As the concept of flippening gets talked about more daily, we ought to ask what the differences between Bitcoin and Ether mean for the development of crypto applications and blockchain? For as long as blockchain and crypto have existed, Bitcoin has been a leader, started conversations, and by any metric, a dominant force in the industry.
It is logical to conclude that bitcoin’s supremacy is assured with its market capitalization of over $1 trillion and major business transactions by household names like Tesla and crypto payments enabled by major payment processors as stated on Yuan Pay Group official website.
The Ethereum blockchain technology has rapidly increased its crypto valuation thanks to its applications created on blockchain technology. In hindsight, ether and Ethereum have been leading stories during the second period of 2020 and 2021, despite the price watching that captivates participants and analysts every day. In hindsight, Ethereum has had leading stories during the second half of 2020 moving into 2021, despite the price watch that captivates participants and analysts daily.
Despite the recent rise in the price of ether, many of the most popular blockchain applications have been produced, and operated on the Ethereum technology. Although BTC has consistently (and rightfully) dominated the crypto scene, there is evidence that ether and Ethereum are likely to be on top in the next stage of BTC technology applications and use cases.
It is looking increasingly likely that there will be competition – first in the financial markets – to decide what cryptocurrencies and protocols lead the sector. Let’s take a look at a few of the fundamental items the market will have to evaluate going forward.
Transaction vs Applications
The debate over the use of crypto for transactions or held as an investment has been particularly heated over the last couple of years. As of now, the US seems to have decided that all crypto will be treated as property for taxation. This has far reached implications.
Aside from the fact that most crypto-assets do not accurately reflect its functionality or use cases, especially stablecoins, which was developed as a transactional token, the tax report and potential implications will discourage crypto from being adopted as an exchange medium. So, for those who said that bitcoin will take over fiat currencies shortly, every crypto transaction could be subject to taxation.
Price and Diversification
Ethereum, however, has proven over and over that they are a strong board for new users, such as and non-fungible tokens and decentralized finance. As it seems like an almost daily occurrence, the array of crypto assets, cryptocurrencies, coins, and tokens continues to expand around the world.
Even though many of these new iterations lack attributes that make crypto so appealing to investors, the market is still expanding. In what way is this related to the relationship between ether and bitcoin?
As crypto-assets grow in number, the conversation around crypto goes beyond showing how many options for investments are available. To reiterate our main point, several applications run on ETH technology. In light of the variety of applications of blockchains and cryptos, it makes sense that capital will flow to the platform that supports the majority, if not all, of these new applications.
As for what the bull run for ether will mean for the future, there definitely will be discussions. While there are plenty of questions that drive the crypto conversation irrespective of the continuing price volatility in the crypto space, there are a few fundamentals that need addressing.
For now, we can’t predict what the prices will finally be for different cryptocurrencies, or how the new applications will develop, or which options will move to the forefront. Despite this, the breadth of innovation and creativity deserves recognition.