Four improvements will be implemented in the Ethereum blockchain, and the update aims to eventually make the network cheaper and faster by restructuring transaction fees.
Some say this will cause Bitcoin to “eat the dust,” but is that true?
Bitcoin has a different offering than Ethereum and they are both growing for different reasons.
Bitcoin is supposed to be a Decentralized currency, Ethereum was created to be a A decentralized operating system.
Although Ethereum is faster than Bitcoin in terms of transactions per second, Bitcoin remains digital gold, while Ethereum is seen as silver.
The update is scheduled to take place in Block 12244000, which will be mined sometime on April 14th, and it will be possible to monitor the exact time via the website. ethernodes.org.
Will Bitcoin eat the dust?
Looking at investors, it is safe to say that one group is betting on Bitcoin as a store of value, while others are betting on Ethereum to consider the platform for the future of technology.
It’s as if a group is investing in “New Precious Metals From Nerds” And the other that you invest in “Google the future.”
In 2021 a Bitcoin is good for value, Leaving $ 29 Million US Dollars At the beginning of the year to $ 60 Million US Dollars right Now.
Meanwhile, I evaluated Ethereum 189%, Leaving a little more than 650 dollars With the purpose 2200 dollars This Sunday.
When comparing Bitcoin and Ethereum’s performance on a file A one-year break You can see that Ethereum performed better, Since the last 365 days, the value of the cryptocurrency has been roughly estimated 1200%, While Bitcoin is valued 732%.
This is Bitcoin performed 468% less than Ethereum.
From here we can already say that Bitcoin has “eaten the dust”, right?
Look at the same period again, but instead of focusing on The percentage of winningsFocus on price.
A year ago Bitcoin was traded by US Dollars $ 7.438; Dump from 732% Take the digital currency above $ 59 Million US Dollars.
Exactly on the same date, Ethereum was in circulation $ 170; With a height 1200% In this period, the digital asset reached the historical mark of $ 2,100 US Dollars.
See the chart below:
The chart above shows that Bitcoin practically acquired a space rocket and started heading toward the moon, while Ethereum, although appreciated, became more shy.
From this point of view, would it be better to invest in Bitcoin or Ethereum?
This depends on the amount invested.
If you bought 1 Ethereum a year ago for $ 170, today you will get 1 Ethereum worth $ 2,100.
Likewise, if you bought 1 Bitcoin a year ago for $ 7,438. Today you can sell the same Bitcoin for $ 60K.
But if the investment is worth less, the results change.
For example, if you bought 1,000 dollars in Bitcoin and Ethereum a year ago, you’d get exactly today 0.14 Bitcoin e 5,88 ether.
This translates to $ 8,350 for Bitcoin e Ethereum $ 12,506.
Each currency has been valued for different reasons. While Ethereum has risen through developer adoption, so does the growth in the decentralized financial system (DeFi(And holdings in the form of non-exchangeable tokens)NFT), Bitcoin has been appreciated due to the increased institutional adoption, which has invested in the currency as a store of value.
Assuming that Bitcoin will cease to be adopted and that Ethereum will replace it is illogical, as it is like saying that you will no longer have gold for a computer.
You can also have both.
Berlin, London and Ethereum 2.0
Notably, the Berlin Update is part of a wider development of Ethereum, which will be upgraded to version 2.0 by the end of 2022.
In Wednesday Update (14), four EIP improvements will be implemented:
- EIP-2929 Increase Some gas costs
- EIP-2565 reduces the cost of pre-compiling ModExp;
- EIP-2930 contains transaction type with optional access lists;
- EIP-2718 introduces new type of transaction.
Ethereum holders, brokers and wallets do not need to do anything, updates are turning more towards developers.
So it is not reasonable to expect that this particular update will make Ethereum significantly outperform Bitcoin, even though the coin has the potential to rally, of course.
On the other hand, the update scheduled for July may increase the asset’s value.
Named B. London, Update Will be implemented New toll market protocol that standardizes costs for the entire network. Thus, it will avoid situations such as unbridled increase in the average transaction fee.
In addition, the update will implement a burning mechanism that should change the Ethereum monetary system to a deflationary one.
Vitalik Buterin, to co-finance Ethereum, prediction Network is 100x faster before upgrading to 2.0.
Therefore, Ethereum will have important updates over the course of 2021 and 2022 that will boost assets to values never seen before.
Some analysts believe that the digital currency will reach the level of $ 10,000 per unit when everything is implemented, that is, by 2022.
Berlin modernization is only the first step.
Despite the optimism with the network, it cannot be said with certainty that the coin will appreciate much. Ethereum has many competitors and the winds may change.