Bitcoin has recently swung into the $60,000 range, thereby spiking to a new all-time high. The currency is stronger than it’s ever been, and many people are now giving it the attention it’s deserved for so long, but that has left many other altcoins – such as Ethereum – out in the dark.
Ethereum Is Coming Out Swinging
Ethereum is the world’s second-largest cryptocurrency by market cap after bitcoin, and as it’s primary competitor, the asset is consistently seeking to cement its place in the crypto world. Now, with the introduction of Ethereum 2.0 on the way, Vitalik Buterin – the co-creator of the asset and its respective technology – believes Ethereum could potentially give bitcoin a serious run for its money, and that the asset may at some point become the number one digital currency by market cap and fully beat out BTC.
There is one area in which Ethereum has already defeated bitcoin, and that’s in the strength of its distributed ledger technology. Many developers have turned to ETH as the solution through which they will establish either new cryptocurrencies or decentralized applications (dapps). The currency has been highly popular for these activities – a little too popular, as a matter of fact.
In an interview about two years ago, Vitalik Buterin commented that Ethereum had seen such an increase in its relative traffic that the currency was no longer scalable. It was experiencing slow transaction times along with high gas fees, and this was causing many of its customers to turn to the likes of competitors such as TRON to establish and build their projects.
Now, Ethereum 2.0 is slated to put a lot of these problems to rest, but Buterin thinks things could go much farther. In a recent discussion, he claims:
If bitcoin and its fixed supply is sound money, then if you have a decreasing supply, does that make [Ethereum] ultrasound money?
He further stated that if Ethereum 2.0 is fully approved and goes according to plan, it could result in the Ethereum supply shrinking, much like what’s occurred with bitcoin. One of the reasons the latter keeps going up is because we’re getting closer and closer to reaching an ultra-rare point. The currency only has about 21 million units in existence, of which 18.6 million are already in circulation.
Becoming the Dominant Currency
With the introduction of Ethereum 2.0, the currency could become a finite token and experience bull runs similar with those experienced by bitcoin. Buterin says:
If demand to use Ethereum is high enough, then there would actually be more [ether] being destroyed than is being created. It’s not even that far-fetched a possibility. If you look at the transaction fees for the last month, they actually have been on a lot of days greater than the block rewards for that day.