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Will Ethereum beat Bitcoin’s price?

The extreme pace of technological development brings changes to every sphere of human life. Indeed, the financial field experienced the transformations as well. As a result, the beginning of the 21^st century made cashless payments possible, which instantly boosted the global economy.

In the light of the interweaving of finances and high technologies, such a notion as a cryptocurrency emerged. What does this term mean? A short explanation is that it is a kind of secured digital currency. While countries issue regular papers and coins, this type of money is independent of any government. On the contrary, any person could mine a cryptocurrency with the necessary knowledge and equipment.

In 2021, the cryptocurrency scope of use is infinite. Generally, this form of payment is convenient for Internet purchases, both in online and real stores. Also, multiple countries accept crypto money in many situations. Whole chains of restaurants and car dealers accept digital currency from their clients. Markedly, even some universities allow their students to pay tuition fees with tokens.

How many digital currencies are out there?

Shockingly, at the beginning of 2021, there were more than 4500 types of crypto coins! Even though this volume already seems enormous, new cryptocurrencies still appear all the time. All of them differ in price, market share, market capitalization, and features, so purchasers have a broad choice. The representatives of the strongest players in this field are:

In fact, when an average individual thinks of cryptocurrency, the first thing that comes to their mind is Bitcoin. Yes, its creators were the pioneers in the market, but is this success permanent? Undoubtedly, the next ones on the list could attempt to outrun the current winner and establish themselves as the new leaders. One of Bitcoin’s most dangerous competitors is Ethereum.

What is Ethereum?

The Ethereum cryptocurrency is the second after Bitcoin in the market capitalization list. Namely, the value of the leader is $853,250,934,981. This number is twice as much as the market cap of Ethereum, which equals $408,914,100,768. These two competitors differ in price as well. According to the BTC to USD calculator, one Bitcoin is much more expensive than one Ethereum coin.

The idea of Ethereum appeared back in 2013, and the author was Vitalik Buterin. For the first time, the tokens entered the market two years later, in 2015. What is interesting, this particular cryptocurrency serves multiple purposes.

First of all, just like any other type of digital money, Ethereum allows users to perform online monetary exchanges.

Moreover, the creators aimed to make it possible to manage applications on the Ethereum platform. As an illustration, the developers have an opportunity to create independent financial projects that relate to various themes, such as real estate or gaming.

Therefore, Ethereum offers two kinds of accounts, that are user accounts for transactions and contracts. The second type is able to provide passive functions, such as storage of value. Yet, with this account performing financial operations is impossible.

Which factors could help Ethereum outrun Bitcoin’s price?

The cryptocurrency market usually follows BTC as the most popular crypto. However, in recent sessions, Ethereum has taken a significant advantage in terms of rates of return over Bitcoin.

Usually, any company constantly fights for the leading position on the corresponding market. Every decision of the top management influences the current situation and the position of a product or a service. The same goes for the crypto market. The leading players have an urge to keep their ranks, while others attempt to take their place.

From the very beginning, the owners of Ethereum could hardly imagine that their platform would compete with Bitcoin. Yet, it shares a high percentage of market share now. Who knows, maybe there is a chance of Ethereum becoming a new leader? Here are some advantages that could speed this process up.

The convenience of Ethereum

What is the core difference between Bitcoin and Ethereum? The first thing to remember is that Bitcoin is solely a cryptocurrency, and Ethereum is a platform. This factor could be a significant competitive advantage of the latter. To put it differently, Ethereum creates a system that consists of multiple interconnected elements. Some of them include stock exchanges, virtual wallets, and decentralized applications.

For users, such an infrastructure is rather attractive as it allows them to perform multiple actions within the same platform. Hence, they prefer it over the substitute systems.

The speed of transactions

Additionally, velocity is another factor in which Bitcoin loses the competition with Ethereum. The current leader performs only from three to five operations per second, while its rival increases the frequency to fifteen per second. Furthermore, Ethereum is more efficient since it packs more transactions into one block. Indeed, speed is one of the main factors that determine the choice of a user. Time is money, so everyone prefers something fast and efficient. Mainly, this rule works in the digital world, where significant shifts happen in fractions of a second.

Secured anonymity for users

Another critical point is that Ethereum constantly works on the security of its users. This platform employs the newest technologies, like the one called “zero-knowledge”, to provide complete anonymity. Due to the modern protocols, Ethereum hides the addresses of senders and receivers. The whole process requires additional steps with mathematical functions to ensure that the transaction remains in secret.

The importance of such measures is hard to overestimate. Consequently, it affects the image of a platform and the number of potential clients.

Conclusion

In the long run, the changes in the crypto market are often unexpected. Indeed, even the slightest shifts in the moods of influential investors provoke alterations in the hierarchy of the leaders. The attitude of buyers depends on various factors, from the words of a significant individual to the volatility in neighboring markets.

Hence, there is a chance that the efforts of its creators could result in the decreasing price of Bitcoin. In either case, time will show.