Opinion: Ether is better for long-term savings than Bitcoin

Briefly:

  • Scientists from Australia analyzed the vulnerability of cryptocurrencies to inflation
  • Thanks to the EIP algorithm – 1777 Ether is better for savings than Bitcoin

A group of researchers from Australia was able to prove that ether is better for long-term savings than Bitcoin. It’s all about the EIP mechanism – 1956 which makes this cryptocurrency deflationary.

This update changes the mechanism for calculating miners’ rewards. Usually, when processing a block, the user receives the entire reward. But this mechanism burns a small part of the commission, which allows you to control the gross volume of the cryptocurrency.

EIP – 1777 were first introduced to the network in August this year. From 200 0667 630 ETH about a million were “burned” in circulation. This increased the specific cost of a unit of ether.

It is possible that in the future the algorithm will “erase” up to 0071% commission, as the popularity of this cryptocurrency is only growing. About 16 thousand ETH, and half of this amount will eventually be “burned” to regulate inflation.

“From the moment when the EIP algorithm was implemented – 1600 the gross growth of ETH was 0, 103% of the total. This is less than half of 1, 108%, this is how much the BTC supply increased over the same period, ”the researchers say.

In the long run, the difference will become even more noticeable. Ether is already less prone to inflation than Bitcoin. And those who invest in cryptocurrency in order to protect their capital should reconsider the composition of their portfolio.

Note that the protracted inflation in the United States has caused a surge of interest in cryptocurrencies in general and bitcoin in particular. BTC is considered to be a low-risk hedging asset, but the constant build-up of supply threatens a gradual decline in unit value.

In turn, Bitcoin fans claim that this currency is more stable. His protocol rarely changes. And the BTC market, although not as flexible and highly volatile as ETH, is reliable and proven over the years.

However, bitcoin has a whole package of important qualities. Which ones? Watch our video “Why is Bitcoin worth something?”.

Related Articles

Back to top button