Ethereum has won the most frequently used cryptocurrency in the market, not just the hardest money. Bitcoin is a crypto asset that has always ranked first. Since the first crypto currency was born 13 years ago, Bitcoin has always dominated the crypto asset category. The following content will answer for you.

1、 Bitcoin has always dominated the encryption asset category

One of the most important issues that must be raised by new capital entering the crypto ecosystem is where to bet the funds. As the two largest cryptocurrencies with a market value of more than 50%, the relative issue between Bitcoin and Ethereum may be the most important issue raised by institutions and high net worth individuals who want to exceed asset categories.

OG (senior level) cryptocurrency is currently worth $420 billion, accounting for about 38% of the market value of all cryptocurrencies. Bitcoin has the highest brand awareness, and its search volume is about 3 times that of Ethereum, which ranks second. It also received the most institutional investment. Bitcoin is the only cryptocurrency invested by MicroStrategy, a listed company, and El Salvador, a country.

Bitcoin grew out of nothing in a little over 10 years and became an asset of more than 1 trillion dollars, which is perhaps the most incredible technology story ever. However, despite its high status today, Bitcoin is likely to lose its dominant position over time. Bitcoin may even become irrelevant in the near future. It is not enough to become the most decentralized and secure currency just because it is the hardest currency.

These are the ideal attributes of Internet native currency, but they are unlikely to be defined as successful Internet currency, and ultimately successful Internet native currency will be the currency most used. From this most important indicator, Ethereum, as the largest and most lasting cryptocurrency in the future, is the best bet.

2、 The cryptocurrency used by the most people will be successful

Fiat currency is a monetary tool that cryptocurrency attempts to subvert, especially the king of fiat currency, the dollar (USD), which is the best example of how it was adopted, but is not the factor that other possible definitions make cryptocurrency successful. In terms of assets alone, the US dollar has serious defects. A core attribute of the dollar is that it will depreciate forever. In the past century, the dollar has depreciated by more than 96%. Economist Amos estimates that the annual currency depreciation may be as high as 8%.

In addition, the dollar was used as an instrument of aggression by its creator, the United States Government. The status of the US dollar as the global reserve currency enables the United States to finance continuous wars and force other countries to yield to the US policy under the threat of sanctions, even aggression and violence.

The defining attribute of the dollar is the financing medium of devaluation and hostile hegemony, which is not ideal for its users - American citizens or American trading partners, but these are not the focus.

Although it has accumulated a trade deficit of more than 10 trillion dollars and recently tried to erase a country from the global financial system, 59% of global foreign exchange transactions are conducted in dollars. The second and third most common currencies are the euro, accounting for 21%, a basket of "other" currencies accounting for 10%, and the dollar dominates.

Why is that? Because the dollar is the most common currency. The United States of America has the largest economy and military. After decades of trade and military strength growth, the dollar has become the most used currency in the world. As the largest consumer market and military power, the terms of trade dominated by the United States far exceeded its share of 24% of global GDP. Although the dollar is depreciating every year, and the United States has a history of foreign aggression. In other words, what determines the success of the dollar is not its attributes, but its acceptability.

3、 Bitcoin is unlikely to become the most popular cryptocurrency

Compared with Bitcoin, Ethereum has significant advantages in terms of potential wide adoption. This advantage spans two universal and interrelated areas - technology and culture. The technology and culture of Ethereum promote innovation and encourage adoption, but Bitcoin does not.

The key feature of Bitcoin is its immutability. Among all cryptocurrencies, Bitcoin is the least affected by changes. The ultimate limit is always only 21 million, "the hardest money in the world". Since Bitcoin is the least affected by change, it is touted as the ultimate value store (SoV).

It is commendable that SoV MEME (Ultimate Value Storage Meme) opened the first use case of cryptocurrency worth more than 1 trillion dollars. However, the core SoV use case of Bitcoin brings several problems to Cryptocurrency # 1 that have not been paid attention to. What are you going to do with value storage? Hold it, accumulate it, and hoard it for consumption at an uncertain point in the future. In other words, it does not play a very important role.

This value proposition sounds much like other existing stores of value, namely gold. Although gold is still the largest asset in terms of market value, about $11 trillion, the share of this yellow metal in global assets is decreasing. Gold has no utility and no income (i.e. cash flow). On the other hand, stocks, bonds, real estate and other competitive value storage methods pay rewards to those who hold them through income. In addition, stocks and real estate usually appreciate at a faster rate than gold, and provide increasing returns on the basis of investors' costs through growing cash flows.

More capital appreciation plus growing cash flow? What's the point of holding gold for savers? This is a good question, and with better understanding of Ethereum and other cryptographic assets that generate revenue, this question may become more relevant to Bitcoin.

Although Bitcoin improves some of the weaknesses of gold, such as transportability and divisibility, the biggest value proposition of a static technology is to actually do nothing. In market competition, Bitcoin may be replaced by outstanding competitors, just like gold is losing to assets that generate revenue. Similarly, the Bitcoin community has not paid enough attention to this point. As a "sit on the fence" asset, Bitcoin advocates transforming its increasing influence into future value storage.

The halving reward of Bitcoin determines that the reward of Bitcoin is declining rapidly and needs to be replaced by strong expense generation in the near future. Just as gold is surpassed by fiat coins and value storage assets that generate income, Bitcoin is likely to be surpassed by technologies with stronger value proposition such as Ethereum.

summary

To sum up, the Ethereum community has the ability to promote innovation and plan a remarkable path to build an increasingly powerful public blockchain in the coming decades, which shows that Ethereum is more likely to become the most widely used and largest cryptocurrency in the medium and long term. In addition, Ethereum's culture of adventure and innovation shows that the risk of Ethereum being surpassed by alternative technologies in the future is low. Therefore, Ethereum is the best choice.