A Messari analyst who specializes in crypto assets predicted Ethereum's tipping of Bitcoin very soon, especially with the launch of Ethereum's ETH 2.0 update.
Ryan Watkins, in a virtual interview with Fintech Today - a YouTube channel focused on the Fintech industry - said he believes Ethereum will soon supplant Bitcoin, taking the position of the leading cryptocurrency with the upgrade to ETH 2.0.
For what reasons ETH could supplant BTC
Watkins, an analyst at Messari, an online database for Cryptoassets that aims to promote greater transparency in digital assets for the general public, also acknowledged the strengths of the first-born of the leading cryptocurrency, noting that: “The strength of Bitcoin on Ethereum as a store of value, it is given by its very predictable monetary policy and highly secure blockchain ".
However, the analyst argued that regardless of Bitcoin's advantage, the implementation of ETH 2.0 could potentially make the Ethereum blockchain more secure, by replacing conventional Proof-of-Work with Ethereum's Proof-of-Stake. .
Furthermore, Watkins points out, “that with ETH 2.0, Ethereum's monetary policy will actually change. Therefore, not only will it be less inflationary than Bitcoin, it will in fact be deflationary. So every year there will be less and less Ether because it is burned ”.
With ETH 2.0, it was noted that any Ether used in the Ethereum blockchain would be burned after use. This causes Ethereum to be more deflationary than Bitcoin's inflationary nature. This policy is made possible thanks to the implementation of EIP-1559 which is expected to go into effect in July.
Watkins argues that this is a potential advantage Ethereum would have over Bitcoin as soon as EIP-1559 is implemented.
However, not everyone is on the same wavelength
After noting both points regarding the potential advantage that Ethereum would have over Bitcoin, he also asked a question: “If Ethereum is safer and has a stronger monetary policy, well, what is the reason why Bitcoin should continue to to grow up? "
Additionally, security and better monetary policy aren't the only trump cards Ether has over Bitcoin, as the Ethereum blockchain is clearly more diverse than Bitcoin. This is due to the ability to build and use decentralized apps (or “dApps”) on the Ethereum blockchain - a possibility that would attract greater adoption of the Ethereum blockchain.
While other analysts like Prakash Chand agree with Ryan Watkins' prediction, there are also those who don't share the same sentiment. One of them is Richard Tall, a corporate finance attorney, who believes that: "... there is still room for both at the moment, and for now, Ethereum will not" surpass "Bitcoin."
The future looks good for Ether and the Ethereum blockchain, and dethroning Bitcoin at the moment seems like a feasible undertaking (quotation of both). However, it is important to note that just last week some Ether miners moved against the implementation of EIP-1559 due to its effect on their income.