Over the past week, talk surrounding bitcoin has been invigorated considering the world’s number one digital currency by market cap has shot up to just under $40,000 for the first time in well over a month. As good as the news is, it is easy to allow bitcoin to overshadow Ethereum and many other heavy hitters within the crypto space, but one panel of experts refuses to turn away from competing altcoins.
Ethereum Is Climbing Up the Financial Ladder
Ethereum is the second largest cryptocurrency by market cap and the number one coin going head-to-head with bitcoin. At the time of writing, the asset is trading for approximately $2,300 per unit, and the experts in question say that the currency could potentially double its present price to about $4,600 by the end of the year. They are rather confident that Ethereum will potentially leave bitcoin in the dust over the coming months.
One of the panel members is Daniel Polotsky, the founder of crypto ATM company Coin Flip. In a recent interview, he said:
Ethereum’s price largely follows bitcoin’s halving cycles, although that relationship may begin to decouple as time goes on, and as Ethereum continues to develop use cases that bitcoin cannot achieve. Its price may grow at a faster rate than bitcoin’s.
One of the reasons Ethereum remains so popular has to do with its smart contract capabilities. The network offers the technology necessary to create a wide array of decentralized applications (dapps) and many of the new digital tokens entering the space.
Furthermore, ETH has undergone a few changes with the release of ETH 2.0, set to occur later this year. For one thing, several Ethereum tokens that have been put out of commission are set to be burned, which according to co-founder Vitalik Buterin, will make the network safer and far more efficient.
Forrest Przybysz – senior crypto analyst at Token Metrics – agrees, commenting:
Ethereum’s proof of stake later this year or early 2022 will result in Ethereum’s supply becoming deflationary and will be equivalent to multiple bitcoin halvings [cuts to bitcoin’s supply of new tokens] in terms of supply restriction. This will make it a better store of value than bitcoin in addition to all the utility it provides that bitcoin does not have.
A final complement came by way of Martin Frohler, the chief executive of crypto brokerage Morpher. In a statement, he said:
Ethereum has the potential to power the future global financial infrastructure.
Not All Thoughts Are Good
Despite all the positive vibes, not everyone on the panel was crazy about Ethereum, and some even felt that the asset would never amount to anything when compared with bitcoin. John Hawkins – a lecturer at the University of Canberra in Australia – stated:
I think Ethereum is a speculative bubble and will get dragged down by bitcoin.