As everybody in crypto knows that the industry partly thrives on buzz and hype, as much innovative project development. And with Bitcoin being quiet most of the time, there is an immense opportunity for other fast-paced projects to shine.
Please note that this does not mean that Bitcoin will lose out in the long run. If we talk about the crypto space in a span of a decade, Bitcoin is still the most likely to remain dominant. But for the next years, we might see the flippening occur. Unlike Bitcoin, Ethereum undergoes upgrades every few months and a few protocol changes almost every month or so.
Just look at its fork history. And in the last year, the Ethereum community has made great strides in the right direction. One thing is certain, the Ethereum developers have been very productive. Ethereum 2. Phase 0 has undergone multi-client testnets and should be released sometime in Once Phase 0 is released, many are expecting the altcoin to pump hard.
But it is highly unlikely that Ethereum could overtake Bitcoin just yet. After all, it would take time before Eth 2. On a positive note, there is another way for Ethereum to scale without the upgrade, and that is through rollups. The so-called Optimistic Rollup is a layer 2 solution that will allow Ethereum to scale to thousands of transactions per second. Its functionality is similar to how the Lightning Network allows Bitcoin to scale to near-instant transactions at near-zero fees.
Optimistic Rollup will enable Ethereum to scale to around 2,, tps. In fact, the network has experienced congestion in June while gas fees have surged. This even led miners to increase the maximum gas allowed per block. It means that Ethereum is being adopted. Two years ago Ethereum-powered decentralized exchanges like Etherdelta were severely underutilized.
Therefore, the value of Ethereum was a little flimsy then. With that being said, they are not on par with large trading platforms like Binance yet. But they are improving fast in terms of liquidity and speed. We can only expect these applications to become better over time, which will result in more user adoption. And more user adoption results in higher valuation. The network effect. Besides Optimistic Rollups, there are several layer 2 solutions available today.
There are essential differences to what each does and as the market continues to mature the value of both Bitcoin and Ether will be driven by new factors to those that currently exist. In recent times we have seen this happen, with the market capitalisation of all cryptocurrencies taking a bit of a hammering.
This has been due to UK mortgage companies refusing to accept funds generated from certain cryptocurrencies as deposits for properties, to concerns about further governmental bans in jurisdictions across the globe. Ether is simply a product of Ethereum. Ethereum is actually a huge computing network which enables anybody to build a decentralized application. A business, if it decided that it needed a blockchain developed solution, could employ a programmer to build that on the Ethereum platform.
Ether, while associated with the Ethereum platform, is capable of performing the same function as Bitcoin. Whether or not it does so is simply a factor of the parties to any transaction determining whether or not Ether has any value to them. As we have seen, governments are beginning to put restrictions on cryptocurrencies, concerned that their citizens are speculating on something which their governments perceive they do not understand.
If governments put restrictions on cryptocurrencies including Ether, businesses will still be able to use the Ethereum platform for things such as payment services, which banks and many other entities are doing already. The biggest threat to Bitcoin remains Bitcoin itself, with the continuing creep of government regulation and the ongoing tag of financial crime driving market behaviours.
Ether has the advantage of being associated with Ethereum, and Ethereum does what Bitcoin cannot do, and came to be because of the limitations and single function of Bitcoin. Connect with us. Media Placement Opportunity With Promotions. Here is How. Related Topics:. Continue Reading. This is not to be considered as financial advice and should be considered only for information purposes. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances.
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Get Bitcoin, Ethereum, Dogecoin, Shiba Inu and 30+ other crypto assets in a What I ended up having to do was to refresh browser after. Interestingly when India bans crypto, #Bitcoin #Ethereum will trigger an unstoppable bull. It wouldn't pass the shitcoin giggle test. I don't think that Ethereum will outperform Bitcoin no matter how it develops theres a possibility that it will supass the Bitcoin pass.