Amid the looming Ethereum London hard fork, Pantera Capital CEO Dan Morehead predicted that the upcoming improve would seemingly assist Ether (ETH) outpace Bitcoin (BTC) as the biggest cryptocurrency.
As a more recent cryptocurrency, Ether has extra potential than Bitcoin, Morehead said on the Reuters International Markets Discussion board on Monday, noting that the newest Ethereum Enchancment Proposal (EIP) 1559 improve will assist the digital token to commerce extra like a hard and fast asset.
Considered one of 5 EIPs within the Ethereum London improve, EIP-1559 is an anticipated replace to Ethereum’s current payment construction, introducing a minimum payment for sending Ethereum transactions and transfer away from a bidding system that enables miners to prioritize the best bids. Designed to programmatically modify charges for customers to pay the bottom bid for every block, the EIP-1559 improve might probably make Ether a deflationary asset.
“You’ll see a transition of people that need to retailer wealth, doing it in Ether somewhat than simply Bitcoin,” Morehead predicted, including that the cryptocurrency’s shift to Ethereum 2.0 will considerably cut back Ether’s mining energy consumption levels in contrast with the one among Bitcoin. Ethereum’s wide implementation in decentralized finance purposes would additionally assist Ether develop greater than Bitcoin, he stated.
Regardless of predicting a brighter future for Ether, Morehead continues to be optimistic about Bitcoin’s progress sooner or later. The CEO reportedly predicted that Bitcoin would commerce between $80,000 and $90,000 by the tip of 2021, rising above $120,000 inside a yr. Surging mainstream adoption might additional drive Bitcoin’s value to as excessive as $700,000 within the subsequent decade, Morehead famous.
Launched in 2015, Ether is the second most valued cryptocurrency, with a market capitalization amounting to $290 billion on the time of writing. Scheduled to happen on Wednesday, the Ethereum London is likely one of the greatest Ethereum upgrades designed to maneuver its blockchain from proof-of-work (PoW) to proof-of-stake, which means that the community would largely depend on staking as an alternative of mining. Launched in 2009, Bitcoin depends on the PoW consensus algorithm.
Morehead just isn’t alone in considering that Ether might outperform Bitcoin sooner or later. Mike Novogratz, founder and CEO of crypto funding agency Galaxy Digital, predicted in late June that Ether could become the “greatest cryptocurrency sooner or later.”