According to Pantera Capital CEO, as a younger cryptocurrency, Ether has greater potential than Bitcoin. The latest EIP 1559 will let the token trade more like a fixed asset.
Morehead states Ether has greater potential than Bitcoin
Pantera Capital CEO Dan Morehead stated that the impending Ethereum London hard split would likely help Ether (ETH) overtake Bitcoin (BTC) as the most popular cryptocurrency.
On Monday, Morehead stated that Ether has greater potential than Bitcoin since it is a younger cryptocurrency. He said that the Ethereum Improvement Proposal 1559 upgrade would enable the digital token trade more like a fixed asset.
EIP 1559 to update Ethereum’s Fee structure
EIP 1559, one of five EIPs included in the ETH London upgrade, is a planned update to Ethereum’s present fee structure. It provides a minimum payment for sending Ethereum transactions. Therefore, moving away from a bidding mechanism in which miners prefer the highest bids. The EIP 1559 update, designed to programmatically modify fees such that users pay the lowest bid for each block. Thus making Ether a deflationary asset.
“You’ll see a transition of people who want to store wealth, doing it in Ether rather than just Bitcoin,” Morehead projected, adding that the cryptocurrency’s transition to Ethereum 2.0 will drastically lower Ether’s mining energy usage compared to Bitcoin’s. He believes that Ethereum’s widespread use in decentralized finance applications will help it grow larger than Bitcoin.
Morehead also believes in Bitcoin’s success
Despite his predictions for a brighter future for Ether, Morehead remains hopeful about Bitcoin’s future growth. According to reports, the CEO anticipated that Bitcoin would trade between $80,000 and $90,000 by the end of 2021, with a year-end price of $120,000. According to Morehead, rising mainstream adoption may push Bitcoin’s price above $700,000 in the next decade.
Morehead is not alone
Ether, which was launched in 2015 and currently has a market valuation of $290 billion, is the second most valuable cryptocurrency. The Ethereum London, which will take place on Wednesday, is one of the most significant Ethereum upgrades. Intending to transition the blockchain from proof-of-work to proof-of-stake means that the network will rely on staking rather than mining. Bitcoin, which was launched in 2009, is based on the PoW consensus algorithm.
Morehead isn’t the only one who believes Ethereum will eventually outperform Bitcoin. In late June, Mike Novogratz, the founder and CEO of crypto investment firm Galaxy Digital, projected that Ether would become the “biggest cryptocurrency one day.”s
