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

eth-vs-btc-flippening

A common argument for Bitcoin's advantage over Ether is that it has a predictable, limited maximum supply of 21 million. Although EIP-1559 isn't expected to make Ether deflationary any time soon, it does start to reduce its emission as ETH will start to be burned because of the base fee. (More about Ethereum Improvement Proposal 1559 here). This fundamentally restructures Ether's monetary policy and raises several questions about Bitcoin's superiority over Ethereum.
BTC's fixed decreasing inflation is possibly a major aspect leading to its higher valuation. In theory, Bitcoin's controlled supply sets it up to be a store of value. Also, Bitcoin has been around for a longer period than Ethereum. Because of this, investors are confident that it will continue to be successful in the future even after much time has passed. These two attributes put Bitcoin in favor of Ethereum. The other aspects like the number of transactions are less important when it comes to valuing the network than in Ethereum's case, where utility is more of a factor.
Will Ethereum develop a strong monetary advantage as ETH supply starts being burned? Would this be a threat to Bitcoin? Let's dive into curated points of view of crypto passionates - part of Experty users that shared their opinions based on data and their own experience.

Victor Osibajo - 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.

Karthikeyan Ramachandran - Business Analyst /Blockchain Enthusiast

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

Ethereum will introduce a burn function as part of EIP-1559. But will it challenge Bitcoin Marketcap? I don't think so. 1. Ethereum burn will not compensate for its inflation of ether emission so there is inflation but not high as before whereas Bitcoin is deflationary which is a major selling point as the store of value. 2. The number of transactions on Ethereum is about to go down with the advent of layer 2 systems such as zk rollups, polygon etc. So the fall in transactions will mean in fall in Ethereum prices as well. On other hand with Taproot expected on bitcoin, the transactions are about to go high on the Bitcoin network which is expected to push the Bitcoin prices even higher. 3. Also Ethereum faces a challenge from its competitors such as Binance Smart Chain, Cardano, Tezos etc for its smart contract platform that are copying/ stealing dapps and providing to their users at fraction of the cost of what Ethereum is providing. Also even existing dapps are moving to polygon or layer 2 chains which is going to reduce transactions even more on the Ethereum mainnet. On other hand, Bitcoin doesn't face a similar threat from its competitors. So Bitcoin will continue to be crypto gold and Ethereum may continue as crypto oil facing competition other crypto energy producers

Kerem Doğan - Student

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

I do not think ETH will beat bitcoin in value anytime, especially soon. The main reason for this in my opinion is the fact that ETH has so many great alternatives like ZIL, SOL, TZX, EOS, DOT, BSC, ALGO which are way better blockchain with way more potential but way less user for now. Indeed bitcoin also has alternatives but it has pioneered the blockchain industry and accumulated an extreme amount of value and image over the years which is tough to lose.

Bruno Marques - Editor

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

I Strongly believe that EIP-1559 will be a major upgrade to the Ethereum Blockchain as it will make sure it will be competing directly with Bitcoin and maybe it could make the price surpass Bitcoin as well its adoption.

Jon Courtney - Minister

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

Bitcoin is incredibly energy intensive and wasteful. It's leading to shortages of computer chips. Ethereum offers serval advantages over Bitcoin that give it an edge. However, there are still known unknowns with the ETH system that could ultimately make or break it. From my perspective Bitcoin is just more well known therefor more likely to have people get onboard with it. Once they work out the problems in ETH, it certainly will become a threat to Bitcoin. This is most likely a few years down the road. Ultimately, both cryptocurrencies have a place in the world and as with any commodity people will tend to diversify their portfolio. It should be noted that any day now a brand new less energy intensive platform could be introduced. Minerium is a great example of this to keep an eye on, simply because it works the opposite way that bitcoin does, and has some of the same attributes that Ethereum has. Generally the better product tends to win the market, but there are forces at work in various country's governments that are giving aid to certain platforms over others. In other words, geopolitical issues are a large driver of what is adopted and discarded. As of today I notice many people are concerned with China pushing for a digital yuan, which could dethrone a large portion of all blockchain products.

