Satoshi Nakamoto created Bitcoin over eight years ago, and there is no cryptocurrency, which can exceed it. But Ethereum changed everything. Today, many people predict that Ethereum will catch up with Bitcoin.
Speaking about the situation in numbers, only the last four months the total contribution of Bitcoin in the global cryptocurrencies capitalization was reduced from 78 to 48 percent. A parallel course, the Ethereum is growing its influence taking 26% of the Fintech total budget.
Before proceeding to advantages and disadvantages, it is necessary to list common features:
- both currencies are mined and sold;
- you need special wallets for storage codes-keys, which ensure the possession;
- cryptocurrencies trading, including Bitcoin and Ethereum, occurs on platforms exchanges;
- the cost of both cryptocurrencies depends on demand and supply, that is subject to spikes because of industry events.
In the middle of June, the difference in market capitalization of Bitcoin and Ethereum has decreased to approximately $8 billion. This caused the admiration of many market participants. They expected that Ethereum would overthrow bitcoin from the pedestal of a leader. After five months, the market capitalization of the two main cryptocurrencies increased by $96 billion. It says that all the time bitcoin is moving forward, and the Ethereum continually failing.
The concept of "flippening" was created specifically to explain the fact of primacy over Ethereum lagging behind the overall growth of the Bitcoin. At the beginning of the year for one coin was worth $9, then, the cryptocurrency has reached almost $400. But many digital coins started to grow, and therefore the throne of the Fintech sector can take either Bitcoin or Ethereum.
You need to understand that it is not a standard cryptocurrency. With this system, you can use smart contacts, on which modern applications base. Ethereum platform can effectively carry out ICO, trade stocks, provide financing to the funds and carry out other commercial activities. Thus, the payment network includes some advantages that Bitcoin cannot offer. In future, Ethereum will probably implement much more transactions.
Ethereum buyers are active. It is for both fundamental and technical reasons. A month ago Ethereum had hard fork Byzantium. A professional event was conducted with the aim of improving network performance and optimizing security systems. Initially, there are two stages of hard forks, and the second is "Constantinoples", which will be at the end of the first quarter of 2018.
It is noteworthy that during hard forks correction between Ethereum and Bitcoin has expanded, but later declined amid another wave of Bitcoin. However, the signals have already received: Ethereum is promising, but the development of the upward trend of its price will take time and patience because of the constant changes in the market favorite coin – Bitcoin.The total number of issued cryptocurrencies will amount to 21 million digital tokens.
One of the main benefits of Ethereum is called high-speed operations. The network creates transactions blocks five times in a minute. Transactions conduct their protocol Ghost, created by a team of Ethereum developers. Thus, it becomes possible to carry out instant transfers, while the main competitor updates blocks only six times per hour.
Will Ethereum catch up with Bitcoin?
It's hard to compare which one is better – Bitcoin or Ethereum. They have never been in the rank of direct competitors. Bitcoin is conceived as a payment system, whereas it uses tokens to implement smart contracts.
It is worth considering that Bitcoin, in fact, is deflationary because there is a strict issue limit of coins in this payment system. The total number of issued cryptocurrencies will amount to 21 million digital tokens. Also do not forget that a significant number of bitcoins are lost in the initial stages of cryptocurrencies existence when the value of "digital gold" was meager, while the owners of the Ethereum were well aware of its possible value.
In case we are talking about inflation, as the annual release of these funds is 18 million coins. Thus, if we consider the money, in the long run, the price of Ethereum coins will fall, and the demand for Bitcoin will increase. Also, at this time number of coins more than six times than the tokens number of Bitcoin.
Considering the list of the significant cryptocurrencies in the long term, Flippening has all chances for implementation. Now, this process is discussed quite often. And if the current situation continues to evolve, Ethereum will be worth more than Bitcoin soon.