Expert: Ethereum is a better store of value than Bitcoin
Abstract: Researchers from Australian University questioned Bitcoin as the best value storage network among cryptocurrencies, and believed that Ethereum is expected to “be the world’s first deflationary currency” and may be a better value storage tool than Bitcoin.
Australian University researchers questioned Bitcoin as the best value storage network among cryptocurrencies, and believed that Ethereum is expected to “be the world’s first deflationary currency” and may be a better tool for value storage than Bitcoin.
A recent paper published by four Australian researchers discusses how the EIP-1559 upgrade can make Ethereum a better store of value. The research was co-authored by Ester Félez-Viñas of the University of Technology Sydney, Sean Foley of Macquarie University, Jonathan Karlsen of the University of Western Australia, and Jiri Svec of the University of Sydney.
The EIP-1559 upgrade of Ethereum in August of this year saw that the network burned some transaction fees and burned more than 1 million ETH from 118,583,580 circulating supplies.
reports that sometimes more than 50% of the transaction fees of the 12,000 newly minted ETH per day by EIP-1559 are destroyed. For more blockchain news, please pay attention to download the WikiBit APP, the global blockchain supervision query APP. They believe that due to its strong decentralized financial dApp ecosystem leading to increased demand for Ethereum, more Ethereum will be burned.
Researchers believe that the inflation rate of Ethereum is already lower than that of Bitcoin. “Calculated year by year at the speed of Ethereum’s creation since EIP-1559, the expected growth of the total supply of Ethereum is only 0.98%, which is less than half of the almost certain Bitcoin supply growth of 1.99% over the same period.” The researchers concluded. , Ethereum provides “better inflation hedging features than Bitcoin, so Ethereum may provide a better long-term store of value than Bitcoin.”
Due to the massive printing of money during the epidemic and the inflation rate of 6.2% in the United States in October, people are becoming more and more interested in Bitcoin’s hard cap of 21 million coins and its applicability as an inflation hedge. However, research suggests that investors may also want to consider Ethereum for this purpose. Supporters of Ethereum have begun to call Ethereum a “super-sound currency” in response to Bitcoiners’ touting Bitcoin as a “hard currency” or “sound currency.”
However, Bitcoin supporters like MicroStrategy CEO Michael Saylor still prefer Bitcoin because they believe that Bitcoin is more secure in terms of hash rate and is more reliable given its constant supply and few changes to the protocol. Ethereum has been constantly evolving and has witnessed changes in circulation. MicroStrategy purchased another $414 million worth of Bitcoin on November 29. Saylor also explained why he thinks Bitcoin is the best choice, stating: “Bitcoin is the highest form of property ever invented by mankind.”