Ethereum Blockchain Developer Ecosystem Is Strong Despite Bitcoin’s Market Cap And Dominance
Ian McLeod, an analyst for Thomas Crown Art, believes that Ethereum has the power to overtake Bitcoin’s dominance in the market. He believes that this effort should only take about five years, despite the fact that it seems to only be 10% of the peak value they have established.
In an email to MarketWatch, McLeod said,
“Not only do we think it will rebound considerably before the end of 2018, I believe that over the longer time it will significantly dent bitcoin’s dominance. In fact, I think we can expect bitcoin to lose 50 percent of its cryptocurrency market share to Ethereum, its nearest rival, within five years.”
Some people believe that this is a tall order, considering the fall from $1,500 to $200 in under a year, while many cryptocurrencies followed them in their plummet. However, the demise also led to many people believing that the drop of value was far from over, believing it would reach record lows by September.
“It has allowed us to create a system to use artworks as a literal store of value. It also solves authenticity and provenance issues—essential in the world of art. All our works of art are logged on the Ethereum’s blockchain with a unique ‘smart’ contract.”
He also added,
“Unless bitcoin does more now to tackle scalability issues, and improves the technology it runs on, we cannot see how it can catch up with Ethereum over the next five years or so, when the crypto market will be even more mainstream.”
Still, investors should remember that Ethereum’s blockchain has faced problems with scalability and technology already. One idea being considered is the idea of migrating from proof-of-work to proof-of-stake, which might help to eliminate the compression on the blockchain that slows processing times. Right now, it can handle 15 transactions a second, while Bitcoin is only capable of handling about 3 to 5 transactions per second.
The main difference between a proof-of-work system and a proof-of-stake protocol has to do with the amount of power. In a proof-of-stake protocol, miners put a hold on their coins as a stake for validating transactions, while a proof-of-work system that needs more power to function.
However, McLeod believes that,
“Ethereum is already light years ahead of bitcoin in everything but price—and this gap will become increasingly apparent as more and more investors jump into crypto.”