Will ETH price surpass BTC price?

1 yr
LeoFinance
4 Min Read
779 words

In the last few days, we have been seeing that the price of ETH is pumping hard. Some of my friends asked me this question. Indeed this is an interesting question and I'm sure many people might have the same question in mind. Those who asked this question to me are pretty new to the crypto world and they are confused if they should go for investing in ETH or BTC. That is when I started thinking if there could be a possibility for this.

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Looking at the rate at which ETH is pumping, I myself had this thought whether the price of ETH would surpass BTC at any point in time. Even though there is a small possibility here, I personally think that it will not happen anytime soon. I would like to share my view on that and provide a few reasons for the same in this article.

BTC is popular than ETH

The first reason that I can think of is the popularity. BTC is still very popular among people because it is the first-ever cryptocurrency in the world. But when it comes to using cases, ETH has more use cases compared to BTC but people still invest in BTC and even think of that as pride.

There are still big holders who are holding a big bag full of BTC and have never thought about selling it or exchanging it for other cryptocurrencies. People still have big hopes on BTC and there is a belief that the price of BTC could reach 500k in the long run and around 100k in the short term. We are also able to see people purchasing BTC and holding them even at the current market price.

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If we look at that popularity aspect, ETH has a long way to go. Though it is popular among the modern crypto people, the old crypto folks still prefer BTC and one big reason could be the limited supply and pride. The newbies also first get into BTC and then switch to other cryptocurrenices after knowing about them.

ETH transaction fees is a hindrance

I personally think that ETH transaction fees is insane. Until we have a decent solution for it, we are not going anywhere. I'm able to see that in spite of all those heavy transaction fees, many developers still prefer to create smart contracts on ETH even though there are alternative options available. Smart contracts on ETH are one of the biggest reasons why the price of ETH is pumping hard. This is what we saw in BSC as well. After the recent increase in the number of smart contracts on BSC, the price of BNB tokens pumped hard.

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Every chain has its advantage and disadvantage. I see high gas fees as a big disadvantage on ETH and centralization as a big disadvantage on BSC. When we have a few free transactional blockchains available, people might look for free options in the future than breaking their heads with heavy fee blockchains. I'm not bringing the Bitcoin network for the talk because we don't have any big real-world use cases with BTC except for the fact that it is a pride coin where every individual in the crypto world would like to hold a little in their wallet to show it to their kids and grandchildren.

Supply is an important criterion

Yes indeed, this is an important criterion. BTC has a very limited supply of 21 million coins. The total supply cannot exceed 21 million coins and that is one of the biggest reasons why people think it can get more valuable as time goes. There will be lots of people losing their wallets, people die and people might even forget their private keys. With these factors gradually the availability of the coins becomes less over the course of years.

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Comparing this with ETH, we have a small problem there. The supply is unlimited. In any case, if people want to hold BTC, it will mostly move from one holder to another holder. But in the case of ETH, new coins will be created every now and then based on ETH's inflation and chain rule. Today, it can be okay but in the long run, there will be too much supply and less demand bringing the price down. But there will also be wide distribution of the tokens.



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ETH transaction fees is a hindrance

@bala41288
It is truly a hindrance and that is why a solution is needed ,with such a hindrance I do not think that ethereum will surpass Bitcoin...


Posted via proofofbrain.io

1

I am sure Vitalik and other team mates would come out with some solution that would help to reduce gas prices in near term. But its still wishful to think that the ETH prices would surpass BTC prices


Posted via proofofbrain.io

5
1

After Berlin upgrade Eth transaction fees now are twice or more lower than a month ago (32 gwei right now). And Eth supply will start to reduce after Berlin hard fork (EIP 1559), part of transaction fees will be burn.

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1 yr (edited)

You know what - BTC has a very very amazing and long history and you must read about them like they were enthusiasts minting BTCs in silver and gold, it was having private key inside. That BTC the gold one is very very valuable!!

Yes, BTC is a must must have...but its actually considered in many schools of thought as digital gold, and a better gold. At these uncertain economic time fiat currency can collapse as has happened with Venezula...so that time you need to protect your investments with a hedge, gold was one now BTC could be another.

ETH, one cannot compare both ETH and BTC, we both have issues with ETH coz of fees, but you have to see that it has wide developer community, whales I mean institutional inestors are pouring money into ETH... plus Vitalik Buterin still is reliable and we can hope that scalabity issues are taken care off...yeah I know its been a while but next 2 years we will know Proof of Stake Ethereum

Plus already these layer 2 solutions are working, Matic is now its Polygon right.

Also other protocols have come up and they look awesome, see Cosmos Blockchain so many cool DEFI projects are coming up there - where cross chain swaps are already taking place like thorchain and that BSC is built on cosmos only.

So we can't overlook that...definitely its going to get interesting.

But ETH and BTC values are set to only grow.

You know in 1990's if people invested in DOT com business stocks and held them in another 15 years time they would have been super rich, same in BTC and ETH.

So, yup newbies should buy up BTC and ETH and there is room for ETH to grow still in this current bull run but cryptocurrencies as other asset classes have risks, subject to market conditions so can't just invest and hope to get rich right now, price corrections will come up but a little bit of a start can be made.

My bro asked me weather to sell ETH, I said no... now even ALT coin dominance has not peaked up to 60-65% plus, long term gaurenteed price appreacition is there on these cryptos so Hodling some portions of it and selling to take profits to buy back dips will work well I guess.

I don't know actually, I learnt that I am no trader but a HODLER...meaning I am not street smart (my nature) so selling at tops and buying dips would have got my more cryptos...

Also ETH supply shortage is there now, because of staking done for that ETH2...so its bullish for ETH even now, not late to buy it,

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