• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play GamesTry
  • Bet & WinTry
  • Spin & WinTry
No Result
View All Result
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play GamesTry
  • Bet & WinTry
  • Spin & WinTry
No Result
View All Result
NewsBTC
No Result
View All Result
Ethereum, ETHUSD, ETHBTC, ETHUSDT, cryptocurrency
Nexo Logo

Ethereum Could Replace Bitcoin to Become Top Crypto Asset: Researcher

Yashu Gola by Yashu Gola
1 year ago
in Ethereum
Reading Time: 2 mins read
Advertisement

Ethereum, the second-largest blockchain network by valuation, has the potential to jump to replace Bitcoin to become the top digital asset, says Ryan Watkins of Messari.

The senior research analyst cited a flurry of catalysts that could lead to the so-called flippening event. Firstly, Ethereum’s full protocol upgrade to proof-of-stake from proof-of-work blockchain would lead to introducing a “burn mechanism.” It means the network would pre-algorithmically destroy more ETH tokens than its active supply, leading to better scarcity.

Ethereum, ETHUSD, ETHBTC, ETHUSDT, cryptocurrency
Ethereum is rallying near its all-time high above $2,000. Source: ETHUSD on TradingView.com

Secondly, Mr. Watkins noted that the imminent Ethereum upgrade would make its network more secure than Bitcoin. As a result, it would assume the most active blockchain’s role in the space, attracting new projects and users from the emerging decentralized finance and non-fungible token sector. Bitcoin would lack those features as it transitions to become an anti-inflation, anti-fiat store-of-value asset.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

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

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

An $800bn Gap

Bitcoin, with its one trillion dollars plus market capitalization, outgrows Ethereum by roughly $800 billion. The benchmark cryptocurrency makes for about 60 percent of the entire crypto market valuation, which would mean Ethereum bulls would need to sprint instead of jogging if they ever want to flip Bitcoin.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT
Bitcoin flies higher on its store-of-value narrative. Source: BTCUSD on TradingView.com

But Ethereum 2.0 promises to bring something that Bitcoin clearly lacks: scalability and speed. The upgrade would instantly enable Ethereum’s vast network — which backs projects like Uniswap and Tether — an edge over Bitcoin, which does not support a dapp-friendly environment.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Get 110 USDT Futures Bonus for FREE!

For instance, an upgraded Ethereum network expects to conduct 100,000 transactions per second compared to Bitcoin’s 2-6 transactions per second.

Ethereum & Metcalfe’s Law

Analyst Raoul Pal applies Metcalfe’s Law to show how Ethereum can flip Bitcoin.

In retrospect, the law states that “the effect of a network is proportional to the square of the number of nodes in said network.” To put it mildly, the more users a blockchain has, the higher its utility goes. In turn, higher transactions lead to more fee revenue. As a result, the token backing the network experiences a spike in its value.

Ethereum, ETHUSD, ETHBTC, ETHUSDT, cryptocurrency

Mr. Pal added that the Ethereum network resembles what Bitcoin was at its early stage. And the former is growing faster, which would have its market cap sprint ahead of the latter.

“My hunch is 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 base layer. Everything builds on top. The store of value is collateral, the trust layer and exchange of value is bigger.”

Tags: bitcoincryptocurrencyethbtcethereumethusdETHUSDT
Tweet123Share196ShareSend
Win up to $1,000,000 in One Spin at CryptoSlots
Yashu Gola

Yashu Gola

Yashu Gola is a Mumbai-based finance journalist. He is profoundly active in the bitcoin space since 2014 – and has contributed to several cryptocurrency media outlets, including NewsBTC, FxDailyReport, Bitcoinist, and CCN. Academically, Yashu holds a bachelor's in information technology, with majors in data structures and C++ programming language. He has also won the 'Atulya Award' for his efforts towards raising $100,000 for an India-based farming project.

Related Posts

ethereum

Ethereum Profitability Dumps To 2-Year Low As Price Corrects Below $2,000

4 hours ago
CloneX and Murakami promotional image

Blue Chip NFTs 101 – What’s The Secret Behind CloneX? Built For The Metaverse

14 hours ago
Investors May Expect Downside For Bitcoin And Ethereum Market For The Next 3 Months

Investors May Expect Downside For Bitcoin And Ethereum Market For The Next 3 Months

3 days ago
Ethereum Uniswap UNI UNIUSDT

How Ethereum’s Uniswap Reached A Milestone Of $1 Trillion In Trading Volume

3 days ago
bitcoin, ethereum

Bitcoin, Ethereum Exchange Inflows Suggest Sell-Offs Are Far From Over

3 days ago
Lido

Lido (LDO) Sheds 58% Of Its All-Time High TVL At $11 Billion

4 days ago

Premium Partners

Top Brokers

PrimeXBT

PrimeXBT

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
7BitCasino

7BitCasino

Review · Visit
Punt Casino

Punt Casino

Review · Visit
Wildcoins Casino

Wildcoins Casino

Review · Visit
CryptoSlots

CryptoSlots

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bspin

Bspin

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit

Introducing Zenith.Finance, a dark-horse lending protocol crypto players should notice recently

May 27, 2022

An introduction to Capricorn.Finance

May 27, 2022

The Web3 community platform Mojor launched the alpha version

May 27, 2022

LBank Exchange Will List Value Interlocking Exchange Coin (VIC) on May 30, 2022

May 27, 2022

LBank Exchange Will List TEAK COIN (TEAK) on May 30, 2022

May 27, 2022

ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Crypto Prices from Nomics

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2021 NewsBTC. All Rights Reserved.

  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play Games
  • Bet & Win
  • Spin & Win

© 2021 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.