Ether has greater potential than Bitcoin as a new cryptocurrency, and the newest EIP-1559 will help the digital asset trade more like a fixed asset, the CEO of Pantera Capital has said.
As the Ethereum London hard fork looms, Dan Morehead of Pantera Capital has predicted that the upcoming change would likely aid Ether in beating Bitcoin as the top cryptocurrency.
As a newer crypto, Ethereum has more potential than the current top-dog Bitcoin, Morehead stated at the Reuters Forum this week that the new Ethereum Improvement Proposal (EIP) 1559 upgrade will probably help the number two token to trade as a fixed asset.
One of the five planned changes in the Ethereum London upgrade which is planned, is EIP-1559. It is an anticipated upgrade to Ethereum’s current fee structure, introducing a new minimum payment method for Ethereum transactions and get away from the bidding system that miners use to prioritize only the highest bids.
The upgrade is created to change fees for users to only pay the lowest bid for every block, the EIP-1559 upgrade could possibly make Ether a deflationary asset.
“You will see a transition of those who want to keep their wealth, doing it in Ether instead of Bitcoin,” Morehead said, adding that the crypto’s shift to Ethereum 2.0 will greatly reduce Ether’s energy usage levels compared to Bitcoin’s. Ethereum’s wide use in decentralized finance apps would also aid Ether in growing larger than Bitcoin, he said.
Despite expecting a better future for Ethereum, Morehead is also optimistic about Bitcoin’s better future. The CEO predicted that the top crypto would rise to between around $80,000 or more by the end of this year, rising higher than $120,000 within a year. Greater mainstream usage might further push Bitcoin’s price to as mush as $700,000 over the next decade, Morehead said.
He is not alone in believing that Ether might outperform Bitcoin soon. Mike Novogratz, the CEO of crypto company Galaxy Digital, said in June that Ether might become the “largest cryptocurrency one day.”
Author: Blake Ambrose