The money transfer services are here to stay and long as the consumer looks for flexibility, more and more cryptocurrencies will keep popping up. Bitcoin started as an alternative to the traditional banking systems; it did not fully cover the perceived gaps in the market which saw the entrance of Ethereum among other currencies.
As a consumer, you look at what solves your problems and not the means to achieve your dreams. There are many cryptocurrencies out there but choosing the right one for your transactions depend on convenience and affordability. Without competition, the consumer has no choice but deal with what is on offer.
The speed to transfer funds reigns supreme to the consumer. When you cannot send or receive funds when you really need it, it becomes frustrating. The Bitcoin keeps experiencing congestion that users are looking for better alternatives and are choosing other cryptos. The only available alternative is Ethereum among other upcoming currencies.
Bitcoin transaction fee is based on the amount and the speed of transactions tends to favor those transferring huge amounts. The fee for transferring a million dollars may seem bearable but when you try sending 5 dollars, it is the miner who gets the best of your funds. Being a small business person does not work well with Bitcoin.
Practical Example of an Transaction in Both Blockchains…
If you are sending 10 dollars on the Bitcoin network, you can wait for over 10 hours for your transaction to be mined while a user transferring 1 million dollars waits for less than 10 minutes. With Etheruem, the speeds are standard and transaction fees on the network are low and adjustable.
The future of Ethereum is based on the ICO status; apart from existing Initial Coin Offering, more are underway. All these and other upcoming projects need digitals currency and are relying on the Ether. This is an investment that you need to take advantage of. There are over 350 projects anticipated on the Ethereum blockchain and the number keeps going up daily. It needs to be seen how developers in the Ethereum platform play their cards towards Ether price increase.
Ethereum history is not the healthiest, the split between the original Ethereum and the growth of Ethereum Classic is a plus for the former; too much publicity has exposed the real benefits of investing in ETH. Little was known about Ethereum until the DOA crisis. The publicity saw the growth of user base and a shift from Bitcoin was noticed.
Ethereum is all about convenience; you can send money anywhere at affordable rates. Try Bitcoin and you are hit with network congestion which slows down your transactions, this increases the cost of sending funds. User experience is what is selling Ether. Why should you spend more with Bitcoin when Ethereum fees are affordable?
Bitcoin Reputation Lacks When Compared with Ethereums
The corporate world plays a major role in the digital money markets; they do or break the market growth. Corporate attention is leaning on Ether side; it has brought about the ‘Ethereum Enterprise’ to a new perspective. Many companies are buying ETH more than BTC, a reason to celebrate on Ethereum future.
Consumers are moving towards price discovery; however, it is not easy to measure the Ether future prices’, comparing historical data is a clear indicator of the direction where Bitcoin and Ethereum are headed. As much as you cannot predict Ether future price, demand and supply gives a clear future of the two cryptos.
Bitcoin lags behind in value transfer while Ethereum is focused on this front. This has contributed positively to the Ethereum capitalization. The consumer is finding the Ethereum ICO more appealing and their projects are attracting more attention from both the individual and corporates. Currently only ICOs on Ethereum are being accepted leaving Bitcoin at a standstill; at least for now!
The question you should ask is what will happen when Ether attains BTC capitalization. As much as there not many spenders in the cryptoaphere, there is hope that capitalization will grow across the board. If in the near future Ethereum will have 90 million Ethers each selling at 200 USD, the capitalization will be around 19 million; where does this leave Bitcoin? Your guess is as good as mine!
However, not everything is set to move the Ether way; anything can happen and cryptos’ growth might tumble and the highest may hit the ground softly. When you use time periods against performance, price and market capitalization may miss on consumer satisfaction and mannerisms; the old may turn out to be Gold.
From a business persons’ point of view, the more Ethers you have in your digital wallet right now, the bigger is your future portfolio. In the event that Ethereum overtakes Bitcoin in the near future, you gain. Here is how; hold both currencies’ capitalization constant, having 2.5 Ethers may translate to 52.5 USD in the event the Ether overtakes BTC. This is a think-aloud assumption and not an investment advice.
