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Bitcoin vs. Ethereum – Are We Going to See Ethereum’s Victory over Bitcoin?

The moment when Ethereum will overcome Bitcoin appears closer and closer. However, it doesn’t seem easy to forecast the precise moment when ETH’s historical victory over BTC will occur.

While we observe the market’s movements, there are several arguments made by experts to sustain ETH’s rise.

A Quick Introduction to BTC and ETH

First, it is essential to know the different stories that brought us BTC and ETH.

Someone using the pseudonym Satoshi Nakamoto created Bitcoin (BTC) in 2008. BTC has held on to the title of the world’s most traded and owned cryptocurrency ever since. To date, Bitcoin has been the benchmark asset or every other token on the market.

Bitcoin facilitates worldwide peer-to-peer transactions without the need for a central bank. Bitcoin is decentralized, meaning that anybody may participate in its functioning without a central authority. 

In 2015, a group of computer programmers led by Vitalik Buterin established the cryptocurrency Ethereum. Because of its smart contract capabilities and decentralized nature, developers frequently think of Ethereum to build their crypto projects. 

There’s little doubt that Ethereum is a peer-to-peer payment system like Bitcoin, thanks to the Ether (ETH) token. However, it would not be fair to see Ethereum as a mere payment system.

Ethereum is a platform supporting decentralized apps (or Dapps). We often see its application in the decentralized finance (DeFi) world. NFT minting and gaming development are two other operations we generally associate with Ethereum.

There are many ways BTC and ETH differ, from token prices to gas fees. More importantly, these projects represent two different ways of seeing the future of the blockchain industry.

The Ethereum’s Developer Ecosystem

Interest from developers is a leading sign of the direction in which technology is going. Developers are attracted to platforms with much active development in their pipeline. This process is a closed-loop in which developers attract more colleagues. 

As data shows, Ethereum is the blockchain system that can boast the highest number of developers globally. This figure showed remarkable growth over time, proving the statement above.

Ethereum will be better equipped to adapt to new challenges than Bitcoin because of its large developer base. Ethereum’s engineers are working on the ETH 2.0 upgrade to accommodate hundreds of transactions per second.

In comparison to the Lightning Network, included in the Bitcoin ecosystem, Ethereum has a larger pool of developers. This advantage makes it more likely to succeed in modernizing and improving its design. 

A Matter of Token Utility

More than 15,000 companies across the world already accept Bitcoin. There are hundreds of millions of businesses around the globe. While it may seem like an enormous number, it is just 1 in 10,000. 

While Bitcoin is generally famous in the real world, Ethereum leads the charge in the metaverse with NFTs. 

Indeed, Ethereum is the preferred platform for trading NFTs: its blockchain supports smart contracts, while Bitcoin does not. A smart contract executing a transaction on Ethereum does not involve any intermediaries.

The target is not replacing the dollar, as Ethereum has demonstrated. The real purpose is to fill the void of a fiat currency.

A Look at the World Surrounding ETH

NFTs, DeFi, DAOs, and the metaverse have been gaining pace throughout 2021. In 2022, Ethereum-based cryptocurrencies will probably outpace Bitcoin in popularity. Decentraland, a popular virtual world project, has recently witnessed a ten-fold increase in its user population.  

Many of the cryptocurrencies available in the Sandbox and Decentraland worlds are Ethereum-based tokens. Ethereum has definitively developed into a primary platform in the virtual world. 

In contrast, Bitcoin appears to have less room for development and uses. It has undoubtedly profited dramatically from its first advantage mover’s brand recognition. According to Bitcoin bulls, the biggest reason for its worth seems to be its “digital gold” association.  

While it still appears complex to fight world inflation with cryptocurrencies, only time will tell us who is right. In any case, Ethereum is considerably more malleable and can move in any direction the blockchain industry will follow.

Bitcoin vs. Ethereum – What Shall We Expect from the Future?

Bitcoin and Ethereum have a few crucial distinctions. Some countries throughout the world accept Bitcoin as a form of payment. 

For example, El Salvador started legally accepting BTC last year. Many people are questioning this decision because of the volatility of Bitcoin.

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We need to understand that Bitcoin and Ethereum are trying to win two different battles. The BTC community hopes to see their favorite coins become a legal form of payment worldwide. Instead, the ETH enthusiasts hope that Ethereum will become the engine that will shape the future Web 3.0 world.

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