Ethereum has been more successful than Bitcoin as a store of value, and could be the dominant cryptocurrency in the future. After all, it is already trading at $300-600 per coin when BTC trades for around $6200 on average.
The “ethereum price” is a cryptocurrency that claims to be superior to the Bitcoin. The academic research paper, which was published by Cornell University, claims that ETH is more secure and has a better chance of surviving in the long run.
Bitcoin’s reputation as the finest store of value network in cryptocurrency has been questioned by Australian university experts, who believe Ethereum is on pace to “become the world’s first deflationary currency.”
Four Australian academics published a study on Nov. 18 that explores how the EIP-1559 update makes ETH a potentially superior store of wealth. Ester Félez-Vias of the University of Technology Sydney, Sean Foley of Macquarie University, Jonathan Karlsen of the University of Western Australia, and Jiri Svec of the University of Sydney collaborated on the study.
During Ethereum’s EIP-1559 update in August, the network burnt a percentage of transaction fees, resulting in the burning of over one million ETH from the circulating supply of 118,583,580.
Transaction fees equivalent to more than half of the 12,000 freshly generated ETH each day are burnt at times, according to the research, owing to EIP-1559. They predict that as Ethereum’s rich ecosystem of decentralized financial dApps grows in popularity, more ETH will be burnt.
Ethereum is already less inflationary than Bitcoin, according to the academics.
“When you annualize the pace of Ethereum creation since EIP-1559, the predicted rise in total Ethereum supply is just 0.98 percent, which is less than half of the 1.99 percent increase in Bitcoin supply that is practically guaranteed during the same time.”
Ether has “greater inflationary hedging qualities than Bitcoin, and Ether may therefore provide a stronger long-term value storage than Bitcoin,” according to the experts.
Due to uncontrolled money creation during the epidemic and inflation rising throughout the year to 6.2 percent in the United States in October, there has been significant interest in Bitcoin’s hard limit of 21 million coins and its appropriateness as an inflation hedge. However, according to the report, investors may want to investigate Ethereum for this reason.
In reaction to Bitcoiners praising BTC as “hard money” or “sound money,” Ethereum supporters have started dubbing ETH “ultra sound money.”
Increased utility in DeFi and NFTs support Ethereum’s three-year high in the ETH/BTC pair
However, proponents of Bitcoin, such as MicroStrategy CEO Michael Saylor, believe it is immensely more secure in terms of hash rate and more trustworthy due to its constant supply and seldom altered protocol. Ethereum has been changing and evolving for quite some time. On Tucker Carlson’s broadcast on Dec. 1, Saylor outlined why he feels Bitcoin is the greatest alternative, saying:
“Bitcoin is the greatest form of property ever devised by the human race.” On Nov. 29, MicroStrategy made another $414 million Bitcoin buy.
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The “eip 1559 mining impact” is a change to the Ethereum Improvement Proposal that was released on December 20th, 2017. It has been argued that this change will make ETH more difficult to mine and therefore less profitable for miners.
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