If there were only two cryptocurrencies you’ve heard of, it would be a safe bet to say one is Bitcoin (BTC) and the other, Ethereum (ETH). Currently, Bitcoin is the market cap king, but it seems like things might change sooner than expected. Experts believe that Ethereum can overtake Bitcoin market cap in the coming time; this hypothetical event is commonly referred to as the ‘flippening’.
Even though Bitcoin is the most popular cryptocurrency (at least at the time of writing this), there’s a big bunch of Ethereum enthusiasts that believe that might not be the case for too much longer — and there might just be enough reason for that.
Let’s explore the reasons why Ethereum has more than a real chance of overtaking Bitcoin as the most popular cryptocurrency.
Reasons Why Ethereum Can Overtake Bitcoin
There are two main reasons why Ethereum is potentially stronger than Bitcoin. Let’s have a look at them.
1. Ethereum will be more energy-efficient and faster after moving to a Proof-of-Stake model
Both Bitcoin and Ethereum use Proof-of-Work (PoW) systems to validate transactions where miners compete to solve complex puzzles. However, Ethereum will soon upgrade to a Proof-of-Stake system. Validators will need to put in a portion of their crypto holdings at stake to verify the transaction with PoS. Here, the more a miner stakes, the greater the reward is.
At a stage where most people are moving towards sustainable goals, Ethereum is expected to use 99.95% less energy once it is fully upgraded to PoS. This reduces the utilization of energy and results in processing transactions faster and using lesser resources. This is one of the foremost reasons why Ethereum can overtake Bitcoin.
2. Ethereum has multiple use cases beyond just payments
Bitcoin, for now, is mainly seen as a store of value and, in some cases, a mode of payment. On the other hand, Ethereum provides a wider use case — across various industries. Ethereum can host smart contracts allowing individuals to perform transactions without any intermediary. These smart contracts also open new opportunities in the most prominent areas, such as DeFi and NFTs. If you are interested in NFT gaming, check out our article on NFT gaming tokens you should invest in.
Even though Ethereum is not the only network that hosts smart contracts, it is best known for DeFi and NFTs. When these applications become mainstream, Ethereum could still be in demand as it does not only exist for making payments.
Also read: Top Cryptocurrencies to Invest in April 2022
Ethereum processing transactions faster than Bitcoin now can give Ethereum a real chance at overtaking the Bitcoin market cap. With Ethereum increasing its use cases by the day, it stands a real chance of being a much more valued token. Besides, a lot of stablecoins use the Ethereum blockchain as well.
We cannot say when, but there seems to be enough reason backing the flippening taking place in the foreseeable future.