Ethereum may eventually take away half of Bitcoin’s market share in the next five years, according to a tech analyst at an art agency.
Ethereum’s Price Has Bottomed
Compared to 2017, 2018 hasn’t been a fruitful year for Ether’s price. At the time of writing, the second most valuable crypto asset is trading at $209, according to CoinMarketCap. This is a rise of over 4.5 percent in 24 hours and more than 20.5 percent in seven days.
Mid-January saw Ether’s price rise to $1,400. This despite the fact that a report last October claimed that it would take several years for it to hit $1,000.
However, in August, it was reported that the price of Ether had fallen below $300 for the first time in nine months. On the 12th of September, it dropped even further to a low of around $170. Yet, despite this, one tech analyst believes Ethereum has found a bottom and will experience a swift reversal.
In an email to MarketWatch, Ian McLeod, analyst for Thomas Crown Art, an art agency that uses the Ethereum blockchain, explained:
Not only do we think it will rebound considerably before the end of 2018, I believe that over the longer time it will significantly dent Bitcoin’s dominance. In fact, I think we can expect Bitcoin to lose 50 percent of its cryptocurrency market share to Ethereum, its nearest rival, within five years.
At present, Bitcoin’s market cap worth amounts to $109.5 billion. Ethereum is valued at $21.3 billion. For many, this may be a bold claim for McLeod to make. Yet, in his opinion, the Ethereum blockchain provides more than Bitcoin. Namely, solving issues revolving around authenticity and provenance.
Of course, while Bitcoin may be suffering from scalability problems, that’s not to say that Ethereum is immune to them. At the moment, it uses a proof-of-work protocol; however, the network is considering proof-of-stake to reduce congestion time on the blockchain.
The arrival of CryptoKitties last year brought attention to the fact that Ethereum can suffer from congestion issues similar to the Bitcoin blockchain.
Still a Long Way to Go
The Ethereum blockchain is being used in an increasing number of projects.
Yet while the technology is being employed in different areas, it still has some distance to travel. Unlike Ether, Bitcoin is being used as a payment option around the world. Not only that, but it’s largely considered as a store of value.
Do you think Ether will claim half of Bitcoin’s value? Let us know in the comments below.
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