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

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

< Show Wisdom Collection: ETH vs. BTC: Is the Flippening possible? (EIP-1559 impact)article avatarKarthikeyan 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

article avatarDahiru 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.

article avatarMashell 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.

article avatarTony 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.

article avatarAdvocate 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”.

article avatarAle 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.

article avatarRick 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.

article avatarMajor Mic

It's all speculation 📉📈 until the final 🕯. Forever ♾ 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.

article avatarIfedayo 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.

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

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