When will Ethereum take the place of Bitcoin, and can it? 

When will Ethereum take the place of Bitcoin, and can it? 

When will Ethereum take the place of Bitcoin, and can it? 

Since its inception, Bitcoin has been the leading cryptocurrency. It has the largest capitalization, trading volume, and number of investors. In 12 years, no one has been able to supplant bitcoin. That may never happen in the future. But today, there are many reasons to buy ETH on the Alligat0r crypto exchange aggregator

However, there is another behemoth in the form of Ethereum. It is one step away from moving from PoW to PoS. The release of the Ethereum 2.0 update could change the balance of power in the market and bring the cryptocurrency to the forefront. The drivers will not be Ethereum itself, but DeFi and NFT, which are built on this blockchain.

Ethereum is almost catching up to Bitcoin.

In the spring of 2021, Ethereum miners were able to earn more than bitcoin miners. The Ethereum network at times ranks first in the number of daily transactions. Its capitalization is also growing rapidly. At the moment, bitcoin’s capitalization is $954 billion, while Ethereum’s is $450 billion. The difference is not so big-just twice. But it is worth remembering that capitalization increases from year to year. 

In January 2017, the difference was 22 times, in January 2020 it was x10, in January 2021 it was x7, and now it is x2. Bitcoin has a value of 42% and Ethereum has a value of 20%. For the second cryptocurrency, this is very high.

Comparing Bitcoin to Ethereum

Bitcoin is a cryptocurrency that has a narrow range of uses and runs on the old PoW algorithm. Bitcoin is not suitable for money transfers, with much fewer micro-payments. The fee can exceed the size of the payment itself, and the blockchain speed is limited to 7–10 transactions per second.

Ethereum is faster and allows 30 transactions per second. But while the network will run on PoW, it is also not the best option for sending payments. However, if a sidechain solution is used, 2,000 to 4,000 transactions per second can be achieved, and low fees can be paid.

The development team is actively working on the transition to Ethereum 2.0. This is a long-awaited update that will allow 

  • Make use of the PoS algorithm.
  • Participate in staking.
  • Make instant payments.
  • This will make the Ethereum network more environmentally friendly.

In Ethereum 2.0, it will be possible to run smart contracts, decentralized applications, DeFi projects, and NFT. The options for using Ethereum are many. Ethereum will gradually catch up to Bitcoin, and there are several reasons for this.

Bitcoin can not evolve, but Ethereum can. The project has a larger development staff, a larger ecosystem of products, and more potential for real-world use. The Ethereum you remember from 2016 and now are two different projects. In 12 years, Bitcoin couldn’t change, and Ethereum has changed beyond recognition in 5 years. 

You can run anything on Ethereum, whether it’s social networks or credit services. That means there is more value to Ethereum. ETH is cheaper than bitcoin and has more potential for price growth. The probability that Ethereum will grow to $10,000 is much higher than that of bitcoin to $200,000. 

The DeFi-project currently has over $96 billion in blockchain assets, while a year ago the value was $6 billion. The NFT token sales totaled over $220 billion, all of which increased demand for Ethereum and was a driver of price growth.

Many projects are going away. Litecoin, for example. So we recommend exchanging LTC to NEO, a more promising cryptocurrency. And there is no need to bet everything on either Ethereum or Bitcoin. Invest in both cryptocurrencies and explore new projects. And then you won’t lose out.

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When will Ethereum take the place of Bitcoin, and can it? 

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