Why Ethereum Could Eventually Overtake Bitcoin

The turbulence in cryptocurrencies has hit the markets in recent weeks. Ethereum, the second largest cryptocurrency after Bitcoin, has lost around 50% of its value.

Bitcoin price has also fallen sharply from its all-time high of nearly $ 65,000 per bitcoin, which was set in mid-April. The moody Tesla TSLA billionaire Elon Musk and fears that a Bitcoin and crypto move in China could take the wind out of Bitcoin’s sails.

Todd Morley, co-founder and former CEO of investment giant Guggenheim Partners who has become a crypto and blockchain investor and entrepreneur, says Ethereum is “far more useful” than Bitcoin – and “where the action is”.

MORE FROM FORBESLeaked Goldman Sachs prediction gives ‘high chance’ Ethereum will dwarf BitcoinBy Billy Bambrough

The competition between Bitcoin and Ethereum has intensified in recent months as the price of both … [+] rival tokens have shot higher.

Getty Images

“Ethereum has a much higher benefit for me [than bitcoin] through smart contracts, “Morley told Bloomberg TV, warning that companies that don’t have a digital strategy run the risk” of something “suddenly popping up” and your Walkman looking like an abacus. “

“Technologies that started Bitcoin are moving very quickly to other parts of the world. Ethereum’s app developers have grown 20 times, much, much faster than Moore’s law in the past six years.”

Moore’s Law, coined in 1965 by engineer Gordon Moore, provides for computing speed to double every few years, along with the number of transistors per silicon chip.

In the past 12 months, so-called decentralized finance – which uses cryptocurrency technology built on the Ethereum network to restore traditional financial instruments like loans and interest, and replace the role of banks with blockchain-based protocols – has grown in popularity and helps the Ethereum price rocket.

Meanwhile, the runaway popularity of non-fungible tokens (NFTs), largely issued on Ethereum’s blockchain to digitize art and collectibles, has added another use case for Ethereum.

The price rally for Ethereum in recent months has far exceeded that of Bitcoin. Ethereum is up nearly 1,000% versus 300% for Bitcoin, even after Ethereum’s recent price drop. The market capitalization of Ethereum, the total value of all Ether tokens in circulation, has risen to nearly $ 300 billion, just under half that of Bitcoin to nearly $ 700 billion.

MORE FROM FORBESBitcoin has crashed: what’s next after the 50% drop in prices in “Extreme Fear”?By Billy Bambrough

The price of the Ethereum has risen over the past year and its rally has accelerated in recent years … [+] Months before the peak in mid-May. In the meantime, the Bitcoin price has also collapsed again after its big rally in early 2021.

Coinbase

Earlier this month, a report from Wall Street giant Goldman Sachs gave Ethereum a “high chance” of overtaking Bitcoin as the “dominant” store of value – calling it the “Amazon of Information”.

“Given the importance of real uses in determining the store of value, ether has a high chance of overtaking Bitcoin as the dominant store of value,” wrote Goldman Sachs analysts, according to leaked sections of the report posted on Twitter.

Elsewhere, some believe that long-awaited upgrades from Ethereum, which began late last year and are designed to help scale Ethereum and lower its sky-high transaction costs, could help the price of ether hit heights never seen before.

Mark Cuban, the billionaire made famous by reality TV series Shark Tank, believes Ethereum’s long-awaited 2.0 upgrade will trigger the development of apps that “dwarf” Bitcoin.

Recent articles

Crypto exchanges struggle as El Salvador adopts Bitcoin

Today, Bitcoin is becoming an official currency in El Salvador, and the markets and crypto exchanges seem to be struggling. On...

Schools are back – and time to comply with the ICO’s Age Appropriate Design Code

As of September 2, 2021, the United Kingdom's Information Commissioner's Office ("ICO") expects organizations to use their Age Appropriate Design Code ("AADC"). The...

the ICO wants input on when personal data goes international

You don't have to be a data-focused IT service provider to realize that the UK was lucky enough to receive an adequacy decision from...