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One of the oldest and most interesting debates in the crypto space revolves around Ethereum and Bitcoin. Many ETH enthusiasts believe it will outperform the flagship cryptocurrency at some point. While the price of Bitcoin is quite higher than Ethereum, a recent report suggests that its store of value might not be.
Four Australian researchers have questioned Bitcoin’s store of value and also discussed the merits of Ethereum’s EIP-1559 upgrade.
Bitcoin is currently trading above the $56k price mark, whereas, Ethereum is trading slightly above $4,500. However, you should know more about the report before you decide which cryptocurrency to invest in.
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Does the Australian Report Somewhat Favor Ethereum?
Four researchers in Australia, from different well-known universities, came together to work on a report. The focus of the report was on the newly launched EIP-1559 upgrade for the Ethereum network.
This upgrade was launched in August and burnt over one million ETH and a portion of the transaction fees.
Considering the differences caused by the EIP-1559 upgrade to the Ethereum network, the research suggests that ETH could become the first deflationary currency in the world. This would indicate that it surpasses the store of value of Bitcoin and offers a better one.
According to the report, transaction fees that are around 50% for the 12,000 ETH minted recently are burned, thanks to the upgrade.
The Ethereum ecosystem has taken a positive turn, which has also increased the demand for the most popular altcoin. Due to this reason, more ETH will likely be burned with time.
The research stated:
“Annualizing the rate of Ethereum creation since EIP-1559, the expected increase in the total Ethereum supply is only 0.98%, being less than half the 1.99% increase in Bitcoin supply which is almost certain in the same period.”
It has been noted that Ethereum is already less inflationary than the flagship crypto asset and would, therefore, offer a better and “superior long-term value storage than Bitcoin”.
According to the report, Ethereum can very well be a good replacement for Bitcoin.
Due to the pandemic, the inflation in the USA increased to at least 6.2% just in October. Because of the rising inflation and Bitcoin’s suitability as an inflation hedge, the demand and interest towards BTC’s cap of 21 million coins were seen to surge quite high.
However, the report suggests that Ethereum can be used for these purposes as well and investors should consider it.
What Should Crypto Investors and Traders Know?
Despite this consistent debate, both Bitcoin and Ethereum have their ups and downs.
Bitcoin is considered to be more secure and dependable than Ethereum considering its:
- Hash rate
- Unchanged supply
- Rarely changed protocol
Ethereum, on the other hand, has also been evolving consistently and has even seen a change in issuance.
Therefore, the crypto asset you choose to invest in is more a matter of personal preference. However, make sure you choose the lowest fee crypto exchange, regardless of the digital asset you purchase.
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