So, as per new academic study, Ethereum (ETH) has one key to make it a superior store of value than Bitcoin (BTC).
Furthermore, this recent study on the Social Science Research Network. So, ETH’s built-in deflationary mechanics sets it apart from BTC.
“Bitcoin, with a finite eventual supply of tokens, is increasingly gaining acceptance as an alternative…”
“long-term digital store of value with similar anti-inflationary characteristics to gold.”
“However, recent innovations on the Ethereum blockchain have shown that it is possible for…”
“cryptocurrencies to become deflationary –….”
“specifically through the destruction of transaction fees.”
More so, Ethereum adds permanently burning transaction fees earlier this year in order counter inflation by introducing the London hard fork.
Notably,The upgrade has burned $3 billion worth of Ethereum since the end of October.
“We show that following the recent change in its transactions protocol, the digital currency…”
“Ethereum displays a significantly lower net issuance rate of tokens than Bitcoin,…”
“achieved by destroying the fees associated with each transaction.”
“In many cases the amount of Ethereum burned outpaces the network’s creation of new tokens,…”
“resulting in Ethereum potentially becoming the world’s first deflationary currency.”
“We argue that this provides better inflationary hedging properties than Bitcoin,..”
“and Ether may therefore offer a superior long-term value storage than Bitcoin.”
Currently, it is trading below $3,937, as the general market sees massive decline.
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