Whale Believes Ethereum Will Soon Beat Bitcoin To Become ‘Better Digital Gold’ — And Here’s Why
Critics have often taken aim at the world’s second-largest blockchain due to its scalability issues. Truth be told, ethereum has contended with extreme congestion for quite some time now, and this has resulted in exorbitant transaction fees on the network. The bottleneck in ethereum has kept institutional investors from joining the blockchain.
Besides the price actions, ethereum is rarely compared to bitcoin as they were both built with different fundamental economics in mind. Bitcoin is seen as a legit and reliable store of value and a digital version of gold. In contrast, ethereum is believed to be the foundation of the crypto ecosystem. When it comes to the number of decentralized apps (DApps), the number of developers, and daily users, ethereum is the king of the hill.
Nevertheless, one large investor seems to think that ethereum will eventually be on a par with bitcoin regarding its utility. In fact, the investor notes that imminent network changes on the ethereum network could make it “better digital gold” than the king of cryptos.
Ethereum About To Give Bitcoin A Run For Its Money?
Most people believe that bitcoin’s rally is being fueled by a huge influx of institutional money into the crypto market. As a thick cloud of uncertainty weighs on the financial system in the light of the global pandemic, more investors in traditional finance are flocking to the market.
Unlike the 2017 bull market, bitcoin’s current upward moves are characterized by increased institutional participation. This has seen bitcoin blowing past the $18,000 level with little resistance. The cryptocurrency is now just a few dollars away from its $20,000 all-time high. Ethereum has also rallied in recent months but is still a long way from its $1,432 record high.
ETH’s lackluster performance compared to bitcoin can be attributed to the fact that institutional capital is pushing bitcoin’s price higher because of its increasingly popular “digital gold” narrative.
A large ethereum investor who goes by the name Tetranode has suggested that the PoS issuance and EIP-1559 will result in negative inflation. That being said, ethereum will trump bitcoin to become a superior version of digital gold, and institutional investors currently on the sidelines will position in ETH.
If Tetranode’s thinking is anything to go by, ethereum’s unique characteristics will speak for themselves over time.