BTC represents the revolutionary icon of the entire crypto movement, from which ETH and all other altcoins were born. A real challenge for ETH, which will probably have its chance, being the second crypto by market capitalization, and the most dynamic and revolutionary, but still the daughter of a movement created by BTC.

Source: Cryptonomist

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