- 1 What is Ethereum?
- 2 Why Ethereum May Surpass Bitcoin In 2021
- 2.1 Ethereum May Surpass Bitcoin in 2021 Because It’s Faster
- 2.2 Ethereum May Surpass Bitcoin in 2021 Because of Smart Contracts
- 2.3 Ethereum May Surpass Bitcoin in 2021 Because It Acts Like a Real Currency
- 2.4 Ethereum May Surpass Bitcoin in 2021 Because of DApps
- 2.5 Ethereum May Surpass Bitcoin in 2021 Because It’s Going Green
- 2.6 Ethereum May Surpass Bitcoin in 2021 Because of the World Computer
- 3 Cryptocurrencies are Experiencing a Boom
Ethereum is known as the second most popular cryptocurrency. After Bitcoin, it has the highest total value and it’s experiencing a boom in value at the moment. However, Ethereum is far more than just a cryptocurrency. Its potential and capabilities far outweigh those of Bitcoin.
A combination of factors has led Scott Jason Cooper to say that Ethereum may surpass Bitcoin in 2021. These factors, range from Ethereum is faster than Bitcoin, to Ethereum’s capability to generate smart contracts.
So, here is a crash course about Ethereum and its functionality and why people think it may surpass Bitcoin this year.
What is Ethereum?
Ethereum is a Blockchain, or a decentralized ledger, which is used, like Bitcoin, to transfer data. This data is Ethereum’s own cryptocurrency Ether. However, Ethereum can also be used to create smart contracts and DApps (decentralized apps). These possibilities have intrigued thousands of people around the world.
Ethereum thus holds much more promise than Bitcoin value. It’s not just a transfer system for digital currency, it can actually create real value around the world. In that regard, it is poised to eventually surpass Bitcoin. That time may actually be coming soon.
Why Ethereum May Surpass Bitcoin In 2021
Ethereum has a greater intrinsic value than Bitcoin. That’s just a fact. It doesn’t have to do with its market value at the moment. The volatility of the cryptocurrency markets shows that there really is no knowing when the boom-and-bust cycles will stop.
However, Ethereum doesn’t just have a digital currency going for it. As mentioned before, its applications are much more far-reaching.
Ethereum May Surpass Bitcoin in 2021 Because It’s Faster
Ethereum is far faster than Bitcoin. It can release blocks 42 times faster than Bitcoin. In real terms that’s 14 seconds vs 10 minutes. As far as transaction speeds go, Ethereum is 8 times faster than Bitcoin.
Ethereum May Surpass Bitcoin in 2021 Because of Smart Contracts
Smart contracts are programs that can run on the Ethereum Blockchain. They’re functions that ensure that a contract is automatically executed when certain requirements are fulfilled. That way, contracts can be made more binding than they currently are. Breaking them will instantly result in consequences, without the need for enforcement by external authorities in most cases.
Ethereum May Surpass Bitcoin in 2021 Because It Acts Like a Real Currency
Ether, the currency that the Ethereum Blockchain can transfer, doesn’t have a specific cap like Bitcoin. It releases new currency every single year (though the year issue has a cap). Hence, it acts more like a real currency than Bitcoin.
This is also why Bitcoin has such a high market value in comparison to Ethereum. As mentioned before, however, the market value doesn’t tell the whole story. Ethereum has a much greater chance of retaining its value because of its behavior as a real currency.
Ethereum May Surpass Bitcoin in 2021 Because of DApps
DApps or dApps (Decentralized Applications) are applications built on the decentralized blockchain. Ethereum can, just like smart contracts, host such applications. DApps can have front-end code and UIs which are written in any programming language. The front end can also be hosted on decentralized storage.
- DApps are more advantageous over normal applications because they are:
- Independent: No one entity or one group can control them
- Deterministic: They don’t need the same environment to perform their functions
- Turing Complete: DApps can perform any action given the right resources
- Isolated: They can be executed in a virtual environment, or an Ethereum Virtual Machine. Hence, if smart contracts have bugs, they won’t hamper the normal function of the network.
Ethereum May Surpass Bitcoin in 2021 Because It’s Going Green
The environmental impact of Bitcoin and other cryptocurrencies is well known by now. Mining these currencies required to power that rivaled the consumption of small countries. Due to that criticism, even advocates like Elon Musk have expressed doubts about Bitcoin.
However, Ethereum has risked everything by committing to going green. In 2022, Ethereum will launch an update called “The Merge”. This is intended to cut the network’s energy consumption almost completely. With that, Ethereum is positioned to become the number one big green choice for consumers. It will not only become an ethical choice, but also a very economical choice due to its intrinsic value.
Ethereum May Surpass Bitcoin in 2021 Because of the World Computer
Even when Ethereum was in its infancy, its advocates called it a potential “World Computer”. Since it’s decentralized and spread across thousands of nodes around the world, it could essentially be a new internet.
However, the scale at which the internet runs today is next to impossible to duplicate. Hence, the application of such a feat is increasingly difficult. With all the big tech players playing at that level today, Ethereum had a snowball’s chance. However, that was until the big update.
In December of 2020, Ethereum 2.0 was launched. It aims to fix certain issues which prevented the Blockchain from scaling out before. With subsequent updates, there is a chance that Ethereum can actually become a “World Computer”. This could mean competition for established giants like Google and Facebook as a global network.
All these reasons make a clear case why Ethereum may surpass Bitcoin in 2021.
Cryptocurrencies are Experiencing a Boom
It’s been a volatile year for cryptocurrencies as a whole. Bitcoin shot up to $60,000 a coin at the beginning of 2021 and then crashed to near $32,000. Currently, it’s experiencing a new boom and currently sits at approximately $63,000.
Similar booms and busts have been enjoyed as of late by Dogecoin and by Ripple. The uncertainty and volatility of cryptocurrencies are what simultaneously attract and repel investors. Currently, no real value can be placed on any cryptocurrency since the regulations, applications, and sentiment regarding them keep changing.
Ethereum has been live nearly as long as Bitcoin and has proved itself to be much more stable. Its intrinsic value and potential are why it may surpass Bitcoin in 2021.