Will Ethereum dethrone Bitcoin?

 
Ethereum has undergone monumental changes in the past six months. Amidst the “Crypto Winter” that plagued digital assets last year, the long-awaited “merge” took place, changing the coin’s model from proof-of-work to proof-of-stake.

The upgrade claims to reduce Ethereum’s carbon footprint by up to 99.95%, arguably making it more attractive from an ESG perspective than the energy-intensive Bitcoin.

It has been suggested that this upgrade could propel Ethereum ahead of Bitcoin—the two coins account for around 60% of the global crypto market, but Bitcoin has historically been valued at a higher price.

So, could this happen? Ethereum certainly has the potential—beyond the ESG credentials, it also has broader use cases. Bitcoin is ultimately a store of value, whereas Ethereum functions like a programmable network or platform, making it integral to NFTs and decentralised finance.
 

 
While some would argue that Ethereum’s broader use cases could give it the edge over Bitcoin, others have cited the “gold and silver” argument. That is to say, that Bitcoin is akin to gold with its limited supply and retention of value, whereas Ethereum is likened to silver for its lower price and wide variety of applications.

Perhaps comparing the two coins like-for-like is reductive, as both play very different roles in the crypto ecosystem and may continue to diverge as they evolve further. If the Crypto Winter has truly thawed, the stage is set for an exciting era for digital assets.
 
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