Academic Research in Australia suggested that Ethereum is Better than Bitcoin. The former is on the road to becoming the world’s first deflationary asset.
Ethereum (ETH) is known as the second-best cryptocurrency. But the recent paper published by Australian researchers suggested that after the Ethereum Improvement Proposal (EIP) 1559 upgrade Ethereum has become a superior store of value than Bitcoin.
EIP 1159 upgrade was brought on Ethereum blockchain in August. Ever since 1 Million Ethereum has been removed from the circulating supply. This has diminished the supply of ETH which is a primary quality of deflationary assets. As per the report, 50% of Ethereum minted in a day a burnt as a gas fee.
Also Read: Crypto Ban in India – The FUD
The demand for ethereum is soaring with its state-of-the-art blockchain ecosystem. As more and more people use Ethereum the price of ETH will increase whilst declining supply thanks to EIP 1159.
Bitcoin will cap at the supply of 21 Million. Although many consider BTC a hedge against inflation but unlike Ethereum, BTC has no mechanism of removal from the supply.
“Annualizing the rate of Ethereum creation since EIP-1559, the expected increase in the total Ethereum supply is only 0.98%, being less than half the 1.99% increase in Bitcoin supply which is almost certain in the same period.”
The conclusion of the research suggested that Ethereum is an excellent hedge against inflation. Therefore, Etehreum is better than Bitcoin in terms of being a store of value.
Investors have been exploring this store of value assets during the pandemic. The surge of money printing has greatly devalued the Dollar. In this scenario, Cryptocurrencies have provided a better alternative.
Ethereum’s development team has been working ardently to improve the blockchain. A number of upgrades have been introduced to turn Ethereum into Ethereum 2.0. The supporters of ETH call it ‘ultrasound money’ which makes Bitcoin (sound money) a second best.