In the recent shitshow in crypto, BTC has fallen back to January levels, but ETC hasn't. ETC is close to double what it was in January. That's saying something! ETH is the going to take over.
About 1-2 months ago the big news came out that financial and corporate players were hiring Ethereum devs. This sent ETH mooning for a a while. It was booming, despite the high Txn costs of hundreds of dollars. That didn't phase it.
Then came the negative news selling the huge dip we've seen these past few weeks. Is it over? ALl it takes is more FUD and there will be more selling. But ETH will drop the least from what I'm seeing.
There is an article on ZeroHedge that still sees ETH taking over BTC: "The Amazon Of Information": Goldman Initiates On Crypto, Sees Ethereum Overtaking Bitcoin.
It's pretty damn long, but I'll just point to some visuals that show some key indicators.
The author does lean towards gold outliving oil and bitcoin, since they see the competing networks leading to bitcoins demise as the network decays. This can be seen with ETH's rise and eventual network supremacy relative to BTC.
ETH is creeping up, or jumping up, and is going to match BTC soon.
Another point they make is that "Transactions drive value". DeFi and NFTs brought lots of traffic, and that did drive a lot of the value for ETH. It's kept it going strong with less downswings in the dumps.
Because the coin holders have a stake in the network, speculation spurs adoption; even during bust periods, coin holders are motivated to work to create the next new boom.
As people buy, the drive the price up. Why buy? Speculation that it will go up, and wanting to get in on something that will gain value. That drives the value up.
Right now, there doesn't seem to be much speculation going on that driving the price up. At least, that bull-factor is being matched and countered by the bear-factor. While people still think the prediction of BTC at $100k will happen, there seem to be an equal amount or more thinking it's over and that the bear has arrived.
At least for now. Maybe in a few weeks all that will change. Money will rush in to buy and push the price up as we head towards the fabled $100k or more ATH for the end of the cyclical bull run. And maybe that won
t happen and we need to wait 4 more years.
Either way, if you buy now, you either win in the short term this year, or you just have to hold onto to it for the next mega bull run in the long term. Barring some crazy thing that prevents a bull run from ever happening again, you can't really lose at buying this huge dip.
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If the market cap of ETH were to flip BTC, does that necessarily mean that the price will flip too?
That outcome, if it ever happens, is very far away. Major shift would need to occur. The market cap can flip much quicker.
Posted Using LeoFinance Beta
Very wise comment !
Perhaps but it is more of a question.
ETH is only 0.06123709 BTC today, it's market cap is $266,071,417,492 with a supply of 115,986,120 ETH / infinity, which begs me to ask, what is the supply limit of ETH?
There are 402,753 ERC20 Token Contracts (with unknown quadrillions of tokens), and 11,478 ERC-721 (NFT) Token Contracts. ETH is $2,298.47 and BTC is $37,535.90 with $702,428,778,757 Market cap, and a fixed supply of 18,713,700 / 21m Bitcoins. These numbers come from CoinGecko and Etherscan.
My point however is this... if there ends up being more than 702b in ETH and say, 266b in BTC, does that mean the price of ETH will be higher than BTC? I am not so sure.
I think that the price of ethereum will never be higher than the price of bitcoin. Even to buy ethereum some people need bitcoin to do so. Most of other crypto use bitcoin to trade. Almost all and even maybe all exchanges use bitcoin as a main currency. Fees are lower in bitcoin and fees in ethereum are going higher and higher. The syply is much bigger of ethereum, so the inflation should be higher. Bitcoin is limited to 21 million, so it will cost crazy when those 21 million will be mined. Now, whales decided to dump it to buy more, they know the potential. I never lost my faith in bitcoin. Compare it to 5-6 years ago and look at it now. It was about $600 and hit 60k. It's a crazy +1000% !
BTC only has to 3x from here to be $112,035.
What are the chances that will happen?
https://seekingalpha.com/article/4187726-bitcoin-16000-to-28000-year-end
A lot. When those whales decide to earn big profit again, they will push it tothe top. People who invested $697,461,307,868 in bitcoin today aren't playing games ! They know what they are doing !
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