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- Ethereum and Bitcoin have always fought for supremacy since they’re the cryptocurrencies with the highest market cap.
- Although Bitcoin was the first to break the internet, Ethereum came with full force after developing some of Bitcoin’s features.
Now you can buy Ethereum and leverage its blockchain capabilities, from developing DApps and DAOs to using smart contracts for almost anything possible.
Investors and experts have already discussed this matter and even named it “The Flippening,” which we’ll get into later. What’s sure is that Bitcoin’s future is already decided, since after it reaches its maximum coin supply, users won’t be able to mine it anymore. Although it might take more than a decade for this to happen, it may seem like Bitcoin won’t improve too soon, which is why Ethereum might take its place. On the other hand, Ethereum’s capabilities exceed most coins’ simple asset value.
What is happening to Bitcoin?
Bitcoin was created in 2009 to provide digital financial means in a world where economic crises are expected and customers can’t always rely on these solutions. With Bitcoin, people could make worldwide transactions and avoid third-party financial institutions processing them, boosting speed and minimizing fees.
However, reaching such potential came with certain challenges. First, volatility led to a lack of trust from investors, as Bitcoin’s value surged and clashed so much that some predict its price will either reach millions or go down to zero in the following years. Of course, popularity always triggers cybertheft, despite the solid technologies that protect the network.
Then, mass adoption is far from being approachable since not all nations are ready to foresee the consequences of changing their financial systems. Using El Salvador’s example, Bitcoin is the last thing a developing country needs now. Plus, taxing and regulation policies still need consultation and testing, which hinders the process of adoption. Bitcoin still needs to fix these aspects before becoming the world’s best digital currency.
What’s the deal with Ethereum?
Released in 2015, Ethereum made its way into the mainstream by introducing the concept of smart contracts, DApps and DAOs. Focusing only on decentralization, Ethereum gained popularity by ensuring developers and digital creators have all the knowledge and support to leverage benefits on the network.
Ethereum became a big deal only in recent years when its value increased considerably, and the community got more intertwined in common objectives. The blockchain has numerous technologies and strategies, making it the perfect solution for businesses and regular users. For example, the protocols used on the network help developers base their creations on reliable systems and trustworthy solutions.
One essential thing about Ethereum is its continuous striving for the better. With plenty of updates, the blockchain constantly improves with the community’s help, attracting even more investors for the future. Ethereum slowly solves one of its more enormous challenges, from energy consumption to scalability concerns. The latest update, the Merge, has already dealt with sustainability challenges by reducing the amount of energy required for mining by about 99%.
Upcoming Ethereum upgrades
Ethereum plans on multiple upgrades in the following months, such as the following:
- The Surge will solve one of Ethereum’s most prominent issues: scalability. Considering the increasing network and number of transactions, Ethereum can sometimes become slow. This is why the Surge will Improve rollups and data-sharding approaches;
- The Scourge is planned to minimize the risks related to blockchain technology: decentralization and censorship. Although a solid technological ecosystem, Ethereum, among all other networks, is susceptible to centralization;
- The Verge might be one of the best upgrades because it will boost Ethereum’s TPS. Transactions will be processed faster and more efficiently, making the network one of the most rapid transaction processing ones;
- The Purge also consists of essential updates on the computational power required to mine ether. At the moment, users need solid hardware solutions to mine a decent number of blocks, which is why the Purge will reduce the costs of running nodes;
What is the Flippening?
The Flippening started being discussed in 2017 on platforms like Reddit and Twitter, where most investors and crypto users gather. The term describes the event of Ethereum overtaking Bitcoin, considering the smart contract feature a staple in the crypto world. On the other hand, Bitcoin supporters believe that Bitcoin is the only decentralized cryptocurrency that will rule the market forever.
Considering that around 2017, Bitcoin’s market dominance fell tremendously, the Flippening came to life to remind users that the coin will not be here forever and it can become nothing in a matter of minutes due to its high volatility. Around this time, too, the price of Ethereum increased, getting the interest of many investors and developers.
However, Ethereum faces significant competition
Despite being one of the most innovative blockchain technologies, Ethereum must work hard to overtake the competition. Blockchains like Cardano and Solana have already been praised for providing similar solutions to Ethereum, but with smaller fees and faster transactional speeds.
For example, Cardano uses the Ouroboros Consensus protocol and bases its knowledge on scholarly academic research, incorporating peer-reviewed and evidence-based methods. On the other hand, Solana uses PoH (Proof-of History) that leverages a cryptographically secure function, a unique feature of the cryptocurrency. It has better transaction speeds than Ethereum and even more enhanced security measures since the network is scalable at its core level. On the contrary, Ethereum needs Layer-two solutions to make the blockchain efficient.
Overall, Ethereum is trying to solve its issues, but it’s a matter of time before it succeeds fast enough. In the meantime, its competitors might discover better practices and strategies. Still, considering its popularity, this is less likely to happen.
Final thoughts
Ethereum and Bitcoin are massive cryptocurrencies that leverage incredible network capabilities. However, Bitcoin’s purpose is mainly being used as a store of value. At the same time, Ethereum has the advantage of smart contract features, through which investors can benefit from remarkable DApps, DAOs and even NFTs that developers create efficiently. Ethereum might overtake Bitcoin, but we’re unsure about the timeline, so we’re waiting to see how the two blockchains will further develop.
