Why Ethereum Isn’t Bitcoin and Nothing Beats Ethereum
Ethereum is one step closer to being digital gold
Ether has every chance of reaching the title of digital gold with proper development.
The ecosystem capitalization has already grown to almost $ 22 billion.
Ethereum is now the only project that is being used as intended..
The Ethereum blockchain has already surpassed the Bitcoin network several times in terms of purposefulness of use and the number of deployed solutions.
Discussions about the potential of a cryptocurrency asset are often limited to Bitcoin only.
This is unsurprising as Bitcoin is the oldest cryptocurrency on the market and most clearly targets the non-sovereign value accumulation use case..
The title “digital gold” is increasingly attributed to bitcoin and plays an important part in the development of a marketing campaign. So far, no other cryptocurrency has an equally clear and convincing usage model..
However, Bitcoin is far from the only cryptocurrency that can compete for the title of digital gold..
Of all the cryptocurrencies aimed at the non-sovereign use case of value accumulation, ether (ETH) is an unconditional analogue of bitcoin, at least in terms of its intended use..
The blockchain of the Ethereum ecosystem is known even outside the market and is the only public blockchain network that is actually used for its intended purpose..
As proof, it is enough to recall that now almost half of the total cost of the Ethereum blockchain falls not on ETH itself, but on other ERC-20 tokens..
At the same time, Ether is the second largest cryptocurrency by market capitalization. At the time of this writing, the capitalization of ETH is $ 26.1 billion, and the price of ETH has reached $ 234.
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Cryptocurrency is used not only to support smart contracts or investments, but also as a trading asset. BeInCrypto’s editors have already written how to increase trading profits in 2020 without significant risks.
It’s no surprise that many are wondering what will happen to an asset if the price rises to such a level that ETH could be called digital gold.?
Analyst agency Messari believes that at the current ETH rate, the potential ROI would be more than 490 times higher if ether hit the gold level.
Messari analysts believe that the asset will have an explosive payback once it approaches the scale of gold.
“It sounds like a crazy proposal for an asset, which capitalization is now $ 22 billion, but this does not exclude the possibility, if we remember that ETH is not a startup, but a nascent monetary asset” – noted in Messari.
Analysts at Blockfyre share a similar opinion..
Previously, they conducted a study of the development of the Ethereum ecosystem and came to the conclusion that the asset is trading several times lower than it should be.
The key factor for the growth potential is considered to be the fact that since 2014 the ecosystem has significantly increased its market position with the help of new developments, regardless of the price behavior in the market..
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