Ethereum and Bitcoin will Inevitably Fight Over Market Exposure [Evidence from last bull cycle]
Both have history. Both are racing into everyday peoples wallets. But which one will sustain and grow its monopoly? After this last bull run it’s obvious that people have been splitting their capital between the two assets and it unfortunately hindered the price action as Bitcorn fell on it’s heavy burdensome sword.
If it’s not clear, I’m already biased towards Ethereum being the winner in the race to achieve a 100% price increase by end of year to reset to previous ATH. The reasons for why I see this are One: Based on Price recovery, Two: Based on Application Users and Functionality, and Three: “Exponential Sentiment” or “Mass Adoption” potentials.
I won’t waste your time here and let you get back to your tea and crumpets with Mr. F***** and Mr. Re**** shortly. Lets get into the first Reason. Which asset didn’t need a slop fest of a party in Miami to gain Sentiment? Which asset recovered back to it’s May 1st Price in 20 days while also reaching a new ATH price of $4300 and which has yet to do this and is now set back to its price from February?
I woke up one day and realized that these two assets aren’t playing ball together anymore. Competition is needed to reinvigorate this market and allow for more innovation and application development. Bitcoin is partially propped up by the greed of those who own it. We know this because of the new institutional interest in owning Bitcoin, beyond banks and financial institutions.
These are the sharks already up major cash who want more, dreaming of a world where BTC will forever be a weight that the rest of the Crypto world has to carry. A reminder of the past that without black markets, crypto serves little purpose. There are better privacy solutions like Monero and Tornado Cash of course but nothing seems to attract the attention of the public as much as Bitcoin and its disregard any kind of normal price action.
But lets talk a theoretical for a second, with polygon attracting the army of goblin town onto the premises could it lead more to trade into ETH? Polygon has grown at a surprising rate and is surpassing BNB in number of transactions. ETH has developed a very primitive derivatives trading on its network, completely decentralized and based on Synthetics (Look at SNX, RUNE, LUNA, and MIR). If these protocols develop side chains for Polygon than all that Pleb money can go further towards the ponzinomics of ETH holders. This isn’t to say that ETH is vaporous money. I believe it’s well is dug deeper than Bitcoin’s and doesn’t rely on being drug payments long term pal so those are bonuses when discussing mass adoption. Long term holders of ETH are transitioning to validators making the mining less intensive and more similar to the Polygon side chain. Mining will still play a part but the network, working alongside sidechains. Some other joint efforts for the future are Arbitrium, Optimism, zk roll ups and other new apps being developed on the Ethereum network.
We don’t know how life will look in the future but part of winning bets is predicting the outcome of how things may be sometime in the near future. If you look for the very near than you should be reacting to those shifts accordingly. This is essentially filled through the act of trading. There is tons of free real estate in emerging digital currencies. Polygon is one chain built on another which is something we may see more in the future. Some speculate that Ethereum fees decreasing will make side chains useless. This is a perspective held by many retail investors looking at the technology not so much for its use case but more for its inherent value. There is no denying though that having different chains for different networks to offload the workload definitely helps to decongest transaction times.