Bhijan Neupane - Full Stack Developer

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

Nowadays, investors and traders are also checking the use-cases of cryptocurrency. If we are talking about Bitcoin and ETH (After EIP-1559 implementation), definitely Ethereum will have more use-cases over Bitcoin as ETH will be approaching ETH 2.0 after implementation of the hybrid system (TIP+ Basefee burning feature). Basefee burning feature will be inspiring to create more scarcity for ETH and it will get more expensive over time. In the case of Bitcoin, it is hard to integrate the blockchain-based applications due to some complexities on the Bitcoin blockchain itself and the disputable energy consumption is becoming another major issue for BTC. IMHO, ETH is not a threat to Bitcoin but it is going to be a dependable alternative of BTC itself.

R F - Engineer

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

I think Ethereum will develop a strong monetary advantage and will be a threat to Bitcoin, not because starts being burned but because Ethereum is developing a stronger ecosystem than Bitcoin. Due to scarcity, Bitcoin is going to be used as store of value. However, due to the potential use cases of smart contracts and the success of ETH 2.0 (this is something to be checked), Ethereum has a brilliant future ahead. From my point of view, Ethereum is giving the right steps to be the world decentralized computing platform that envisioned at its birth.

Mashell Chapeyama Chapeyama - Crypto researcher and writer- Copywriter

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

ETH has the potential to outcompete BTC. There are several factors for that. 1. ETH has more utility than BTC. This is because many DAPPS exist on ethereum network. Currently, the popularity of NFTs push the price of ETH up. 2. Yes, the issue of the introduced deflationary nature of Ethereum will come in. However, assessing this against the BTC is not the best predictor of which will perform better. It is unlikely that the circulating supply of ETH will decrease from over 100 million to less than 21 million. I do not think this factor in so much. If the London upgrade brings down the transaction cost of ETH, that will be a turning point for its price. This is because more people will adopt it.

Ryan Munn - Technology - Finance - Operations - Sales - Marketing - Business Development - Leadership - Coaching - Non-stop Achiever

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

Ethereum will struggle to overtake bitcoin because of the relationship between their market values and the cost competition for decentralized compute which is Ethereum's primary advantage. It is not advantageous to the Ethereum virtual machine economics to have a deflationary policy on Ethereum as it will stifle development as competition experiments with various monetary policies, and uncovers more productive models of monetization. ETH may still become a threat to BTC if the community chooses to treat it more as store of value and reprioritized away from the scalability and economic viability of compute (blockchain 2.0) cababilities.

Dahiru Ahmed - Civil Engineer

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

Ethereum will develop a strong monetary advantage as ETH supply starts being burned, EIP 1559 will increase transactions on the Ethereum network and raise the use of ether, which will likely help bring a wave of institutional investors into the market. This will be a threat to Bitcoin as investors will likely go for ethereum considering it's cheaper and has a high level of bringing return on investment.

Jeffrey Paquin - Compliance Engineer

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

For me quite simply this is a matter of apples and oranges. Bitcoin is a store value item. The problem is just like every other bit of wealth in the world bitcoin will soon be owned and controlled by the 1%. And at that point its value will be determined by them and how they choose to play the market. Ethereum on the other hand, is a utility. It is a proxy mechanism for enabling smart contract interaction. Just like every other alt coin that runs on Ethereum. By design they are not meant to be valued the same as a store of value like bitcoin. Ethereum and every coin that runs on it is by design a proxy mechanism for interacting with a smart contract associated with that project. I can’t understand why people say that the market determines the value of these alt coins. By design value of the token should be determined by the value of the service or product you are receiving from your interaction with that project smart contract. For example, let’s look at the decentraland project and it’s native token Mana. In order to purchase land or wearables or anything else within the project you will need a proxy Mechanism to interact with that smart contract to facilitate your transaction. That proxy mechanism happens to be an alt coin called mana. Without that token you cannot facilitate your transaction. So what is it that gives Mana It’s value? Supply and demand from the market? Supply and demand for Virtual property? Ethereum in my opinion gets its value from the projects that are built on its platform and the ease with which these projects interact with Ethereum. Is this reason I feel that bitcoin should not be compared to Ethereum at all. Apples and oranges. When all of the bitcoin has been mined it will be owned and controlled by the super wealthy. Ethereum will provide more opportunities to gain wealth too more people across the world. The burning of Ethereum in my opinion is not the proper course to follow to gain wealth or value. Lowering the transactions fees and developing Ethereum into a more agnostic Platform Will increase its value and desirability. These opinions are my own based on observations study and research over five years. Most will say that my opinions are way outside the box and don’t conform to typical consensus in the communities. Take it as you will.

