- 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.
- 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.
- “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.
Friday, March 19, 2021
ETHEREUM ETH could replace BITCOIN BTC to become TOP 🤯🤔
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