store: 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.

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

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.

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.

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.

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.

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.

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”.

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.