With the decline in Bitcoin (BTC) price, allegations have been made that it will lose the steering wheel to Ether (ETH). Mainstream media suggest that feelings of “fear, uncertainty and doubt”, defined as FUD, dominate the market.
While the BTC/USD pair remains below $40,000, only major investors continue to resist the bearish process.
Bloomberg: ETH “likely to overtake Bitcoin”
In a May 31 report, Bloomberg cited multiple sources claiming that in the future, Ether will become the most preferred cryptocurrency and overtake Bitcoin.
Tegan Kline, co-founder of blockchain firm Edge & Node, said in the post that “the largest altcoin will likely surpass Bitcoin at some point in the future because the Ethereum network is superior in innovation and developer support.”
Another executive added that Ethereum has a “stronger growth story”.
In fact, this view has been echoing in the ecosystem for a long time. Since the development of Ethereum, this issue has been coming up at regular intervals. The last major update of the Ethereum network has resurfaced this view, and ETH has outperformed Bitcoin last year. Especially the development of the decentralized finance (DeFi) ecosystem has a big share in this.
With all these developments, the long-lost ETH/BTC pair hit a three-year high earlier this month.
ETH has also managed to gain more value than Bitcoin in recent days. As Cointelegraph reported, ETH/USD has managed to stay strong, while BTC/USD is struggling to maintain critical support levels.
Druckenmiller likens Ethereum to MySpace
However, there are those who believe that it is absurd to claim that Ethereum will replace Bitcoin, despite its impressive performance.
The only flippening happening this year pic.twitter.com/cY0necJ3GM
— William Clemente III (@WClementeIII) May 29, 2021
In an interview with The Hustle last week, billionaire investor Stanley Druckenmiller shared his ideas that will dispel doubts about Bitcoin’s power.
“I think BTC has proven its power as a store of value because it’s branded. It’s been around for 13-14 years and its supply is limited,” he said.
“Will it be the new gold? I don’t know. It sure has been a good imitation of it for the last one or two years.”
Druckenmiller likened Ethereum to MySpace and compared Bitcoin to Google.
On Ethereum, he continued, “I’m more skeptical that it can hold its position. It reminds me a bit of MySpace before Facebook.”
“To make a better analogy, it might be Yahoo before Google came along. Google wasn’t much faster than Yahoo, but it didn’t have to be. All it needed to be was a little bit faster, and the rest is history.”
Many experts think that technically, Bitcoin and Ethereum have little in common. Bitcoin’s limited supply and longstanding resilience to attacks put it on a different level than any other cryptocurrency. Comparing another virtual entity with it is like comparing “apples to pears”.
Saifedean Ammous, author of the book “The Bitcoin Standard,” said on the Unchained Podcast in August 2017, “I generally think that other digital currencies cannot truly compete with Bitcoin and are in no way similar to Bitcoin.”
“If I’m optimistic, I think their real competitors are Amazon Web Services and such platforms.”