Discussion continues that this altcoin could be replaced by Bitcoin in the next few years or in the next bull cycle.
Bitcoin can be replaced by this altcoin
Based on year-to-date performance and pullbacks from all-time highs (ATHs), Bitcoin (BTC) and Ethereum (ETH) performed very similarly. BTC is up 25.5% since the start of the year, while ETH is up about 27%. From its ATH, Bitcoin fell 69.9%, while Ether fell 68.9%.
Despite this fairly comparable performance, the debate continues that Ethereum could replace Bitcoin as the largest cryptocurrency by market cap in the next few years or the next bull cycle (“flip”).
A supporter of this theory is Haseeb Qureshi of Dragonfly Capital. In a recent interview, the managing partner of the investment firm said that if any cryptocurrency reaches $1 trillion, it will be Ethereum. Institutional investors who need to align the acquisition with their Environmental, Social and Governance (ESG) agendas:
“You need institutional buyers to be willing to buy this thing for size, and if you’re an institutional buyer, Ethereum is really the only game in town.”
It’s getting harder to legitimize Bitcoin
The expert stated that it is becoming increasingly difficult for institutions to legitimize Bitcoin as an investment. Qureshi said, ‘I see this a lot because we work a lot with big institutions. It’s something that’s clearly causing more and more anxiety for them. They want to invest in crypto, but it must be in line with their ESG mandate.’ said.
Another argument put forward by proponents of the theory is that Ethereum is predominantly OFAC (US Office of Foreign Asset Control) compliant, which could make it easier for institutions to enter the market.
2. Ethereum is superior to #Bitcoin in the eyes of institutions, as it's more ESG friendly.
"If you want a trillion dollar coin, you're not going to get there off the back of retail."
"Ethereum is really the only game in town if you want institutional buyers." pic.twitter.com/f2H2gg224T
— Miles Deutscher (@milesdeutscher) January 18, 2023
On the other hand, Bitcoin supporters will probably argue that the mining industry is one of the most sustainable industries. In its latest report, the Bitcoin Mining Council found that the energy mix in Bitcoin mining is now 58.9% sustainable.
Also, estimates suggest that Bitcoin mining could reduce global emissions by up to 8% by 2030, by converting the world’s waste and hazardous methane emissions into 80 times less harmful emissions.
Ethereum/Bitcoin technical analysis
Looking at the 4-hour chart of Ethereum/Bitcoin shows that ETH is currently in a downtrend compared to BTC. As announced via Twitter by the founder of LedgArt, ETH saw a spike above and outside the streamer for the ETH/BTC ratio, then bounced back to support as Bitcoin climbed from $18,000 to $21,000 in a matter of days.
According to the analyst, such fake suppositories are blowing up negatively. “As BTC continues to strengthen and draw liquidity from the bottoms as in the 2019 bear market rally, I expect this level to drop further in the next few weeks,” he shared the chart below.
cryptocoin.com As we mentioned, BTC is currently changing hands at $ 20,966. ETH is sitting at $1,552, just above the $1,500 support level.
