The founder of Euro Pacific Asset Management, Peter Schiff, was the last to revive the age-old question of which cryptocurrency is better as a store of value, amid the two queens Ethereum and Bitcoin, and he reiterated his opinion in a tweet:
Bitcoin pumpers claim that #Bitcoin is a better store of value than #gold because it's price has risen more than gold's price. By that logic #Ethereum is a better store of value than Bitcoin. If Bitcoin is gold 2.0 then Ether is Bitcoin 2.0. Has Ether already disrupted Bitcoin?
— Peter Schiff (@PeterSchiff) December 6, 2021
The expected boom in Ethereum
In fact, many analysts have been positive about Ethereum for some time now, predicting that the cryptocurrency created by Vitalik Buterin will soon boom. On the other hand, in recent weeks Ethereum has clearly outperformed Bitcoin on the markets, surpassing the $4,000 mark several times.
At the moment, the issue would not seem to have any logic yet, considering that Bitcoin’s capitalisation is more than twice that of Ethereum. But if we think outside the perimeter of pure financial speculation, the very different characteristics of the two cryptocurrencies make Ethereum perhaps the one with the best prospects for the future.
Ethereum was created in 2013 and is an open-source platform that helps to develop and implement decentralized applications thanks to its blockchain and the innovative form of smart contracts that govern every transition between parties.
Many think that Ethereum is better than Bitcoin in terms of its real-world adoption. Bitcoin, as a payment instrument, still struggles to find a place in finance, except in limited cases. Ethereum represented a real revolution for the blockchain world, and its example has been followed by other projects, such as Solana, Cardano and Polkadot.
And the fact that all of these cryptocurrencies are considered among the most interesting projects speaks volumes about how disruptive Buterin’s idea has certainly been in the crypto world. While Bitcoin is a simple digital currency, Ethereum is a blockchain-based network that also manages the currency of the same name, thanks to which it is possible to fuel transactions on its network.
Ethereum is better than Bitcoin as a store of value: the analysis
Recent research by the Sydney University of Technology has shown that Ethereum is better than Bitcoin as a store of value, despite Bitcoin’s limited coins in circulation, as opposed to Ether. According to Australian researchers, Ethereum would be a much more effective anti-inflationary tool than Bitcoin.
The report reads:
“Annualizing the rate of Ethereum creation since EIP-1559, the expected increase in the total Ethereum supply is only 0.98%, being less than half the 1.99% increase in Bitcoin supply which is almost certain in the same period”.
This summer was the turn of the investment bank Goldman Sachs to express very flattering opinions on the prospects of Ethereum. The analysts of the American bank wrote in a report that the blockchain with the highest “potential for use in the real world” is precisely Ethereum. According to the analysts, this would therefore make ETH a dominant digital store of value even compared to BTC.
“Ether currently looks like the cryptocurrency with the highest real-world usage potential because Ethereum, the platform on which it is the native digital currency, is the most popular development platform for smart contract applications”.