Messari analyst Ryan Watkins has suggested that ETH could overtake BTC and become the largest cryptoasset after the rollout of Ethereum 2.0 and the move to Proof of Stake (PoS) consensus.
During a speech on the YouTube show FinTech Today, Messari analyst Ryan Watkins stated that he did not know if ETH could overtake BTC. However, he is confident that ETH could become a leading crypto asset after the deployment of Ethereum 2.0. He said:
“The advantage of Bitcoin over Ethereum as a store of value is that its currency policy is very predictable and the Bitcoin blockchain is very secure. I think with the move to Eth2 and proof of stake […] Ethereum has the potential to become more secure than Bitcoin. ”
Watkins also highlighted the change in the underlying economy of ETH during the transition to Eth2. He mentioned the introduction of a “commission burning” mechanism planned for July, the launch of which will lead to the burning of ether at a rate exceeding the emission of new coins. This will make Ether even more deflationary than Bitcoin.
“Ethereum’s monetary policy will actually change at Eth2, so in reality it will not only be less inflationary than Bitcoin, it will actually be deflationary. Every year there will be less and less ether, because it is burned. ”
He asked the question: “If Ethereum [гипотетически] is safer and has a stronger monetary policy, then what are the arguments for Bitcoin in this scenario? ” Watkins also noted the “massive and diverse” economy built on Ethereum. He hypothesized that the booming decentralized app sector will, over time, attract new users at a faster rate than bitcoin as a store of value.
“At some point, the Ethereum economy will start attracting so much of both human and financial capital that it will become a real force in the global economy,” he said. “In terms of GDP, Ethereum actually competes with many large countries. People can make a living in this economy. ”
The Blockchain Center portal has a special indicator Flippening Index, which is based on 8 key characteristics of the Ethereum and Bitcoin blockchains and shows how much activity on the Ethereum network exceeds that of the first cryptocurrency network. At the moment, the index is equal to 65.6%, having fallen from an all-time high of 72.3% at the beginning of February.
Recall that recently Ethereum developer Mikhail Kalinin published a document proposing a faster merger of the ETH1 and ETH2 blockchains and, accordingly, a faster transition to PoS.
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