Amid the looming Ethereum London laborious fork, Pantera Capital CEO Dan Morehead predicted that the upcoming improve would probably assist Ether (ETH) outpace Bitcoin (BTC) as the most important cryptocurrency.
As a more recent cryptocurrency, Ether has extra potential than Bitcoin, Morehead mentioned on the Reuters International Markets Discussion board on Monday, noting that the newest Ethereum Enchancment Proposal (EIP) 1559 improve will assist the digital token to commerce extra like a set asset.
One among 5 EIPs in ETH London improve, EIP 1559 is an anticipated replace to Ethereum’s current price construction, introducing a minimal fee for sending Ethereum transactions and transfer away from a bidding system that enables miners to prioritize the best bids. Designed to programmatically modify charges for customers to pay the bottom bid for every block, EIP 1559 improve would probably make Ether a deflationary asset.
“You’ll see a transition of people that wish to retailer wealth, doing it in Ether quite than simply Bitcoin,” Morehead predicted, including that the cryptocurrency’s shift to Ethereum 2.0 will considerably scale back Ether’s mining power consumption ranges in contrast with the considered one of Bitcoin. Ethereum’s extensive implementation in decentralized finance purposes would additionally assist Ether develop greater than Bitcoin, he mentioned.
Regardless of predicting a brighter future for Ether, Morehead remains to be optimistic about Bitcoin’s progress sooner or later. The CEO reportedly predicted that Bitcoin would commerce between $80,000 and $90,000 by the top of 2021, rising above $120,000 inside a 12 months. Surging mainstream adoption may additional drive Bitcoin value to as excessive as $700,000 within the subsequent decade, Morehead famous.
Associated: Ether value hits 2-week excessive as London laborious fork momentum builds
Launched in 2015, Ether is the second most valued cryptocurrency, with a market capitalization amounting to $290 billion on the time of writing. Scheduled to happen on Wednesday, the Ethereum London is among the greatest Ethereum upgrades designed to maneuver its blockchain from proof-of-work to proof-of-stake, that means that the community would largely depend on staking as an alternative of mining. Launched in 2009, Bitcoin depends on the PoW consensus algorithm.
Morehead isn’t alone in pondering that Ethereum may outperform Bitcoin sooner or later. Mike Novogratz, founder and CEO of crypto funding agency Galaxy Digital, predicted in late June that Ether may develop into the “greatest cryptocurrency in the future.”