Can Ethereum Overtake Bitcoin

Will Ethereum surpass Bitcoin in market cap eventually? There are some people that think so, as you'll see in this video, and the names are very trustable ex-bank CEOs and so on.

Let's not also remember that a lot of NFTs (Non-Fungible Tokens) are built on Ethereum which will also drive the price higher.

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Cryptocurrencies are a $1.2 trillion market today, more than doubling from its $566 billion peak in 2017. Since the crypto boom, Bitcoin has dominated up to 90% of the market share. But nowadays it’s more like 63%. Oh, how the mighty have fallen. And maybe… just maybe, Bitcoin isn’t done shrinking in market domination just yet.

For years now, crypto enthusiasts have awaited The Flippening, which is the point at which another cryptocurrency overtakes Bitcoin in size and value.

In this video, we’re going to make a case for why Ethereum can surpass Bitcoin in 2021 and beyond.

Before we get into the Flippening, let’s quickly recap crypto’s bull run in 2020.

Just last year, cryptos were sitting on a $237 billion market cap. So what’s been driving up prices? There are multiple factors, really. But one of the primary ones is crypto’s burgeoning adoption by institutional investors. Public companies like Microstrategy, Square, and Tesla have converted a combined $2.6 billion of their balance sheets into Bitcoin.

Just the fact that Tesla put 8.3% of their cash into Bitcoin to ‘’MAXIMIZE returns on their cash.’’ is a huge deal.

Now you must be thinking, why would I invest in Ethereum if all these big institutions believe in Bitcoin? Well, there are 3 reasons for that, and we’ll get to that very soon, stay with me.

Since the pandemic shut down businesses worldwide, the Federal Reserve has printed trillions of dollars to keep the US economy afloat. This is when serious investors began adopting Bitcoin as a safe haven asset. And whenever Bitcoin rises, altcoins rise too.

Now, since it’s taking us a lot of time and effort to create these videos, all I ask for is one favor… Give this video a like. It costs you nothing and it helps us spread the word about the amazing technologies and companies we talk about on this channel. So go ahead, I’ll just wait a sec.

Let’s continue! Here’s the first reason why Ethereum could overtake Bitcoin.

Market Cap
The most famous altcoin, second in value only to Bitcoin, is Ethereum. Ethereum currently controls 24% of the crypto market. Compared to Bitcoins 63%, it has some work to do and every other altcoin has less than a 3% market share.

Just as a reminder, sometime during 2017, Ethereum was worth 82% of Bitcoin’s market cap, with only $7 million left to soar past Bitcoin. Who’s to say that won’t happen again? The more expensive Bitcoin becomes, the more investors begin to pour money into less expensive but equally or more promising altcoins.

That’s one potential driver behind Ethereum’s speculative increase in market cap. Let’s explore another one.

Scalability
Bitcoin has a scaling issue. Every Bitcoin transaction is recorded on the Blockchain. But each transaction, or block, is limited in size to 1MB. Not to mention, it takes 10 minutes to create one block. So even though Bitcoin is bigger than ever, it’s limited in how many transactions it can perform per unit of time. The more people transact with Bitcoin, the slower it becomes.

Now there’s some logic behind this. The delay is there to give miners enough time to solve computational puzzles that verify the transactions. This is called Proof of Work, which maintains the reliability and accuracy of the Blockchain.

There have been proposals to increase the speed of Bitcoin transactions. The most famous one is called the Lightning Network. In short, it’s a way for people to send Bitcoin to each other without having to rely entirely on the blockchain.

This is how you’d use the Lightning Network:
You open a payment channel.
You pay a small fee on the blockchain.
Then you send the rest of the Bitcoin to your peer, without having to verify it on the Blockchain first.

As long as you keep this channel open, you don’t have to go through the Blockchain to transfer Bitcoin. Sounds like a better user experience, right?

But since Bitcoin is an open-source project, a majority of its contributors have to agree on any proposed changes. And so far, the Lightning Network has not been widely adopted. Not just mention that miners are not incentivized to adopt the Lightning Network. Don’t forget that miners make their money verifying Blockchain transactions, which the Lightning Network would reduce.

Ethereum, on the other hand, doesn’t have a maximum block size. And instead of having miners solve computational problems to verify transactions, Ethereum simply charges a fee, also called Gas.

[deconnected]

Great content 👍 big thumbs up and very informative thanks for that

[williamwesterlund]

It'll be interesting to see how NFTs will affect the price of ETH

[Pravin_CoHeir]

ETH is better or at least equal to BTC. Load up now before the masses realize 🚀🚀🚀🚀

[elbozo]

back up your claims dude, dont just explain what each is and blindly say itll pass bitcoin. you didnt even mention NFTs role in ethereum, or the issue of ethereum's unlimited supply

[ElixirEcho]

I don't know. I mean Cardano is better then Ethereum soo...

[thepleasureroom]

cathy gladden cook with the crypto spam lol