Connect with us

Hi, what are you looking for?

ELEVENEWS

Bitcoin

7 Reasons Ethereum Can Surpass Bitcoin, According To David Borman

The first reason for Ethereum outperformance is because Ethereum is programmable money.

“Bitcoin does a pretty fantastic job of being a store of value, often referred to as digital gold. However, this is about where bitcoin’s functionality ends. Ethereum offers full smart contract support and is positioned to be a global computer. This means that Ethereum does what bitcoin does and so much more”, the analyst says.

Eth is effectively a form of programmable or smart money and contracts. It only allows for transfers of funds when certain conditions have been met. Because this can all be automated and enforced by blockchain, these contracts represent a huge step forward over traditional pen and paper contracts which could be broken easily and required outside legal entities to enforce.

Decentralized Finance is the second reason. While bitcoin has definitely revolutionized global payments, DeFi stands to turn fintech on its head. This space has absolutely exploded in 2020 and currently the vast majority of all DeFi transactions happen on Ethereum.



The third reason for Ethereum’s success is that it is moving beyond DeFi.

“While financial services are one of the most obvious and attractive right now, the larger world of games entertainment social media and more are all slowly being prepared as well. Platforms are already in existence that are using Ethereum’s blockchain to power various types of transactions and this has potentially huge implications for the future of the entire internet”.

The crypto KOL takes MetaMask and Avalanche as prime examples.

The proof-of-stake consensus is also another reason for Ethereum surpass: “Speaking of environmental concerns, Ethereum offers more to the eco-conscious crowd than just tokenized carbon offsets. Keep in mind that the Ethereum 2.0 upgrade is going to switch the network from proof-of-work to proof-of-stake. It isn’t just faster and more scalable, it is also notably more energy-efficient than proof-of-work”, the trader explains.

The clear scalability plan is also Ethereum’s advantage.

“Ethereum already has its roadmap and is beginning to implement it. Meanwhile, Bitcoin has a variety of possible solutions but no single clear path that is generally agreed upon to work because the community has largely rejected increasing bitcoin’s block size and changes to the code base are slow to be approved”.

The fifth attribute is the mutual success theory ‘Bitcoin success can be Ethereum’s success”.

“Ethereum network is beginning to use bitcoin as a form of a reserve asset. Thanks to tokenization, there’s already over 175,000 bitcoin locked into the ETH blockchain, also refer as wrapped Bitcoin”.
The currency crunch is the last reason mentioned in the video.

“The major takeaway here is that the supply and demand balance is shifting. It can be argued whether the rising price is pushing up demand or the rising demand is pushing up price. But it’s basically a chicken of the egg scenario, they rise together as the public opinion shifts. It’s pretty obvious that more and more people are waking up to Ethereum. Take for example the fact that just recently, Amazon web services began offering Ethereum blockchain access. Now AWS customers can remotely spin up their own Ethereum node and begin interacting with the network directly”.

News Source

Advertisement
Advertisement

Copyright © ELEVENEWS