Ether has more potential than Bitcoin as a newer cryptocurrency, and the
latest EIP 1559 will help the token trade more like a fixed asset,
Pantera Capital CEO said.
Amid the looming Ethereum London hard fork, Pantera Capital CEO Dan Morehead predicted that the upcoming upgrade would likely help Ether (ETH) outpace Bitcoin (BTC) as the largest cryptocurrency.
As a newer cryptocurrency, Ether has more potential than Bitcoin, Morehead said
at the Reuters Global Markets Forum on Monday, noting that the latest
Ethereum Improvement Proposal (EIP) 1559 upgrade will help the digital
token to trade more like a fixed asset.
One of five EIPs in ETH London upgrade, EIP 1559 is an anticipated update to Ethereum’s existing fee structure, introducing a minimum payment
for sending Ethereum transactions and move away from a bidding system
that allows miners to prioritize the highest bids. Designed to
programmatically adjust fees for users to pay the lowest bid for each
block, EIP 1559 upgrade would potentially make Ether a deflationary
asset.
“You’ll see a transition of people who want to store
wealth, doing it in Ether rather than just Bitcoin,” Morehead predicted,
adding that the cryptocurrency’s shift to Ethereum 2.0 will
significantly reduce Ether’s mining energy consumption levels compared with the one of Bitcoin. Ethereum’s wide implementation in decentralized finance applications would also help Ether grow bigger than Bitcoin, he said.
Despite
predicting a brighter future for Ether, Morehead is still optimistic
about Bitcoin’s growth in the future. The CEO reportedly predicted that
Bitcoin would trade between $80,000 and $90,000 by the end of 2021,
rising above $120,000 within a year. Surging mainstream adoption could
further drive Bitcoin price to as high as $700,000 in the next decade,
Morehead noted.
Related: Ether price hits 2-week high as London hard fork momentum builds
Launched in 2015, Ether is the second most valued cryptocurrency, with a market capitalization amounting
to $290 billion at the time of writing. Scheduled to take place on
Wednesday, the Ethereum London is one of the biggest Ethereum upgrades
designed to move its blockchain from proof-of-work to proof-of-stake,
meaning that the network would mostly rely on staking instead of mining.
Launched in 2009, Bitcoin relies on the PoW consensus algorithm.
Morehead
is not alone in thinking that Ethereum could outperform Bitcoin in the
future. Mike Novogratz, founder and CEO of crypto investment firm Galaxy
Digital, predicted in late June that Ether could become the “biggest cryptocurrency one day.”
source link : https://cointelegraph.com/news/eth-2-0-will-help-ether-outpace-bitcoin-pantera-capital-ceo-predicts
