dapp: ETH vs. BTC: Is the Flippening possible? (EIP-1559 impact)

IT Consultant / Certified Crypto Trader

Will Ethereum develop a strong monetary advantage as ETH supply starts being burned? Would this be a threat to Bitcoin?

We have seen several projects to be targeting both BTC (such as BTG, BCH, BSV) and ETH (EOS, QCK, BNB, eGLD, ZIL etc) with new innovations such as speed, scalability, and user's experience but none is really coming close except BNB which is widely adopted when developer want to sacrifice cost as against seamless user experience and ETH is about to get that resolved. I cannot see ETH threatening on BTC to have a huge impact both now and in the near future. BTC is limited in supply and it is argued severally that BTC might not be more than 16 Million as against 21 Million of total supply as many has been lost during the early stage when BTC worth less than a penny to addresses that private keys was not properly kept. Additionally, the deceased person that got in early and did not pass the private key to anybody is also inclusive, such addresses have no transaction for over a decade. ETH was not created to compete with BTC but as a platform for dApp. BTC is a store of value and poss to replace the traditional mode of currencies. When any thought comes about cryptocurrency, Bitcoin is the first to reckon with, the dominance is huge and most investors feel comfortable with BTC despite its volatility. While ETH keeps on to evolve is the platform that many people see as the future of blockchain, as of now, the platform holds over 70% of DeFi (Decentralized Finance) projects and the ETH 2.0 and EIP-1559 that may likely happen in this quarter, a lot of issues will be addressed which will make it retain its relevancy and gain more dominance in the crypto market share index but I don't see it competing with BTC anytime soon with the huge supply despite the approach of strategically burning the total supply.

Founder | Innovator | Advisor | Decentralized Business Consultant

Will Ethereum develop a strong monetary advantage as ETH supply starts being burned? Would this be a threat to Bitcoin?

Ethereum is not a threat to Bitcoin because of Ethereum's early move towards becoming the dApp platform of choice. This is something Bitcoin did not quite achieve. Indeed Bitcoin has excelled as a store of value and is likely to continue to do so due to it's geographic and political independence. From an Ethereum stand point, the ability to create stable coins effectively is the biggest threat to Bitcoin's dominance, however stable coins are still pegged to today's geographic and judicial boundaries. Therefore they don't have the same power as Bitcoin and can be shutdown by the appropriate authorities. With on the other hand Bitcoin as long as there is someone on the network somewhere out there it will still keep working. As for Ethereum being deflationary again this is another experiment. The ultimate impact is unknown. The way to think about it is, Ethereum currently processes less than 2 million transactions per day across the entire ecosystem whilst IBM Z an enterprise platform from one provider out of the dozens out there processes 30 billion transactions per day. This means if mainstream adoption was say 1% i.e. 300 million transactions of that throughput (as enterprise will not transition entirely to public blockchain), the impact on the Ethereum network will will be significant across all dimensions. So a monetary advantage at this point, unless supported by favourable regulation is unlikely.

This is not a financial advice. Please do your own research and consider the risks of trading cryptocurrencies.