With the foregoing, Ethereum future looks bright even if their projected market capitalization is not achieved in the current financial year. Ether is completely a new asset in the market and evaluating its value is not easy. However, if you use quantitative data, you might determine the price. Comparing the number of transactions for each platform may give indicative price.
The number of transactions mean a lot; it could mean there are more users in Bitcoin than Ethereum. It could be an indication that cost per transaction is lower on one platform that the other or users get better user experience on one platform than the other. From a logical point of view, Bitcoin has been in the market longer than Ethereum but the gap on market capitalization is shrinking in favor of Ethereum.
Ethereum currently has 1/3 of the number of Bitcoin transactions and this does not translate to 1/3 of Bitcoin transactions. The user plays a major role when responding to the provider route to market priorities. This is a fact because you cannot project the future of cryptocurrency on the number of users in the blockchain.
If the trading volume of any cryptocurrency has anything to do with its future, Ether is the currency to watch. Their volumes are on the rise meaning more are coming onboard; growth that is being cushioned by their network upgrade. This is an integral part of a currency performance. It shows there is high demand for the currency.
How Ethereum is Planning to Fight Inflation with dApps
The growth of any currency depends on forecasting the future. If you hold any cryptocurrency, inflation should be in your mind. High inflation rate means your portfolio value is eroded making you poor. If you have invested 500 dollars and you are faced with inflation, it means your 500 loses value every trading day.
However, Ethereum promises to stem inflation through their Proof of Stake (POS) protocol. The Ether creation process will halt once they reach the 100 million ether supply. Collection of money from investors by DAPPS will ensure the prices increase while keeping inflation at its lowest.
Although Ethereum might not achieve Bitcoin’s Gold status, it has the characteristic of meeting the threshold. Their Ether is scarce due to limited supply and this is what investors are looking for. This means holding your Ether assets for long guarantees you more profits.
No Scalability Issues for Ethereum
Ethereum offers more scalability solutions compared to those of the market leader, Bitcoin. This is likely to boost the Ether price to rival the likes of 200 billion capitalization of Visa. The only difference between visa and Ethereum is the ability for Visa to increase the number of transactions faster.
The consumer is conscious about downtime. The time it takes for transactions to complete is important. Ethereum use a ghost protocol for better speeds than their competitor. When blocks are confirmed fast, it means your transaction is fast and your customer or buyer is happy when the deal is closed.
If You Plan on Mining, Then Ethereum is The Best Choice
Investing in Bitcoin seems like a short time venture given that 2/3 of their Bitcoins have already been mined. What happens when the remaining coins are mined holding expansion factors constant? Ethereum foresaw this and started with a pre-sale and their Ether mining will take more than five years to mine half of the total.
Continuous mining means diminishing returns for Bitcoin. The Proof-of-Work protocol being used by Ethereum encourages miner productivity. In addition, decentralized mining makes Ether more popular. This could be a tool Ethereum is using to bridge the gap on Bitcoin shortcomings. The whole process boils down to better user experience and satisfaction.
Etheruem is keeping the cost of transactions at the lowest while Bitcoin is sitting on its laurels hoping their platform congestion eases off and transactions become affordable. They need to focus of improving their speed to bring down the cost of money transfer to the small business person. Their system should factor in the block size and transactions being performed at any given time.
Security of your assets is a major factor when defining the future of any currency. Security feature influences adorers; to convert them in to users, they need assurance that their funds are secure. Each has its security threats and the consumer needs protection from hackers and other cyber-crime threats.
As Ethereum and Bitcoin seek to attain capitalization of developed countries, much is yet to be seen on how each will entice users to invest more. These however are not the only players in the industry, there are smaller but aggressive currencies coming up. They have better products and appeal more to the modern business.