Will ETH overtake BTC? The time for the London hard fork is approaching

Ethereum deserves to be the "new darling" of institutions, once again recognized by Goldman Sachs, and believes that it may surpass Bitcoin in the future. Although cryptocurrencies do not require the approval of other individual institutions, being favored by influential investment institutions like Goldman Sachs can also attract the attention of other investment institutions and investors.

In its latest report to clients, Goldman Sachs commented on Ethereum: the blockchain with the highest "practical use potential" is Ethereum, indicating that its ETH may become the dominant digital value store. And predict that the total market value of Ethereum may exceed the total market value of Bitcoin in the next few years.

Goldman Sachs judged this based on the fact that Ethereum is the platform of the native digital currency and the most popular smart contract application development platform. Smart contracts include software that automates the execution of digital contracts, a technology that has fueled the proliferation of decentralized finance (DeFi) protocols and crypto-powered decentralized applications (DApps).

Goldman Sachs' argument is that Bitcoin's current high price and cohesion are mainly a first-mover advantage for Bitcoin, but it lacks some of Ethereum's use cases and transaction speeds lag. Due to its focus on hard money and network security, Bitcoin does not yet offer the same level of functionality as Ethereum. In fact, to put it bluntly, it means that the network and application of Bitcoin are not as good as Ethereum.

This can be verified from Celsius Network, the founder and CEO of Celsius Network, a cryptocurrency depository and lending company that manages $17 billion in digital assets, said on Monday that in terms of holdings by platform users, The value of Ethereum held has surpassed that of Bitcoin, and it is believed that Ethereum will surpass Bitcoin in market capitalization in 2022 or 2023.

Coincidentally, Michaël van de Poppe, a market analyst in Amsterdam, believes that the number of ETH/BTC will continue to increase, showing an upward trend, that is, the price gap between ETH and BTC will become smaller and smaller, especially after the London hard fork. There is a qualitative change. In addition, the biggest help brought by the London hard fork is that it can solve the problem of high gas and transaction fees in the blockchain. It also aims to make ETH a deflationary token by destroying the basic network fees.

From the perspective of application and analysis, the two directions give different views, but the direction is unified, that is, the gap between ETH and BTC will become smaller and smaller, and it will even surpass BTC.

For this statement, we partially agree, that is, we recognize the strong potential of ETH, but BTC will also show a simultaneous upward trend. It is good to say that the value of ETH will definitely rise with the application and functional progress of Ethereum, but this is also a positive stimulus for Bitcoin.

Bitcoin does have a first-mover advantage, but it is this advantage that makes it unique. Without other Bitcoins, there is no other currency. Bitcoin can not exist as any function, but as an investment asset, as an auspicious It is also reasonable that the property only has investment value. Whether it is ETH or other currencies, the functionality becomes stronger and the value becomes higher, but doesn’t it just verify the possibility of cryptocurrency from the side? At the same time, it is also improving the acceptance of Bitcoin in disguise.

Goldman Sachs and other analysts, including the market, believe that ETH will surpass BTC. It may mean that the proportion of ETH will gradually increase in the absence of new funds. It does not necessarily have a relationship with BTC, and we can look forward to the common growth of the two.

However, the recent rise of ETH is much stronger than that of Bitcoin. Bitcoin has been in a volatile trend for a long time, while ETH has risen from around $1,700 to around $2,400.

The market today can be said to be good. After confirming the market a few times in the morning, the market went straight up, but it did not pull much, but so far it has not reached 1,000 US dollars, and it is close to 35,000 US dollars.

The market is still under some pressure around 35,000 US dollars. The previous two times when it continued to attack in the range of 35,000-36,000 US dollars was not very good, and there was a feeling that it would accelerate its escape when it reached this position. It would collapse after a slight pull-up. Look at this time Can it be improved.

Risk warning: Investing in digital currency is a high-risk investment behavior. The content of this article is for reference only and does not constitute investment trading advice. Investors are requested to invest rationally: investment is risky, and caution is required when entering the market.

Risk warning: Investing in digital currency is a high-risk investment behavior. The content of this article is for reference only and does not constitute investment trading advice. Investors are requested to invest rationally: investment is risky, and caution is required when entering the market.