Ethereum, Bitcoin flipping: what gives?

Ethereum, Bitcoin flipping: what gives?

There is no such thing as a new word to get people’s juices flowing. “Volatility” is the idea that the underdog beats the winner. In this case, the idea is that Ethereum will outperform Bitcoin in market capitalization.

Here is the chart of Ethereum vs Bitcoin:

The blue line is Ethereum and as you can see Ethereum has a bounce but does it have a “win”.

Here is another scheme:

What you see is that Ethereum has a beta version; It can rise more and fall more as well. It is a spring chicken compared to the old fixed chicken in bitcoin.

You can also see Ethereum following Bitcoin but not leading it.

So the idea that Ethereum will outperform Bitcoin is due to the shift from Proof of Work to Proof of Stake. For me, this is a political ruling. Is centralization by ‘dealers’ versus decentralization across miners the winning formula? Whether mining with large pools versus enthusiasts with static nodes is a more or less central debate, but I’m on the side where stake is central versus mining. Centralization may be the winning method after all and decentralization the loser versus government. It’s just an opinion now.

However, Bitcoin remains the brand and remains a stable platform. He will lead Ethereum. Until this leadership position changes, there will be no volatility.

Ethereum will continue to be a token with beta (volatility) and if there is another leg down the crypto-winter you will lose more than Bitcoin. When the bounce comes, bitcoin will outperform bitcoin, but it will follow and likely still lag bitcoin’s market cap.

Meanwhile, the “merger” process did not solve the problem of expensive transactions for Ethereum and sometime in the near future, protesters like Polygon and Avalanche will start eating Ethereum lunch. This is not a good basis for crypto dominance.

You can love Ethereum, but that doesn’t mean it will be number one. I will try to buy it at the bottom like I did in the past, but I won’t care which cryptocurrency is number one because it doesn’t affect returns.

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