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

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

Full-stack 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.

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.

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.

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.

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