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‘Deflationary’ Eth2 could flip Bitcoin: Messari analyst

‘Deflationary’ Eth2 could flip Bitcoin: Messari analyst

‘Deflationary’ Eth2 could flip Bitcoin: Messari analyst

Ryan Watkins, senior research analyst at cryptocurrency analysis firm Messari, suggested that Ethereum could overtake Bitcoin as the largest cryptocurrency once Eth2 and Proof-of-Stake are reviewed.

During a YouTube appearance at the FinTech Today Show on the 18th. In March, Watkins said that while he doesn’t know if Ethereum will replace Bitcoin, he thinks Ether could become the leading crypto asset in the future thanks to Eth2:

The selling point of bitcoin over Ethereum as a store of value is that monetary policy is very predictable and the bitcoin blockchain is very secure. I think with the move to Eth2 and proof of stake, […] Ethereum could potentially be safer than Bitcoin.

Watkins also pointed out the changes in Ethereum’s economics due to the transition to Eth2, and emphasized that Ethereum’s upcoming burn mechanism will cause Ethereum to collapse faster than the rate at which new shares are created.

Ethereum’s monetary policy will actually change in Eth2, so not only will it be less inflationary than Bitcoin, it will actually be deflationary. So there is less ether every year because it is burned.

He asked a question: If Ethereum is more secure and has a stronger monetary policy, what is the case for Bitcoin in this scenario?

Watkins also highlighted the huge and diverse economy built on Ethereum, suggesting that the network’s burgeoning decentralized application sector will eventually attract new users faster than bitcoin.

At some point, the Ethereum economy will begin to attract so much capital, both human and financial, that it will truly be a force in the global economy, he said. Ethereum’s GDP rivals that of many major countries.

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People can make a living in this economy, he said.

According to the Blockchain Center Overflow Index, which uses eight metrics to measure Ethereum’s strength relative to Bitcoin, Ethereum is now 65.6 percent as strong as Bitcoin, after reaching a record high of 72.3 percent in early February.

The index suggests that Ethereum has already surpassed Bitcoin in terms of number of nodes, number of transactions and total transaction value.

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