Messari’s Ryan Watkins says Ethereum (ETH), the second largest blockchain network by valuation, has the potential to replace Bitcoin (BTC).
The senior research analyst spoke of a catalyst rush that could lead to the so-called explosion event. First, Ethereum’s full protocol update will reveal a “burning mechanism” to switch from proof of work to proof of stake. This means that the network will destroy more ETH tokens than its algorithmically active supply, leading to a better shortage.
Second, Watkins stated that the upcoming Ethereum upgrade will make its network more secure than Bitcoin. As a result, it will take on the role of the most active blockchain in this space and attract new projects and users from the emerging decentralized finance and immutable token (NFT) industry. Bitcoin will lack these features when transitioning to an anti-inflation, anti-fiat store of value asset.
“If Ethereum is more secure and has a stronger monetary policy, then what is the bullish situation for Bitcoin in this scenario?” also used the expressions.