Bitcoin and Ethereum have long had a consistent correlation for a long time so far. Over the years, both cryptocurrencies have been given technology updates to continue to lead the race. While the Lightning Network is helping Bitcoin increase transaction speed and scalability, ETH 2.0 along with other protocols such as ‘rollups,’ ‘sharding,’ and the switch from Proof-of-Work to Proof-of-Stake is intended to help ETH mark its territory.
Vitalik Buterin’s behavior pushed ETH prices up more than 17% on the day
In a recent podcast, Vitalik Buterin, co-founder of Ethereum, stated that ETH2.0 is a collection of significant upgrades that the ETH ecosystem has wanted to make long ago. The two major upgrades on Ethereum are ‘sharding’ and ‘Proof of Stake switchover, ‘which are expected to bring many benefits to the network.
As AZCoinNews reported, Sharding solves a significant problem with blockchains, which is scalability. Here, instead of every participant in the network having to download and verify every transaction personally, every participant in the network only downloads and verifies a small portion of transactions.
There has been a lot of speculation about this transition. While some people think that Proof-of-Stake can help reduce hacking and minimize energy consumption, are more environmentally friendly than PoW, some argue that Proof-of-Stake can cause centralization.
And this argument is explained as follows:
“The PoS system favors entities with a higher amount of tokens over those with lower amounts. This might result in more substantial stakeholders ending up with larger profit margins. Thus, more substantial stakeholders grow faster than a small stakeholder. At a certain point, when the cost of being part of the mining operation gets expensive, small stakeholders may have an option but to drop out, causing centralization.”
However, when asked about this risk, Buterin stated that Proof-of-Stake was not focused, asserting that Proof-of-Work is much more focused than Proof-of-Stake.
However, that was only a confirmation from Buterin. There is no actual evidence that this will or will not happen. So, in case this risk doesn’t happen, can ETH, with all of its protocol implementations, lead the race and beat Bitcoin? Let’s wait and see!
It is still possible that Bitcoin will be beaten in terms of technology, not price
The Director of Marketing at ‘SetProtocol ‘and co-founder of ‘ethhub_io,’ Anthony Sassano, thinks that this might be a possibility.
Sassano compared Bitcoin and Ethereum according to the protocols. He concluded that the Lightning Network had failed so far, and had no relevance to the product market.
Further explaining, he said:
“No one wants to spend their Bitcoin [….] I feel like if Bitcoin were able to build a stablecoin on top of Lightning Network in some way, that would be a much better product-market fit then relying on people to want to spend their BTC.”
Anthony Sassano, Director of Marketing at ‘SetProtocol ‘and co-founder of ethhub_io
Sassano said Bitcoin was inherently limited in what it could do, plus there was no reason to force it to do something it wasn’t designed to do because it wouldn’t work. Commenting on other upgrades on Bitcoin, he emphasized that updates don’t change what Bitcoin fundamentally is, although it could increase its capability.
He concluded:
“And that’s exactly what happens with the Ethereum where we have these fundamental base that can do so much more than what a Bitcoin can do. And that’s why we cant see Ethereum being able to do all this stuff that Bitcoin can’t do.”
Bitcoin crossed the $ 6,000 threshold with impressive gains, will institutional investors come back?
A reliable buying force occurs when positive opinions appear in the traditional market afterward. Bitcoin is closely watching developments in other markets when the Corona epidemic is unpredictable. However, yesterday was the day Bitcoin was utterly independent of the stock and oil markets when both markets tested new lows. Accordingly, today Bitcoin, in contrast, had a 21% increase to reach $ 6,646.
Today’s rally in the stock market and oil may help the overall sentiment become more positive, as the US stock index rebounds slightly as soon as President Trump talks about the possibility of a Covid remedy. -19. Meanwhile, WTI and BRENT futures prices increased by 21.4% and 12.9%, respectively, when investors realized that oil was in a state of over-selling.
The crypto community yesterday also feared that selling pressure could also drag Bitcoin back to the old price threshold. However, this coin still holds the threshold of $ 6,600 so far.
Source: CoinMarketCap
One of the reasons Bitcoin has plunged dramatically is because many institutional investors left the market to get cash before the Corona disaster broke out quickly.
When the market cools down, many organizations that follow will probably try to return to the coin. However, it is still too early to talk about the issue. The market is always on alert when many analysts believe that the global crisis may occur.
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