Bitcoin and Ethereum are two of the biggest cryptocurrencies in the market right now. While Bitcoin is a simple cryptocurrency, Ethereum goes beyond that. That is why I think the future of Ethereum is much brighter and research already suggests it will surpass Bitcoin.
Although Bitcoin is currently the leader in currency volume in the market, certain numbers suggest Ethereum is closing in. So, let’s have a look at what that means for Ethereum and how you can capitalise on it.
What Factors Put Ethereum Ahead in the Game?
ETH is a major cryptocurrency that might someday soon dethrone Bitcoin as the market leader. The following are some of the reasons why this might happen:
Innovation is the name of the game in the cryptocurrencies market. To this end, I believe Ethereum has a much more sophisticated development setup including more nodes. I also think its impending Casper update will make mining Ethereum much easier by using a Proof of Stake algorithm. This means that anyone who holds ETH will also automatically generate more ETH.
Bitcoin mining is frustratingly slow. It takes about 10 minutes to mine 1 Bitcoin. In comparison, Ethereum mining and transactions are way faster at 14 seconds per coin. While the blockchain confirmation speed of Bitcoin can increase with its Lightning Network, that is still in the future.
Right now, you need to pay Bitcoin over $ 7 to get transaction confirmation within 24 hours and to have the confirmation in 20 minutes, above $25. In contrast, Ethereum takes only $ 1.59 for confirmation in 30 seconds. Clearly, for most micro-transactions, Ethereum is the choice.
The popularity of Bitcoin has led to it being forked by many new cryptocurrencies with some great added features. This means that Bitcoin is not the sole provider any more. In contrast, Ethereum is still to be cloned as much as Bitcoin. This means its services are still unique and will remain so until a major fork emerges.
Will The Flippening Happen?
The Flippening is the foreseen event of Bitcoin being usurped from the top-spot in the market. With the above in consideration, I can say that it is only a matter of time before this happens. It is possible that Bitcoin might retain its popularity for some time. Yet, if it does not innovate and deliver an exceptional UX, then we may very well see a paradigm shift.
With that said, your Bitcoin investment is not in jeopardy of devaluation just yet. However, it would be wise to diversify your investment portfolio to include ETH.