Why Ethereum is Better than Bitcoin or any Other CryptoCurrency

Ethereum potential

This is not the first time encrypted assets face such plunges, the same happened in 2018 when Bitcoin plummeted by 80%, the sky rise and sky fall in the crypto world are normal, Bitcoin’s limited supply and scarcity is not enough for its price increase but the demand is the core feature against the price increase just like the gold which is still recognized as the store the value medium, Ethereum enforces the reduction and the unpredictable growth of money supply rather than maintain the constant number of the money supply, Ethereum also not enforces the upper limit on supply of currency but limit the annual supply of currency.

The Ethereum is not only a cryptocurrency just like Bitcoin or Dogecoin but a complete OS of the crypto world, Ethereum smart contracts provide new ways to create decentralized applications in the financial domain, and the most used non-fungible tokens (NFT) also based on the Ethereum platform.

Due to NFT and Defi Etheruem has a larger transaction volume, the Ethereuem ledger store almost any type of data on the network and would be used as tokenized objects across the blockchain, this also makes Ethereum a comprehensive and large scale distributed blockchain network.

In the last five years, Ethereum gained huge user traffic that is equivalent to Bitcoin, furthermore, Ethereum undergoing a rapid upgrade from Proof of Work (PoW) to Proof of Stake (PoS), this will create so many advantages for the Ethereum network, this upgrade will not only reduces the energy efficiency problem but also create challenges for further Bitcoin investment

According to Goldman Sachs, Ethereum has the potential to replace Bitcoin, currently, a market capitalization of around $250 billion compared to bitcoin’s $660 billion, and it shows that sooner Ethereum will overtake Bitcoin and become a tool unique tool for store the value.

However, Investors valued Bitcoin due to its scarcity and marked Bitcoin as an exotic commodity there are four types of risks associated with Bitcoin investment

1. Market
2. Transaction
3. Technology
4. Compliance

Market

Due to Bitcoin scarcity, investors always assume that Bitcoin shows resemblance with gold therefore this commodity is good for attracting others investors.

Transaction

Because of the greedy behavior of many investors and the desire to get rich overnight, the trading leverage of Bitcoin is usually magnified by 10 times, therefore many experts recommend not to buy Bitcoin because of the high risk associated with unexpected transaction volume.

Technology

When the crypto world faces a sudden downturn just like the current plunge the Bitcoin-related platforms and apps unable to cope with the demand side of the user requirements.

Compliance

Due to decentralization and a high degree of anonymity Bitcoin may be used as the carrier to transfer the money between illegal and criminal activities, Bitcoin provides enough freedom for the transactions of drug trafficking, smuggling, and illegal fund-raising.

Conclusion

There are many types of cryptocurrencies available in the encrypted world like Dogecoin, USDT, Polka Dot, and BNB but the needs of the financial application and diverse business requirements only fulfill by the Ethereum Network, for those who recently interested in crypto investment, the Ethereum digital assets are recommended not only overnight profit gain but also Ethereum is the foundation of our future financial system.

Source: https://medium.com/cryptocurrencies-ups-and-down/why-ethereum-is-better-than-bitcoin-or-any-other-cryptocurrency-97c8ea734c49?source=rss——-8—————–cryptocurrency