No doubt, Ethereum and Bitcoin are the best crypto currencies in this rapidly evolving industry. As we all know, Bitcoin is the most popular and well-known cryptocurrency, with a market cap of more than $1.1 trillion at its ATH, accounting for nearly half of the $2.6 trillion cryptocurrency industry as a whole before the infamous dip. On the other hand, we have Ethereum, the world’s second most valuable cryptocurrency, which has been maintaining a close range to BTC for years now.
Ethereum is a platform that is not focused in one direction, but rather has a decentralizing feature as well as a core quality such as the blockchain. The distinction between Ethereum and Bitcoin has sparked much debate, and it has also piqued the interest of professional traders and investors who believe that Eth has the potential to outperform Bitcoin’s $660 billion market capitalization.
Most people believe this because of Ethereum’s real-world application and ability to maintain value. Unlike Bitcoin, Eth has the ability to be programmed with smart contract features.
Even as Bitcoin has its advantages, there are several reasons why Ethereum could surpass Bitcoin someday. In this article, we will look at some of the reasons why this revolutionary Altcoin may one day surpass Bitcoin. Read on!
Reasons Why Ethereum May Surpass Bitcoin as the Best Cryptocurrency
- Ethereum has a diverse set of uses.
Although Bitcoin is primarily used for payment, the Ethereum blockchain offers a wide range of applications that have the potential to transform a variety of industries.
Ethereum can host smart contracts, which allow two people to conduct transactions without the need for an intermediary. Smart contracts also bring up new financial and technological prospects, such as decentralized finance (DeFi) and non-fungible coins (NFTs).
Though Ethereum is not the only network that can host smart contracts, it is the largest and most popular for applications such as DeFi and NFTs. Even if cryptocurrency does not become generally accepted as a means of payment, Ethereum may still flourish if smart contracts or any of its other uses become popular.
- Ethereum as a medium of exchange
As a block chain network, Ethereum is a decentralized public ledger that can be used for transaction verification and storage. The holders of Eth can utilize the platform to create, monetize, publish, and use numerous applications and also pay for various transactions.
This has resulted in a higher usage rate for Ethereum in recent months, with more transactions than Bitcoin. Regardless of the fall in cryptocurrency stock over the last 12 months, Eth rose about 1000% compared to Bitcoin, which increased only 300%.
Although Bitcoin is a highly valuable currency, the block-chains of Ethereum stand at a high advantage. Also, as a result of recent innovations and upgrades to the Ethereum platform, it is obviously holding its ground as the most preferred host for Dapps.
- Ethereum runs smart contracts.
A smart contract is software that runs on the ERC blockchain; it is a collection of codes and data that are stored at a specific address on the ERC block-chain.
Smart contracts require writing codes that can run automatically when specific requirements are met. This code allows an insurance policy to make payments without having to file a claim. It also makes non-fungible tokens available (NFTS).
- With Ethereum, the opportunities are endless.
Since Ethereum is an open-source blockchain, developers can create new software on the network. It may be new coins housed on Ethereum’s blockchain or decentralized programs like NFTs.
It’s network’s potential is only limited by developers’ creativity because anybody can create a new software or coin on it. Even though nobody knows how revolutionary Ethereum will be, some enthusiasts feel that if the internet today is considered Web 2.0, Ethereum and all of its decentralized applications may be Web 3.0.
While Bitcoin is now the most popular cryptocurrency, Ethereum has a number of benefits that might propel it ahead of the competition. While there are no guarantees when it comes to investing in cryptocurrencies, Eth might be a good bet.
Ethereum, which was founded in 2015, processes transactions quicker than Bitcoin and uses less energy. Reports have it that engineers are working on a 2.0 version of the network that will transition it from a Proof of Work mining pattern to a Proof of Stake adaptable network.
These upgrades make it more ecologically friendly, reducing the amount of effort miners must put into accessing the network. Crypto users hopes it solves the recurring issues of high gas fees and slow transaction plaguing the network.
Despite Bitcoin’s extensive history and track record, Eth’s variety of financial goods and services, which also aims at providing developers with long-term potential to design decentralized applications, may propel it to the top of the rankings.
Having said all that, Ethereum, as a rapidly rising stock with a plethora of upgrades that provide a variety of transaction alternatives, has the potential to surpass Bitcoin in the near future.
This content is provided for informational purposes only and does not represent investment advice.