Offelia Ogg - day trading, investment, crypto enthusiast

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

Comparing ether and bitcoin is worthless. Ether never overtakes bitcoin in market capitalization. Absurd. I hate ethereum for its transaction costs, for disability of making all in time. For me it's project where devs can talk the talk and then walk the walk

Tony Kunz - 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.

Kripto Man - Cryptocurrency & DeFi Expert

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

No, it will not. First of all, Bitcoin is made to easy p2p transactions for transferring store of value between destinations (wallets) in a permission-less way (no need for middleman) . On the other hand, ethereum was made in the same way but latter introduced smart contracts and dapps to decentralize peoples interaction regarding to information and finance (DeFi). That brought internet 3.0 out for us. Ethereum has no maximum coin supply but Bitcoin has. Ethereum creates coin based on inflation rates to stabilize supply but will create scarcity by introduced fee-burn mechanism. However, Bitcoin is just 21M token and no more will be created. Period.

Lim Chin Hwa - Owner

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

Definitely Yes. The price of Ethereum will be increased as supply being reduced, while the demand still getting higher and higher. A lot of application still built onto the Ethereum contract. With the continuous improvement in terms of scalability, it's believe that it will realized more useful and effective transaction.

Robert Gazvoda - Crypto and startup advisor | Project developer | listing agent

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

Ethereum will never dominate Bitcoin. It may overtake it after capitalization, but Bitcon will still be Bitcoin. However, Ethereum is more likely to be overtaken by any other project working in the area of smart contracts and blockchain mass usability. Bitcoin and Ethereum are two different projects that cannot be compared in this way, as the purposes of BTC and ETH are completely different, just as their usefulness are different.

Ukwuoma Tochukwu - Developer

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

It possibly will cause, the act of burning effectively removes tokens from the available supply, increasing its relative scarcity. And scarcity will definitely lead to increase in prize, reduction in inflation rate as well.

Przemysław Tumidajewicz - Consultant

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

My long term view is that the future looks much brighter for Ethereum, mainly thanks to its better utility. If it becomes deflationary and "green", the outlook gets even better. Bitcoin, on the other hand, the "inefficient cryptocurrency of criminals" as it's often portrayed, remains a good candidate for a broadly televised regulatory demolition. With that said, in my view they both remain more sensitive to arbitrary factors, from regulation to hype and celebrity tweets, than to their own fundamentals. For this reason I tend to look at them technically. Meaning: whatever the news, whatever the upgrades, wait and see what happens, then speculate with care.

Ifedayo Gbenga - Blockchain enthusiast, interested in crypto projects that are solving real world problems.

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

Ethereum as a strong contender of bitcoin has the potential of replacing bitcoin as the number one cryptocurrency. Alot of folks and institutions consider bitcoin to be a store of value which is a solid characteristic of money, as well as a hedge against inflation and that is what it's created for. Ethereum on the other hand operates mainly as a utility token, alot remains to be seen, putting into consideration the various forks and upgrades coming onto the Ethereum network. Bitcoin in my opinion is the King and will remain so for a long time.

Major Mic - Crypto

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

Nutshell, in the crypto space. If a project has a brighter future(not only aspect of technology this time), and the native token has a use case as well. There's a high tendency that the project will last longer than others. Therefore, considering token burn now, since the token has a use case, the lower the supply(when burned) the higher the demand in the ecosystem which for sure will affect ETH price positively. If EIP-1559 could lower the high gas fee experience we are having presently, then there is nothing stopping ETH to boom. Even, more projects will base on the network rather than other network.

Athanasios Sarigiannidis - chem. engineer,trader,investor

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

it will be no actual flippening but only a non pragmatic one. maybe a cycle or 2 down the road BTC goes to is peak and then when alts take over maybe then ETH for a short period of time surpasses market cap of BTC for a week or a month or so. that's all. but this is not flippening. this is just playing in the sand.

