Bitcoin has peaked by gaining more than 1000% in value in the last 12 months, but there is one more coin that surpasses this rally of bitcoin, which is ethereum, the second most valuable cryptocurrency.
While Bitcoin was below the $ 10,000 level this time of last year and currently pushing the $ 60,000 band, ethereum, which was around $ 100 last year, increased by 1200%, reaching almost $ 2,000 per coin.
Despite Bitcoin’s recent success, some say that Central Banks Digital Currencies (CBDC) will act as a ‘kryptonite’ for bitcoin and other similar coins, and these coins will weaken, but He thinks that ethereum will always be one step ahead of these coins thanks to its applications and constant updates.
According to the Bank of America report, “although bitcoin is the most talked about cryptocurrency, ethereum is more flexible and has more features.
Bitcoin has become associated with risky assets, does not depend on inflation, and continues to be very volatile, so it seems impractical to use it as a savings investment or a method of payment. ” The author also adds: “Unless Bitcoin is up, there is no reason why investors should hold bitcoin.” The report also states that CBDCs can act as ‘kryptonites’ for cryptocurrencies, but the rise of currencies that use DeFi (decentralized finance) technologies, mostly built on the ethereum blockchain and planned to replace banks, is intriguing.
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The fact that the biggest DeFi projects are built on the ethereum blockchain has led many users to flock to ethereum and to increase ethereum prices over the past year.
According to research firm Messari’s Ryan Watkins in his assessment this week, “ethereum will eventually prevail over bitcoin, if not in price, it will be in network security.”
“Ethereum’s transition to 2.0 and the proof of stake algorithm shows that ethereum can become more secure than bitcoin.
“The replacement of Ethereum for money will be achieved not by accepting it as a currency by countries, but by actually creating its own economy.”