Bitcoin Vs Ethereum 2.0: Who’s Really Leading Crypto

Bitcoin Vs Ethereum 2.0: Who’s Really Leading Crypto

By David - February 15, 2021

Bitcoin is the sun and every other crypto are planets being pulled by it. If bitcoin goes up or down, every crypto has no choice but to follow suit.

However, in our solar system, the planet Jupiter has become big enough to no longer orbit the sun — Ethereum is already showing signs of becoming the Jupiter in crypto.

But here’s what makes things interesting...

It’s almost impossible for a planet to become as big as the sun. In fact, planets are classified as failed stars.

In crypto, there are no limits that stop a coin from rivaling bitcoin.

So now, we look to reasons why people feel Ethereum is the true leader of crypto, and of course, reasons why Bitcoin is forever the king of crypto.

Ethereum’s Use Cases

Etheruem is capable of:

  • Payments
  • Decentralized wallet
  • Smart contracts
  • Escrow
  • DeFi (decentralized finance)
  • Tokenization of real-world assets
  • Identity
  • Politics/voting
  • Healthcare
  • Gaming

Bitcoin is capable of:

  • Payments
  • Decentralized wallet

Ethereum’s list of use cases is ever-growing mainly because it’s at the center of innovation in crypto.

Without Etheruem, we wouldn’t have the ICO era and the DeFi explosion. These inventions were responsible for bringing mass amounts of attraction and liquidity into crypto.

This is why more than 10% of the top 100 performing cryptos on CoinMarketCap are all on the Ethereum blockchain.

Plus, one of Etheurem’s top soldiers (Yearn Finance) has experienced an ATH of $43K, and now it’s currently rivaling the price of Bitcoin. That says a lot.


Ethereum 2.0

  • Officially switching from Proof of Work (PoW) to Proof of Stake (PoS)
  • Capable of 100,000 transactions per second as opposed to its current 30 transactions per second
  • Will be more secure than Ethereum 1.0 due to different validator requirements

What’s also significant about this upgrade is its timing — it started recently in a bull market where Bitcoin reached its new ATH.

The mainstream is super interested as they were in 2017. Plus, bitcoin is constantly in the headlines which only means more liquidity in crypto.

This is the perfect opportunity for Ethereum to steal Bitcoin’s attention.

The public could see this upgrade as a 2nd opportunity to experience the same or even better gains early Bitcoin investors received.

All it takes is a strong price movement for this narrative to take form.


Bitcoin Has Already Established Itself As Digital Gold

Just because knowledgeable crypto users see the advantages of Ethereum, that may not be enough to stop the momentum Bitcoin is receiving through its price growth.

Plus, strong speculative theories such as the Bitcoin S2F ratio suggest that Bitcoin is heading to $1,000,000. Its recent price growth to $24K is confirming these narratives.

Ethereum doesn’t have any long-term price prediction formulas known to the masses.

So, even if Ethereum is more functional, the potential ROI of Bitcoin is too attractive to not take your eyes off it, and prefer it over any other crypto, instrument, or commodity.

More eyes on bitcoin will give it the adoption advantage too.

Institutional investors are already spotting this which is why companies like Grayscale and MicroStrategy are buying bitcoin in the billions.

Then again, the CME Group have announced their plans to launch Ethereum Futures in February 2021.

When the CME officially launched Bitcoin Futures, it reached an ATH of $20,000. Now, with Ethereum Futures soon to be launched, could we see a crazy price move that makes Ethereum worth thousands?

That would officially be the point when Ethereum finally goes on its own orbit.


Bitcoin Is On The Ethereum Blockchain

This is possible through WBTC (Wrapped Bitcoin) — A bitcoin-backed stablecoin.

According to the founder, the purpose of WBTC is to bring mass amounts of liquidity to the Ethereum blockchain and decentralized projects.

The fact that Etheruem can incorporate the largest blockchain ledger into its ecosystem speaks volumes. Other blockchain ledgers would immediately be congested if they tried to pull this off.

Anyway, WBTC is special because it allows crypto projects to base their projects solely on Bitcoin while avoiding the productivity issues real bitcoin presents — slow transactions and large fees.

This is revolutionary.

Bitcoin will have access to almost all of Ethereum’s current and future features.

Despite this initiative happening on the Ethereum blockchain, it certainly does help keep Bitcoin alive and propel its momentum.

So, WBTC is a factor that could keep Ethereum permanently second to Bitcoin.


Bitcoin’s Supply Is Limited, Ethereum’s Supply Isn’t

Ethereum’s unlimited supply can be a red flag for long-term investors.

Almost everyone would prefer to invest in a crypto that doesn’t plan to liquidate its value indefinitely.

Also, there’s no formula or projection that educates us on how Ethereum will continue to meet the demands of its inflation. The good thing is that Ethereum is meeting its demands, and with the world going digital, it sets Eth for much more use cases.

However, speculation of Ethereum’s future potential still can’t guarantee its certainty to outperform its yearly inflation.

What we can guarantee is that bitcoin’s supply is fixed to 21 million.

This gives bitcoin the easier road to be more valuable.

Ethereum will always have the threat of losing its value.

But with the invention and purpose of WBTC, time will only tell if its liquidity and volume acts as the perfect long-term insurance or hedge to Ethereum’s unlimited supply.

WBTC has already established itself in the top 30 of CoinMarketCap so its clear that the innovation in crypto is already utilizing WBTC.


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