Research: Ethereum Could Become a Store of Value and Outperform Bitcoin

Although it has been around for quite some time, the crypto world is a rather new sphere with so many myths and complexities to unravel. As a continuously evolving technology with multiple stratospheres, it is a little too difficult to fully comprehend every layer of this sphere of it at a glance. We can only try, which is why crypto experts continue to propose theories and give speculations targeted at demystifying this interesting, yet complex world of crypto.

In this article, we will take a quick look at the extensive ‘ride’ the Delphi Digital team had in the Ethereum world. The team took the time to curate an extensive report about what the Ethereum blockchain is all about, its journey so far, some of the problem facing this layer of the crypto world, the shift from proof of work to proof of stake (Ethereum attaining Serenity, the new, more scalable version of the cryptocurrecy), their concerns, and a host of other issues.

The goal of the report, according to the team, is to help ignite greater discussion about the future and sustainability of the Ethereum blockchain, especially as it transitions to Serenity. Let’s get started!

A quick definition of Ethereum depicts the crypto innovation as an open-source, public computing system based on blockchain technology. This computing system wields power to aid smart contract functionality and dApps. This stratosphere of the crypto world was created in 2014 by a crypto expert called Vitalik Buterin. Buterin officially introduced the Ethereum blockchain in January 2014 and the yellow paper was published a few months after (precisely April) by Gavin Wood.

Since its creation, the Ethereum blockchain has helped to revolutionize so many facets of our world today. This innovative network boasts the largest smart network in the crypto world today. Powered by its virtual fuel, Ether (ETH), the market value of this network is currently capped at $14,503,610,486 USD, with a trading price of $137.96 per ETH. The market value shows that this is, obviously, one of the largest cryptocurrencies today.

The report shows that the aggregate fees paid to the network could grow substantially as the usage and complexity of applications built on Ethereum grows. Additionally, the team believes that the demand for Ether may increase if the logistics behind Serenity’s PoS model pose an attractive yield for validators. Among the major concerns outlined by the team include the challenge posed by the trade-off between ETH issuance and network security. They believe this singular factor may challenge Ethereum’s long-term viability.

In terms of being a store of value (SoV), although they believe Ethereum could later become a store of value, the team is, however, of the opinion that Bitcoin currently beats Ethereum to it. The reason being that Bitcoin’s monetary policy hasn’t been subjected to change whereas Ethereum’s, on the other hand, is yet to be figured out. This rules out Bitcoin’s finite supply nature and gives it an edge over other cryptocurrencies, including Ethereum, as the perfect SoV at this time. Fascinatingly, the report suggests that Ethereum could outperform Bitcoin in the next bull run.

Interestingly, just recently a different report has indicated that Ethereum is still much more progressive than Bitcoin in terms of development as it has over four times as much as the active developers than the largest cryptocurrency.

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