Bill Barhydt, CEO and inventor of popular cryptocurrency wallet service Abra, explained why he thinks Ethereum is a much better investment than Bitcoin.
He also set a price prediction of $40,000 for ETH, indicating his confidence in its future development.
He also noted that Ethereum is used for various purposes, such as DeFi, stablecoins, NFTs, and even games.
Moreover, it has the “network effect”, which means that the value of cryptocurrencies is likely to increase as the number of customers increases, making it even more useful.
Positive Use Cases of Ethereum
Its central argument is that the use of Ethereum is what makes it so valuable.
Bitcoin’s network effects, according to Bill, turn it into a reserve asset that is trustless, immutable, and cannot be manipulated; it’s hard money.
In terms of flexibility, reliability and increase in value, the effects of the Ethereum network are much more practical in terms of short-term exponential development.
Additionally, while the quantity of Bitcoin is fixed, due to the Ethereum burn, Bitcoin has become deflationary, meaning its supply is decreasing over time.
ETH total market cap at $309.68 billion on the daily chart | Source: TradingView.com
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Ethereum seems to dethrone Bitcoin as the top crypto
With that in mind, Ethereum is extremely likely to dethrone Bitcoin over the next 10 years, some analysts have said.
Ethereum, which has long been Bitcoin’s main large-scale rival, has several technological challenges it would need to solve to dominate the market.
This is precisely what Ethereum developers hope to achieve with their next update to the underlying blockchain, dubbed “Ethereum 2.0”.
Upcoming changes will include the implementation of a processing technique known as sharding.
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Currently, all data added to the blockchain version must be verified by all participating nodes. But by incorporating sharding into the mix, Ethereum 2.0 can significantly improve the efficiency of its resource usage.
The new system will achieve this by dividing data verification tasks between groups of nodes, with each node solely responsible for verifying the data it receives.
This allows the entire blockchain to use parallel processing, potentially increasing the overall capacity by a greater magnitude.
Ethereum is transitioning from Proof of Work (PoW) consensus to Proof of Stake (PoS) consensus. It was planned as an essential part of Ethereum’s scaling strategy through upgrades.
Negative outlook for ETH
ETH is priced around $2,577.25 early Monday, 0.39% lower than the previous day due to rapid volatility rates.
The crypto posted a low of $2,493 and a high of $2,602 due to timely changes in cryptoassets and earnings in the global cryptocurrency market.
After all this discussion, Barhydt concluded:
“I assume you’re talking potentially between $30,000 and $40,000 Ethereum.”
Meanwhile, Finder.com said a group of fintech professionals are more pessimistic about their outlook than Abra’s chief executive.
The panel’s previous predictions pegged the price of ETH at $51,798 by 2030. This figure has been reduced to $26,338.
Coingecko reports that Ethereum is trading at $2,518, at the time of this writing.
Featured image from YouTube, chart from TradingView.com