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ETHEREUM With the Potential to Be Greater than Bitcoin

The competition between the two cryptocurrencies Bitcoin and Ethereum has been dragging on for a long time, unsettling major investors. However, each coin has different characteristics.

JP Morgan comments: Investors should hold Ethereum over Bitcoin, due to higher interest rates. It was noted that higher interest rates on bets on Ethereum can support the price of ETH to rise further. This could become as dangerous to Bitcoin as the dollar is to gold.

Bitcoin may drop in value.

The monetary policy of the central banks has led to lower interest rates and bond investments. The main drivers of this are the heavy monetary packages that have been printed since the Corona pandemic and are still being printed today.

Cryptocurrencies like Bitcoin have grown due to this situation, as people seek their fortune in investments to escape the declining purchasing power. Another factor is decentralization, which makes cryptocurrencies even more attractive to people.

Now that some central banks are making a delicate attempt to reduce the stimulus packages to counteract rising inflation, interest rates could rise again. This could ultimately put Bitcoin under pressure just as it did with gold.

Another factor for Ethereum is that investors are paying more attention to investments that have an impact on the environment and society, and have shifted their attention from the energy-intensive Bitcoin blockchain to the Ethereum blockchain.

Bitcoin was hit hard last year because it uses proof-of-work algorithms, which are energy-intensive when mining coins.

These factors could strengthen Ethereum, the second-largest coin in the world, after the change to Ethereum 2.0. This change could boost it ahead of Bitcoin in the future.

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