Bitcoin vs Ethereum : Ethereum croisera Bitcoin en 2021

2021 is a lucky year for ETHer (ETH), the second largest cryptocurrency by market cap, which has quadrupled in value over the past 12 months.

In the process, ETH outperformed Bitcoin (BTC) and achieved a larger cap ratio across all cryptocurrency markets. Although the entire crypto industry has seen relative growth over the years, the growth in ETH prices has been associated with a review of Ethereum's core infrastructure, establishing the final pillar. of the transition to proof of approval in 2022.

Part of the Ethereum Improvement Proposal (EIP) has always been a priority for the entire Ethereum community and has proven to be the key to "integration". PoS beacon chains are expected to arrive in 2022.

London Hard Fork is the most promising development and introduction of many new EIPs. EIP-1559 is controversial because the cost paid by miners and the cost paid by users are different, and the impact of the change can be big and sad for many companies.

The main objective of this EIP is to describe the damage in ETH which destroys part of the ETH used to pay the exchange rate. While some miners are not happy with the falling prices, the advantage of the London hard fork is the deflationary effect of the ETH damage mechanism. It is believed that the EIP and the deflation mechanism will increase the value of ETH in the months and years to come.

Shortly after the London renovation, Ethereum began renovating Altair later this year as the first beacon chain update since the December 2020 release. This will allow more teams to participate in the continuous improvement of the Ethereum ecosystem as a simulation of "The Merge".

Another driving force behind Ethereum's performance in 2021 is the rapid growth of the financial services industry (DeFi), which has attracted a lot of capital. The Ethereum blockchain operates some of the largest DeFi platforms that have a direct impact on the development of ETH value and blockchain functionality.

No pain, no increase

Ethereum's popularity as a blockchain platform is a direct result of the smart contracts that support the ecosystem. Smart contracts enable the design and implementation of multiple blockchain applications, allowing users to build tokens, applications, and platforms.

ETH is the lifeblood of the famous Ethereum ecosystem, but the operations and applications executed on the blockchain play a major role in creating value. As they say, effortlessly and without efficiency, this ecosystem favors the benefits of the blockchain system.

Ben Caselin, head of research and concept at the AAX cryptocurrency exchange, provides insight into the key factors that could support Ethereum's strength this year. Caselin first reported on a variety of applications that have helped ETH grow over the years. “We're talking stablecoins, DeFi, GameFi, NFT, Meme coins, digital contracts, central bank rulers, farm profits, liquid lakes, and the meta-universe.

“Ethereum has all the business and capital in these industries and a huge market. Ethereum's value is focused in a variety of ways depending on the operations it supports, and Bitcoin represents new economies. Global trade is there. Growing steadily since adoption, the two went together for some, but driven by differences in energy and circumstances. "

Mattias Nystrom, Community Manager of the second tier Ethereum paid platform Golem Network, shared his understanding with Cointelegraph. Nystrom added that the entire operation of the Ethereum network is the key to success this year. "Bitcoin is primarily designed for payments, and Ethereum's expertise is the backbone of the technology. As Web 3.0 started to become more important, this was also supported by people."

Quantum Economics founder and cryptocurrency analyst Mati Greenspan told Cointelegraph that Bitcoin and Ethereum have many different uses and ecosystems, making it difficult to compare performance. However, it is recognized that these latest results clearly show an increase over the past 12 months.

“Bitcoin and Ethereum are no different between the two assets, except that they are both digital currencies. They have different functions in their networks, and each has their own unique abilities. depression. "

EIP influent

As Cointelegraph reported in November, Ethereum is in the final stages of implementing a power-hungry Proof of Work (PoW) approval algorithm for the Ethereum 2.0 Proof of Concept Trust (PoS) chain.

The beacon chain was launched in December 2020 and has started to develop the PoS Eth2 chain, with over 8.6 million ETH in storage and less than 270,000 users online. Basically, these validators take over the work of current miners on Eth2, process purchases, and keep the blockchain running. To become a full host, users must commit to 32 ETH and be able to register for a small fee at the pool.

One of the most sought-after PIEs is due to take place in the middle of 2021. The EIP-1559 has generated a lot of controversy among many as it changes the cost model that miners earn and pay their miners.

One of the issues is the built-in ETH damage mechanism, part of which is used to hedge exchange rates. Miners are not happy with this because the cost is part of their incentive to manage the network.

The advantage of London hard fork is the deflationary effect expressed by the ETH damage mechanism. A percentage of ETH is destroyed in each exchange, and many ETHs are being phased out of the ecosystem, which is believed to reduce the supply and cost of ETH as a commodity.

Caselin believes that the implementation of the London reform played a role in attracting good investors, but also highlighted some of the main differences between Ethereum and Bitcoin.

Renovation London reaffirms that Ethereum's position is good, usable and continuously developed. This is attractive to both traders and gamers. Some of the directors there is no work that works and turns out to be in. the following. It provides real help. The Token Destruction Mechanism revolves around describing inflation and the logic behind Bitcoin. "

At the same time, Greenspan is the most targeted in its assessment. He said the average Ethereum user is now aware of the impact of the recent EIP, which is now part of the Ethereum blockchain and beacon integration. don't think it has a major impact on thinking. "

Nystrom believes that the technological advancement of the Ethereum ecosystem through the integration and multiple applications of blockchain has proven its viability, which has been achieved through the growing value of ETH throughout the year.

“The integration of ETH is different from BTC and we will see more updates in 2021. The crypto community clearly understands that Ethereum is a very valuable product that supports the whole ecosystem and has a lot of room to develop. projects at all levels. "

The market is still weak

December has been a difficult month for global trade, and many retailers have responded to recent changes to new plastics discovered by South African scientists. The vibration of the traditional market has also shifted to the cryptocurrency market.

As this speculation spread to the cryptocurrency market, a number of major cryptocurrencies such as BTC and ETH suffered, and inflation in the United States rose, causing bad news. Caselin gave a better view, highlighting the state of the vaccine market relative to major financial news and events and that it could be better for BTC than ETH over time.

"The market always changes with important market news and events, but long term changes are driven by principle ... We can't go into the bear market, but we have good reason to believe in growth. that we've seen. The year is just the beginning. Long-term holders always buy. "

Greenspan acknowledged that the current average jet lag in the cryptocurrency market is uncertain, saying events in the United States are a sign of the times and the cause of the short-term slowdown.

“The media made a lot of noise when the Fed filed, now earnings are up and investor voices have become quieter. Maybe by the end of the year we'll see how the processing is deep. It's not like that .. "