Aulia Khairil Anwar - Law Office

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

I don't think ETH threat to other cryptocurrency. As green energy being issue for couple month, it was great move by ETH Foundation to move to other mechanism as POS instead of POW.

Akinpelu Isaiah - Public relation officer

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

Of course definitely. From all indications, it is vivid that bitcoin is far valuable and dependent than Ethereum. However, the supply burning move has proven to be a successful method over time to increase the value of a coin or token within the cryptospace. The burning will definitely contributes to its scarcity, its scarcity will in turn attract more investors with long term view.

stan vlad - designer

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

The general mining profitability should not change dramatically when Ethereum supply starts to be burned. This will lower a circulating supply of ETH and should, in theory, will trigger a a price increase. and by doing so getting a step forward to reach out to where bitcoin has been few years ago

Rick Spindler - Investor

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

The flippening isn’t just possible, it’s probable. Ethereum has the network effect which will not be displaced any time soon. Good carpenters do not just replace their trusty tools. Almost everything is being developed in association with or to the EVM. Bridges, Layers and EIP”s will all just continue the dominance of Ethereum. BTC is not meant for change - and that’s good. Ethereum is.

Ale Limón - ingenieer

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

A simple answer to this question would be No. Despite most of the key indicators pointing to increased utility and network effects, Bitcoin is still king in terms of valuation and dominance. However, the possibility of ETH trading BTC cannot be ruled out and a look at the on-chain data will help to understand the likelihood of the same happening.

giustocosi scalise - grafico

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

absolutely no ETH was created not to be an alternative currency, BTC yes! ergo ETH will never be able to have a higher value of btc despite the update, which in any case will increase its value, but it will never be able to exceed BTC precisely starting from how it was conceived in the beginning and its native characteristics

prof Tochy - Crypto Analyst

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

Cryptocurrency burning itself has advantages which is mostly that of reduction in inflation rate , scarcity cause quantity of total circulating supply will reduce which leads to prize increase in most cases. with this, i think Ethereum will have a good chance being a threat to bitcoin.

Advocate Anthony Williams - BlockChain Polymath

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

Ether is a utility coin/token. So it can’t be compared with Bitcoin, which is presently a store of value. The EIP-1559 will not be able to resolve the “gas problem” for Ethereum rather the burn will have a negative effect on network security. Ethereum can build its monetary advantage by providing better services as “The World Computer”.

Joseph Temi - Blockchain developer

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

There's a high chance of Ethereum coming up with greater monetary advantage by constantly burning the number of tokens, the coin has more use case to BTC and the demand of the token coupled with the burning of existing tokens would certainly make it more of a monetary advantage than Bitcoin.

Nathan Shillingford - Investment Consultant

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

I believe that Ethereum will develop a strong monetary advantage as ETH works as a platform for numerous other cryptocurrencies and as this usage increases so will it’s value.

Roy Duque - IT Manager

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

I think Bitcoin and Ethereum are not direct competitors and each runs its own race. I think they can rather complement each other and thus become stronger. For example, bitcoin already exists encapsulated in Ethereum: keeping BTC as a haven of value and taking advantage of access to more alternatives in ETH. If anything, Ethereum's exposure is such that it can no longer be ignored.

Isaac Reiss - Aspirational Whale

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

My feeling is that BTC maintains a first mover advantage as well as relatively small and FINITE circulating supply. As ETH goes to Proof of Stake, ETH will grow its community further and outperform BTC in the near term. BTC will maintain its valuation advantage for the next few years.

Summary

In the time of Ethereum's London Hard Fork and network upgrade, we can observe a whole crypto world transformation. As most of us know what changes Ethereum Improvement Proposals offer, it's pretty hard to predict how it will impact the future of the whole crypto world. How would it impact other ether coins? How does base fees burning affect gas fees and transaction fees?
The opinions of Experty users about BTC vs. ETH flippening are divided, but the overwhelming majority share thoughts that the London Hard Fork (including the network upgrade) links to increasing the network efficiency, and hopefully the gas price and transaction fees would be predictable because of base fee getting burned.

Feel free to send us any comments, questions, reports, or bright ideas. Let's talk on Facebook Community Group.

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