Ethereum Improvement Proposal 1559 Soon to Go Live. How Does it Affect Bitcoin?

7:19 am, Thu, 8 July 21

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Ethereum is the second-largest digital asset in the world and has a different nature than the flagship cryptocurrency. According to many enthusiasts, Ethereum is more than just a store of value. This is likely to be proved right, considering ETH’s London hard fork is now live on Rinkeby Testnet.

Tim Beiko, one of the leading developers in the crypto space recently posted a tweet.

This upgrade is expected to take Ethereum to an entirely new level, where it might overtake Bitcoin.

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How Can ETH’s New Upgrade Benefit it?

Ethereum’s London hard fork also includes the Ethereum Improvement Proposal (EIP) 1559. This is arguably one of the most important yet controversial upgrades in the history of ETH. This has grabbed the attention of numerous crypto enthusiasts who are excited to see the outcome.

If the EIP-1559 upgrade functions as expected it will change the entire direction of the network. On of the things it is expected to upgrade is the fee structure of the network.

The EIP-1559 is one of the most anticipated upgrades and is expected to turn ETH into a deflationary asset. This means that the buying power will increase over time, causing Ethereum to outperform Bitcoin.

Launching this upgrade is a bold move, however, not everyone is on board with it. The miners, for instance, oppose such an upgrade as it will significantly reduce their profit.

Critics have also highlighted the fact that the total supply of ETH could remain unpredictable even if there is deflationary pressure. This is currently seen as an upside for the second-largest crypto asset. However, it does come with its uncertainties.

Will ETH Overtake BTC?

Ethereum outperforming Bitcoin is one of the most anticipated events in the crypto space. Many enthusiasts including the banking behemoth, Goldman Sachs, are of the opinion that ETH is better than BTC.

Goldman Sachs recently stated that the chances of ETH overtaking BTC as the dominant digital store of value are very high.

According to Goldman Sachs’ statement, Ethereum seems to be the digital asset with the “highest real use potential”. This is one of the reasons why ETH could overtake BTC in a few years.

It has also been noted that 2021 has been better from Ethereum than Bitcoin so far, in terms of performance. This leads crypto enthusiasts to speculate that once the upgrades are up and running the performance of ETH will be off the charts once its upgrades are up and running.

Even though many believe this to be the case, the actual scenario of ETH overtaking BTC is yet to be seen.

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