Senior research analyst in Messari, Ryan Watkins, predicts that Ether could overtake Bitcoin as the top crypto advantage once its Eth2 overhaul is complete.
Appearing on YouTube series FinTech Today on March 18, Watkins noticed that while he does not understand”when or if” Ether will flip Bitcoin, he does think Ether could emerge as the leading crypto asset in the long run, because of Eth2, saying:
I think that using the change to Eth2 and to proof-of-stake, […] Ethereum may actually potentially be more secure than Bitcoin.”
Watkins also highlighted Ether’s altering inherent economics amid the Eth2 transition, highlighting expectations that Ethereum’s forthcoming burn mechanism is going to result in Ether being destroyed at a rate exceeding the creation of new supply.
“Ethereum’s monetary policy will really change in Eth2 so that it actually will not only be only be less inflationary than Bitcoin, it would actually be deflationary. So then, every year, there is less and less Ether in life since it is being burnt.”
He posted the query:”In case Ethereum is secure and it [has] a stronger financial policy, well then what is the bull case for Bitcoin in this scenario?”
Watkins also noted the”enormous” and”diverse” market being built on Ethereum, implying the network’s booming decentralized program sector will attract new users at a higher rate than Bitcoin as time passes.
“At a certain point, the market of Ethereum starts to draw so much capital, both human capital and financial capital, it is truly a force in the international market,” he said. “The GDP of Ethereum is in fact rivaling many big countries.”
“People can earn livings in this economy,” he added.
Based on Blockchain Center’s”Flippening Index,” which utilizes eight metrics to quantify Ethereum’s strength relative to Bitcoin, Ethereum is currently 65.6% as powerful as Bitcoin — having retraced in an all-time high of 72.3percent in early February.
The indicator suggests Ethereum has already overtaken Bitcoin by node count, trade count and total trade fees.