According to leading strategist and investing expert Lyn Alden, Bitcoin is likely to be more successful over time even if Ethereum manages to become technologically superior like Concorde over other planes. She made these comments during an analysis post on her personal blog titled “An Economic Analysis of Ethereum”.
Ethereum has long been touted by its proponents as a technologically superior cryptocurrency that would dislodge Bitcoin at the top. The latest series of updates based on the ongoing Ethereum 2.0 upgrade have also brought the cryptocurrency back into the limelight after a few years in obscurity. Some analysts are betting big of the cryptocurrency project and believe that it has the right ingredients to succeed further and even challenge Bitcoin itself for the top spot. However, others are unsure about it.
In her extensive analysis Alden tries to prove that Ethereum’s tech is futuristic yet but limited in practicality and Economics side of things. She likened it to the infamous British-French supersonic airliner named Concorde. The plane was and remains to this day an engineering marvel. It was a supersonic people carrying plane built in the 80s that could cross the Atlantic in less than three hours in ideal conditions.
It remains to this day the fastest jet ever commissioned by airlines for commercial endeavours. It is considered a modern engineering marvel and even with advanced tech of today, we are yet to develop a supersonic airliner just as fast if not faster than the Concorde itself. This is the legend of the famous aircraft.
However, the Concorde is also famous for being a failed economic project. The world didn’t know what to do with the Concorde; its maintenance was difficult and taxing for everybody, its flight safety record was poor and its ticket prices were very high. According to leading economists, Concorde was a slow failure. It was grounded permanently at the turn of the century and is yet to come back to service since then. According to Alden, Ethereum is like that in many ways.
She writes:
Ethereum could indeed do very well over the next year in terms of price, but as long as it’s transforming its base layer, it remains a speculation in alpha development, rather than a finished/stable product.”
Bitcoin, with its fixed supply of 21 million tokens was a much better economically viable system according to Alden and she believes the cultural divide is another major difference between the two cryptocurrency networks. Ethereum is all about experimentation and becoming better while Bitcoin is more of a stubborn system that only works as it was designed to and is resistant to change. Therefore, it is likely to employ things that are proven to work.
Ethereum has recently gone into a considerable bull run phase with the price index consistently being above $1000 for a while with a market cap in excess of $130 billion. Despite the tremendous recent rise, Ethereum is still lagging behind Bitcoin in long-term statistics and is yet only a fraction of the total Bitcoin market and its pulling power.
Image source: pixabay.com
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