Ethereum vs Bitcoin debate in the crypto world is not new. But there is a simple answer to this. While Bitcoin is the replacement of gold, Ethereum can be the replacement of fiat. Bitcoin is treated as a store of value and Ethereum can be treated as a medium of transaction. Both of them are exceptional at what they do or vision of doing, so the question is can Ethereum overtake Bitcoin? I am asking this because the growth rate of ETH is much higher than Bitcoin in the last year.
Can Ethereum overtake Bitcoin?
The market cap of Bitcoin and Ethereum are still miles apart but this gap has consistently narrowed down. Before the crash, while Bitcoin was near $1 trillion, Ethereum was around $500 billion. And at present, Bitcoin has a market cap of $684 billion while ETH is at $304 billion. So, we could say that Eth is currently at half of that of Bitcoin. This means in order to cross Bitcoin in a few years the growth of Ethereum should be more than 2 times that of BTC.
Now if you take a look at stats in the last year ETH has grown by around 900% and Bitcoin has seen just a 275% jump. This means it has performed more than 3 times better. So, if this happens for one more year Ethereum would cross Bitcoin in terms of market cap. Also Ethereum is widely being used in different online establishments as casinos and that it has become a very commonly used online currency, especially at Interac casino.
Why does ETH have the potential?
There are a lot of practical uses of Ethereum that make it really a great replacement to Bitcoin. Remember that BTC will be BTC but, Ethereum still can overtake it. Most of the altcoins that are coming out are built on its network and at the same time, it is going to see a major upgrade via ETH 2.0. This will address the environmental issue by implementing the proof of stake instead of proof of work. At the same time, there will be sharding which will help in increasing the number of transactions per second.
The gas price of transactions is also supposed to decrease which means that the usage will increase. All in all, there are a lot of good things happening to the network that can help ETH cross Bitcoin in some time. Do remember that having the potential doesn’t mean it will be able to topple BTC easily. This is because the market king has always dominated and sways the market along with it. If it falls, Eth also falls and if it rises so does Ethereum. So, until this market co-relation breaks things are going to be difficult.
What are your thoughts on Ethereum being able to overtake Bitcoin in some time? And do you think it will be a good thing for the market? Let us know in the comments. Also, if you found our content informative do like and share it with your friends.