Bitcoin’s specialty is its complete decentralization, no leader, and very specific technical characteristics that make it more scarce than any other asset on earth.
For these reasons, Bitcoin will play a more important role in the future of humanity than any other cryptocurrency.
After reading this few lines, you will understand Sylvain Saurel – the author of the article is a Bitcoiner. However, he is not the one who maximizes Bitcoin, but is simply a Bitcoin fanatic.
He firmly believes that Bitcoin is still king of the future, but should also look at other cryptocurrencies that help solve real-world problems.
Ethereum has the largest ecosystem
Ethereum launched on July 30, 2015, after nearly four years of hard work Vitalik Buterin. Inspired by Bitcoin in 2011, he decided to invent a new protocol that allows users to create completely smart contracts using the Turing language.
“From the very beginning, Ethereum was different from Bitcoin in that it provided smart contracts as well as decentralized applications.”
In its field, Ethereum benefits from this leading edge.
The Ethereum blockchain quickly became a popular choice for many people. In the following years, many crypto projects were launched on the platform and used ERC20 tokens.
“By 2020, a lot of promising crypto projects will work on the Ethereum platform.”
These projects have solved real-world user problems and therefore have real potential for the future.
Maker is the smart contract platform on the Ethereum Blockchain and currently ranks 25th among the most capitalized cryptocurrencies (around $ 640 million).
The Basic Attention Token project promotes an open Web model through Brave (a privacy-friendly browser) that is also based on the Ethereum Blockchain.
“The market capitalization of Basic Attention Token is 384 million as of February 22, 2020”.
Nexo specializes in providing instant credit lines in cryptocurrency that also work on Ethereum and make significant profits.
Enjin signed a partnership with Microsoft and Samsung to put ENJ cryptocurrency into operation. It is the leading Blockchain-based game company. And again, ENJ works through Ethereum.
Not only that, there are many examples of successful cryptocurrencies on Ethereum such as USDC, REP, DAI, OMG or SNX.
“Hence, Ethereum has the largest ecosystem in the cryptocurrency industry.”
The total market cap of all these projects gives even greater power to Ethereum, which already had a market cap of $ 28 billion on February 22, 2020, ranking second after Bitcoin.
Ethereum is a representative index of altcoin behavior
As such, most of the most promising altcoins on the market are based on the Ethereum Blockchain. Hence, Ethereum can be considered as a representative index of Altcoin behavior.
“By buying and then hodling ETH from Ethereum, you benefit from the remarkable potential success of many Ethereum-based altcoins.”
As Alt Season takes place in the world of crypto, the simple fact of owning ETH will allow you to benefit from it.
Even as Bitcoiner, you shouldn’t miss such an opportunity.
If Bitcoin is still the priority in the portfolio, then it is possible to diversify with 20% ETH, for example.
By choosing ETH instead of trying to find the right Altcoin, you clearly limit the risk.
Ethereum is a hegemonic leader in the dApp space
If Bitcoin benefits from a first-mover advantage in the world of crypto as a whole, then ETH benefits from a similar decisive advantage in the world of smart contracts and dApps.
“Today, more than 3,300 decentralized applications are running on the Blockchain”.
These dApps target many areas: gaming, social, finance, development, media, healthcare, insurance, property, …
If blockchains like EOS or NEO have ambitions that will one day dethrone Ethereum in this field, you must admit that they are far from doing so.
“As of February 22, 2020, the Ethereum platform is the one with 2,775 active applications.”
As a result, Ethereum dominates 84% of the dApp market.
Its closest competitor is EOS with 321 dApp. NEO is far from being a real competitor to Ethereum with just 20 dApps on the Blockchain at the moment.
The dApp market is expected to grow in the future. The fact that Ethereum is a hegemonic leader in the field is the reason why you should seriously consider ETH for the future.
The promising DeFi world on Ethereum is almost exclusively monopoly
DeFi stands for Decentralized Finance. The term is in contrast to traditional finance, which some people call CeFi (Centralized Finance).
“While Bitcoin has facilitated the creation of a completely decentralized and secure payment system, DeFi allows for the decentralization of financial services.”
DeFi relies on platforms such as Ethereum that support smart contracts, which can then write and execute decentralized programs capable of creating anonymous financial transactions.
Through smart contracts, some traditional financial instruments become decentralized and no longer controlled by a single entity.
“The loan market, the derivative market or the asset market is one of the most promising sectors in the DeFi world.”
Financial services provided through smart contracts have 3 basic advantages:
- Cannot be manipulated. Once registered on the Blockchain, it will not be changed and will be due regardless of what happens.
- Absolutely predictable. The behavior follows what is specified at the time the smart contract was created.
- Public and therefore verifiable by anyone.
These capabilities are provided by unique tools and open up new possibilities for investors.
Total locked value in DeFi (USD)
“As of February 22, 2020, more than $ 1 billion in value is locked in the DeFi market.”
For many, DeFi is sure to be even more successful in the coming years.
“What’s interesting for Ethereum is that over 95% of the current DeFi market is based on this Blockchain.”
Maker, which works on Ethereum, has over $ 600 million locked up at the moment, demonstrating a dominance rate of more than 57% in the market.
Ethereum once again has a decisive advantage over competitors in the field of rapid expansion. Hence, considering what awaits DeFi in the future, it seems smart if HODL has some ETH as it will benefit from DeFi’s success.
The end of 2019 marks a historic turning point for Ethereum with the launch of the Ethereum 2.0 project. This new version allows Ethereum to secure its place in the future. Implementation will last until 2021.
“With Ethereum 2.0, Vitalik Buterin’s Blockchain will say goodbye to Proof-of-Work by switching to Proof-of-Stake”.
Ethereum chose to sacrifice the decentralization of the network for increased performance. With Ethereum 2.0, the number of valid transactions per second will skyrocket.
For some, this choice is taboo. Others understand that there is only one place for a completely decentralized cryptocurrency and that is Bitcoin.
“A project like Ethereum and others must be willing to make concessions in this regard.”
The concept of Shending is the basis that allows Ethereum to achieve a lot of success in terms of scalability. By the end of phase 1 of Ethereum 2.0 rollout, 64 shard chains will be deployed.
Each shard chain is allowed to perform parallel transactions on the Ethereum network. Additionally, more shard chains can be added in the future if the need arises.
Finally, a new virtual machine called eWASM is part of the program that enables faster execution of decentralized applications.
Ethereum 2.0 is clearly a big bet on the future of Vitalik Buterin and his team. If Ethereum succeeds in this important technological change, the foundation will dominate the field for many years to come.
Therefore, rethink buying ETH to benefit from Ethereum’s dominant position in the future.
Bitcoin is sure to be phenomenal success in the coming years. But being a Bitcoiner doesn’t mean that only Bitcoin has real benefits.
The author also believes that Ethereum will have an important role to play in the future along with Bitcoin.
Ethereum is the leading platform in the world of smart contracts and dApps. Besides, it is also the technical basis for most cryptocurrencies with a real future such as BAT, NEXO or ENJ.
Its leading position in the world of smart contracts also allows Ethereum to have a crucial competitive advantage in the DeFi world, set to literally explode into the future.
All of these Ethereum use cases will have a strong impact on ETH tokens that are increasingly difficult to earn. This scarcity will necessarily drive prices up.
Hence, to benefit from the burgeoning markets of the coming years, you should consider Ethereum a great way to diversify your portfolio, even if you are a convincing Bitcoiner.