Will Ethereum ever overtake Bitcoin in value?

Initially, when people thought about cryptocurrencies, the first token that came to mind was Bitcoin. It is considered a leader in the cryptocurrency field, so many corporations now accept it as a store of value. Another formidable contender in the crypto market is Ethereum. Ethereum has also proved to be a first-mover with growing price value and reasonable volatility. So far, the big question has been whether or not Ethereum will ever overtake Bitcoin in terms of value.

Like most other asset classes, there are significant advantages of diversification through having more than one digital currency. Shrewd investors should consider having a small cluster of different coins instead of just Bitcoins. However, there is also a need to consider the crypto assets that will stabilize volatility and complement each other in the long term. A combination of Bitcoins and Ethers is a favorite choice for many investors as their differences and similarities, price trends, and technologies complement each other well.

Ethereum has network characteristics that make it attractive in the long term

Bitcoin and Ethereum networks may look similar, but they are different if their overall aims are considered. Bitcoin trading started as a reliable alternative to having fiat currencies and also to keep transactions anonymous. It was a way to store value and have a medium of exchange away from the grip of institutional control. Ethereum, on the other hand, is intended to have its currency and provide apps and immutable digital contracts on its platform. With that, ETH is also a digital currency, but Ether's primary purpose was first to facilitate and then monetize smart contracts and provide a decentralized application platform (dapp).

Ethereum trading bears a greater advantage from a broader perspective because it is a platform that still carries more room for innovative improvements within it. Being a platform that can carry out plenty of economic tasks places it a step ahead of Bitcoin, which so far remains a peer-to-peer value exchange system.

Mining characteristics that affect the value of Ethereum and Bitcoin

From its inception, there was a capped number of Bitcoins that can ever be mined. The founder’s code placed a limit of 21 million Bitcoins. Currently, the number of Bitcoins that have already been mined is slightly under 19 million Bitcoins. Furthermore, the reward for mining Bitcoins will also keep on reducing by half after every four years. The process is called "halving," which means that it will avoid an unfair rush to mine the remaining quota, and in turn, there won't be some price distortion. As the figure of existing Bitcoins rises, the coin will naturally encounter more scarcity, and that will create more value.

On the other hand, Ethereum does not have a limit on the number that can be mined, neither are there any restrictions as a percentage of the first number issued. Miners, however, find Ethereum more profitable to mine because Bitcoins demand more computing power, electricity, and related costs to mine them on the blockchain. Ethereum is popular with miners because it is cheaper and more rewarding to mine.