Bitcoin, the ‘currency of the internet’ is going mainstream on May 19 and almost collapsed the currency circle, however, this event did not affect the topic of "Ethereum will replace Bitcoin as the world's largest cryptocurrency by market value in 2021."
Has Ethereum already matched or even surpassed Bitcoin? Will Bitcoin go down in the second half of the year? Today, we will talk about this topic.
The difference between Bitcoin and Ethereum
Bitcoin and Ethereum are essentially based on an application of blockchain technology, and they are different in terms of circulation, consensus algorithms, and smart contracts.
Circulation volume: The supply of Bitcoin is limited, only 21 million bitcoin are issued globally, while Ethereum can theoretically be issued infinitely.
Consensus algorithm: Bitcoin uses POW, and Ethereum uses POW transfer to POS.
Moreover, Bitcoin and Ethereum are also different in terms of market position. Bitcoin is the first well-known cryptocurrency in the world. It has currency properties but has not been recognized by market supervision. Bitcoin is called Blockchain 1.0; Ethereum is called Blockchain 2.0, and it is a large-scale and widely used smart contract platform. It is a very valuable ecosystem that can help companies create and trade any crypto assets on the blockchain. To provide solutions for enterprises, Ethereum has natural legitimacy, which Bitcoin.
In the form of user groups, Bitcoin and Ethereum also have a few differences. Bitcoin's current main users are concentrated in cryptocurrency holders, miners, and developers, while Ethereum users are mainly concentrated in secondary development institutions/organizations and cryptocurrency holders. Developers, miners, and developers.
What is the best public blockchain？
As one of the public chains in the blockchain, there has been an obvious rise in Ethereum during the last 3 years. With the advantages of complete decentralization, more efficient on-chain development, and lower costs, it attracts more and more developers to develop projects based on Ethereum.
Among them, the technology of the most popular project called Defi is based on Ethereum. With the rapid development of the Defi ecosystem, its total amount will reach 150 billion US dollars, which is incredible. In the second half of 2021, Ethereum will usher in the launch of phase 12.0, which will greatly improve the scalability of the blockchain network.
Many blockchain experts believe that as a global smart-contract platform, Ethereum will have the opportunity and ability to upgrade the global economy and become a solid foundation for the global digital economy.
The development of NFT also proves the power of the Ethereum public chain. With the popularity of NFT, more people are beginning to pay attention to encrypted digital music, art, and games, and begin to trade NFT peripherals. The economy is becoming digital.
However, Bitcoin has a significant impact on the blockchain industry. Bitcoin has realized a series of economic-related work such as coinage, accounting, teller, auditing, and the currency settlement network. Also, bitcoin is perfectly interpreted and reached the design goal.
Will Ethereum eventually replace Bitcoin?
Ethereum and Bitcoin belong to two completely different ecosystems. They both have absolute advantages in their respective fields. Many are discussing that Ethereum will eventually replace Bitcoin, also including the leading international investment bank Goldman Sachs even calls Ethereum. It may replace Bitcoin as the mainstream cryptocurrency, but after all, it is the outsiders watching the excitement and the insiders watching the doorway. Looking to the future, Ethereum and Bitcoin will increasingly tend to complement each other, rather than separate and oppose each other.
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