Will Ethereum Surpass Bitcoin?

 

I was recently asked by one of my colleagues in crypto trading, what are my thoughts about Ethereum surpassing Bitcoin in the future?

Indeed, a very tricky question; however, there is a huge possibility just by looking into the current trends. As discussed in my previous article “Why should you invest in Ethereum” I clearly highlighted the rapid growth of Ethereum for the span of 4 months.

The value of 1 Ether (ETH) last December 2020 was just $746.06, comparing it to today’s current value which is $2,127.38 USD and still soaring, it has an increase of 286% in just 4 months.

Before we take a closer look into the vulnerability of both Ethereum and Bitcoin we should examine first the strength Ethereum has in the crypto world.

• Anyone can use Ethereum for banking services, such as savings, borrowings, and lending.
• There is a high level of privacy since you do not have to provide any personal details when using an Ethereum app.
• You do not have to go through an intermediary to make a transaction.
• Compatibility is built into the platform. This has allowed for a rich ecosystem of applications.
• Transaction fees are minimal.

Looking Into a Big Picture of a Volatile Ethereum

Popularity - The main goal is to be popular like what Bitcoin did. The coin itself should be appealing to the Investors; otherwise, it won’t reach its goal to surpass Bitcoin.

According to some reports, Ethereum is the most-watched cryptocurrency on YouTube gaining around 231 Million views ever more than Bitcoin.

Many YouTubers were a bit sensational and over-hyped about Ethereum making its growth phenomenal as it enters 2021.

In contrast, Bitcoin has a little under 200 million views. Other top-ranking cryptos like LINK, Cardano, and Ripple achieved 45 million, 43 million, and 38 million views respectively.

 

Reports from Yahoo Finance:

In a recent interview with Fintech Today, Watkins said that the shift towards Ethereum 2.0 would bring about some changes in the coin’s monetary policy, which could lead to Ether (ETH) taking over as the leading cryptocurrency in the future.

“I think that the shift to Ethereum 2.0 and proof of stake, which is kind of like a new way of securing the Ethereum blockchain...Ethereum may actually, be more secure than Bitcoin”, he said.

Watch it here: Fintech Today/Youtube

The Biggest Treat

As we all know, in layman’s terms there’s a lot of things Ethereum can do that Bitcoin can't, simple as that.

Ethereum is a huge computing network that enables anybody to build a decentralized application.  A business, if it decided that it needed a blockchain-developed solution, could employ a programmer to build that on the Ethereum platform. While Ether (ETH) is simply a product of Ethereum which is capable of performing the same function as Bitcoin

 As we have heard and seen, governments are beginning to put restrictions on cryptocurrencies, concerned that their citizens are speculating on something which their governments perceive they do not understand. While this could impact Ether & Bitcoin; however, Ethereum wouldn’t be affected. If governments put restrictions on cryptocurrencies including Ether, businesses will still be able to use the Ethereum platform for things such as payment services, which banks and many other entities are doing already.

So if the government will continue to put restrictions on the market and becomes ugly in the future, Ethereum will definitely survive while other cryptocurrencies like Bitcoin will crash into despair.

With the continuing creep of government regulation and the ongoing tag of financial crime driving market behaviors. The biggest threat to Bitcoin remains Bitcoin itself.  Ether has the advantage of being associated with Ethereum, and Ethereum does what Bitcoin cannot do, and came to be because of the limitations and single function of Bitcoin.

 

The Upcoming is Yet To Be Revealed

Despite this, while Ether is clearly a competitor to Bitcoin, bearing in mind that the combined market capitalization of both is way south of the market capitalization of some of the world’s biggest companies, there is room for both at present, and for now, Ethereum won’t “overtake” Bitcoin.