{"id":39139,"date":"2021-03-18T11:52:40","date_gmt":"2021-03-18T09:52:40","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=39139"},"modified":"2025-08-30T08:07:13","modified_gmt":"2025-08-30T05:07:13","slug":"opinion-a-deflationary-ethereum-2-0-could-displace-bitcoin","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/opinion-a-deflationary-ethereum-2-0-could-displace-bitcoin\/","title":{"rendered":"Opinion: A deflationary Ethereum 2.0 could displace Bitcoin"},"content":{"rendered":"<p><span style=\\\"font-weight: 400;\\\">After the transition to the second version of the Ethereum protocol, it could displace Bitcoin from the top of the asset-capitalization ranking. This view was presented by Messari analyst Ryan Watkins in the FinTech Today podcast.<\/span><\/p>\n<p><!--more--><\/p>\n<blockquote>\n<p><i><span style=\\\"font-weight: 400;\\\">\u201cBitcoin looks more attractive as a store of value \u2014 its monetary policy is predictable, and the network is secure. The second-largest cryptocurrency could challenge this after the transition to<\/span><\/i> <a href=\"https:\/\/u1f987.com\/en\/news\/what-is-the-proof-of-work-pow-algorithm\"><i><span style=\\\"font-weight: 400;\\\">Proof-of-Stake<\/span><\/i><\/a><i><span style=\\\"font-weight: 400;\\\">\u201d<\/span><\/i><span style=\\\"font-weight: 400;\\\">, the researcher said.<\/span><\/p>\n<\/blockquote>\n<p><iframe loading=\\\"lazy\\\" src=\\\"https:\/\/www.youtube.com\/embed\/M5tZ9DyTtnw\\\" width=\\\"1912\\\" height=\\\"772\\\" frameborder=\\\"0\\\" allowfullscreen=\\\"allowfullscreen\\\"><\/iframe><\/p>\n<p><span style=\\\"font-weight: 400;\\\">In the podcast, Watkins drew attention to the forthcoming change in the economy amid the transition to ETH2 with the introduction of the <a href=\"https:\/\/u1f987.com\/en\/news\/ethereum-eip-1559-included-in-july-london-hard-fork-despite-miners-opposition\">burning<\/a> mechanism for a portion of transaction fees. He believes this could lead to a reduction in the market supply of coins.<\/span><\/p>\n<blockquote>\n<p><i><span style=\\\"font-weight: 400;\\\">\u201cIf the Ethereum network is more secure and the asset has a stronger monetary policy, what could Bitcoin offer?\u201d<\/span><\/i><span style=\\\"font-weight: 400;\\\">, the analyst asked.<\/span><\/p>\n<\/blockquote>\n<p><span style=\\\"font-weight: 400;\\\">Watkins stressed that the blockchain of the second-largest cryptocurrency is built on a \u201cmassive and diverse\u201d economy. The rapidly developing sector of decentralized applications will attract new users faster than Bitcoin, he added.<\/span><\/p>\n<blockquote>\n<p><i><span style=\\\"font-weight: 400;\\\">\u201cAt some point, the economy of the second cryptocurrency will absorb so much human and financial capital that it will be comparable to the GDP of certain countries. People will be able to earn a living in this ecosystem,\u201d<\/span><\/i><span style=\\\"font-weight: 400;\\\"> the expert suggested.<\/span><\/p>\n<\/blockquote>\n<p><span style=\\\"font-weight: 400;\\\">In December, Watkins forecast <a href=\"https:\/\/u1f987.com\/en\/news\/messari-institutional-investors-to-flock-to-ethereum-in-2021\">institutional investment into Ethereum<\/a> thanks to the launch of futures for this asset on the Chicago Mercantile Exchange.<\/span><\/p>\n<p><span style=\\\"font-weight: 400;\\\">Earlier, Pantera Capital\u2019s head suggested that <a href=\"https:\/\/u1f987.com\/en\/news\/pantera-capital-chief-ethereum-and-xrp-to-overtake-bitcoin\">Ethereum could outrun Bitcoin<\/a> in growth, explaining this by the launch of Phase 0 of the second version of the protocol.<\/span><\/p>\n<p><span style=\\\"font-weight: 400;\\\">As noted, Messari analysts expressed confidence that the Ethereum network <a href=\"https:\/\/u1f987.com\/en\/news\/messari-rollup-technology-will-keep-ethereum-out-of-reach-for-rivals\">will remain out of reach<\/a> for rivals thanks to the deployment of a Layer-2 solution based on Rollups.<\/span><\/p>\n<p>Subscribe to ForkLog news on <a href=\\\"https:\/\/vk.com\/forklogcom\\\" target=\\\"_blank\\\" rel=\\\"nofollow noopener\\\">VK<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>After the transition to the second version of the Ethereum protocol, it could displace Bitcoin from the top of the asset-capitalization ranking. This view was presented by Messari analyst Ryan Watkins in the FinTech Today podcast.<\/p>\n","protected":false},"author":1,"featured_media":39140,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[18,46,1468,1138],"class_list":["post-39139","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitcoin","tag-ethereum","tag-messari","tag-opinions"],"aioseo_notices":[],"amp_enabled":true,"views":"19","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/39139","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=39139"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/39139\/revisions"}],"predecessor-version":[{"id":39141,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/39139\/revisions\/39141"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/39140"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=39139"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=39139"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=39139"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}