- Bitcoin is presently the most globally recognized crypto asset in the world.
- Ethereum arrived to fill the gaps left by the Bitcoin blockchain, but can it surpass BTC?
- Various factors come into play that could lead to ETH outperforming BTC in the future.
Since Bitcoin’s arrival, many new blockchains have been launched to challenge the pioneer crypto asset. These blockchains came to be to make up for the lack of the Bitcoin blockchain. For instance, scalability, speed, and greater utility were some of the features new blockchains were hoping to provide.
The first blockchain to launch in an attempt to fill the gaps in the then-existing Bitcoin blockchain was the Ethereum network. Ethereum came with its native token ETH and aims to launch more functionality for blockchain developers that could do more than simple financial transactions.
Ethereum’s Promise of a Greater Blockchain
In many ways, Ethereum ushers a new blockchain reality. Developers could now accomplish more than just crypto transactions. On Ethereum, instead of just building on the chain with a single goal of bettering the blockchain, developers could build new projects on the network.
With the introduction of smart contracts, Ethereum introduced exceptional new possibilities to the blockchain realm. Starting with decentralized applications (dApps), Ethereum went on to introduce decentralized gaming, staking, yield farming, liquidity pools, decentralized exchanges, non-fungible tokens, and much more.
Ethereum’s Roadblock to Dethroning Bitcoin
This placed Ethereum in an exciting position to eventually dethrone Bitcoin. The two assets are recognized as the top two cryptos in the industry. Soon after Ethereum took off, it grew at a rapid pace. Unfortunately, this rapid growth is what hindered its road to dominance.
Ethereum welcomes a great amount of users which made the blockchain slow which in turn led to rocketing gas prices on its network. This led to Ethereum’s leader Vitalik Buterin to take a major decision that would change the future of Ethereum, the launch of Ethereum 2.0.
To solve the congestion and gas fees issues, Ethereum would shift from a Proof-of-Work (PoW) consensus to a Proof-of-Stake (PoS) consensus. This however was easier said than done. It took the team the next 7 years to launch Ethereum 2.0., even then, the launch happened in phases and the full effect of this shift is still yet to reflect on the blockchain.
Can Ethereum Outperform Bitcoin?
In the present crypto bull run, many expect both ETH and BTC to set new ATH that could add an extra digit to both assets. It may not happen this crypto bull cycle, but there is an expectation for Ethereum to possibly outperform Bitcoin sometime in the future. But is there merit to this expectation? Let’s have a closer look.
Tech and Use Cases: Ethereum is considered to be far more versatile than Bitcoin. After all, Dapps and DeFi projects began on the Ethereum network. Even with Bitcoin’s latest technological breakthroughs, Ethereum has had a greater head start making it the more superior blockchain in this aspect.
Market Cap: In this aspect, Bitcoin has always been the leader and is even recognized as ‘digital gold’ by financial experts and institutes. It is certainly possible for ETH to exceed BTC in this aspect but this would require a huge shift in investor sentiment. This will be hard to achieve as Bitcoin is accepted as legal tender in some countries but ETH has not.
Scalability and Upgrades: Ethereum has always been more scalable than Bitcoin. It offers more opportunities for developers and projects in its ecosystem. Furthermore, its shift to Ethereum 2.0 and the updates that come with this shift make it a very capable blockchain that can deliver greater speed and a lot more opportunities to developers in the future. This makes Ethereum a very attractive investment, especially as the more sustainable choice.
Investment Perspective: Bitcoin and Ethereum are both recognized as volatile assets. So far, Bitcoin is seen as the more stable and safer option. However, for those with lower capital investments, ETH rises as a choice for greater gains.
Despite Bitcoin’s dominance so far, Ethereum is well-poised to possibly take over one day. This however completely depends on how the crypto market will play out in the coming years. Another aspect that puts Ethereum on par with Bitcoin is the fact that it is the only other crypto token that got an ETF launch alongside BTC.
So, can ETH beat BTC one day? It is certainly a possibility, but only time will tell. It is important to do your own research and steadily watch daily market moves as even the smallest market update could change the outcome of the future in crypto.
FAQ
Ethereum is a decentralized global software platform powered by blockchain technology and was the first to introduce an altcoin in the form of its native token, Ether (ETH). It was launched as a competitor to the Bitcoin network hoping to provide more utility for blockchain developers. Ethereum also introduced smart contracts, DeFi protocols, NFTs, web3 gaming, dApps, and much more.
Ethereum hoped to become a blockchain that could offer more to decentralized users than just financial transactions like the early Bitcoin network. It delivered but at the cost of rising gas fees and great congestion on the network. Ethereum 2.0 is an upgraded version that aims to solve the blockchain’s scaling challenges.
Presently, Bitcoin is seen as a much safer and less volatile option for investors and traders. However, Ethereum’s greater utility features and its shift to a Proof-of-Stake (PoS) network make it an appealing offer for new investors with smaller capital. This makes it highly possible for ETH to outperform BTC in the future.
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