Ether on track to overtake Bitcoin? The emergence of BRC20 may bring a tug-of-war

　　In most fields, the "battle between the oldest and the youngest" is often fierce. Bitcoin and ethereum, which dominate the crypto space, have also started a competition for "community consensus share.

　　In most areas, the "battle between the oldest and the youngest" tends to be extremely fierce. Bitcoin and Ether, which dominate the crypto space, have also started a competition for "community consensus share".

　　In the past two years, with the conversion of Ether to PoS, pledge open withdrawals, Layer2 landing and a series of upgrades, coupled with the prosperity of the ecology, all aspects are becoming more and more competitive, attracting many members of the Bitcoin community (including BCH, BSV and other fork communities) to join, perhaps it is time to talk about the possibility of Ether's market value surpassing Bitcoin, as a former As a former "cottage industry", ethereum overtaking bitcoin is happening, and not just in the "dream".

　　Mainstream money has been watching bitcoin and ethereum, who will perform better in the next round?

　　Bitcoin and ethereum were not originally in a deadly dichotomy, including the community, but the crypto community is not that large, and the most important thing for bitcoin is to keep the "consensus share", while for ethereum For Bitcoin, the most important thing is to retain "consensus share", while for Ether, the community continues to "attract consensus", and the comparison between the two is always interesting:

　　Bitcoin aims to be a decentralized medium of exchange and store of value, while Ether was born with the mission to be a smart contract platform to run decentralized applications, with ETH used to pay for the "gas" of contract execution, and thus BTC and ETH have become digital gold and digital oil.

　　Bitcoin uses the UTXO model to record transactions, which is one of the major strengths of Bitcoin and one of the key technical solutions used to keep the record "database" lightweight over time, which is the key to Bitcoin nodes always being able to validate transactions quickly and efficiently and the system being stable over time.

　　Ether, on the other hand, uses the account model, perhaps for the flexibility of recording account status, but this has forced Ether to face the dilemma of "state explosion", which has not yet been solved.

　　In short, the account model will become a burden to the consensus nodes as time goes on, and the system will become more and more bloated, eventually limiting the development of Ether, which may be solved in the future upgrade.

　　After Ether switched to PoS, it parted ways with the PoW consensus mechanism. As for why it abandoned the PoW consensus mechanism, which made Bitcoin incredibly powerful, it's a long story, which will be discussed below.

　　Although the two routes are different, and each has its own advantages in its own field, there is no need to compare them too much, but there are some important angles that cross each other, and Ether has indeed started to surpass Bitcoin.

　　The ecological prosperity of platform-based ethereum needs no comparison, but thanks to this, ethereum's ecological infrastructure has surpassed that of bitcoin compared to bitcoin.

　　The diversification of Ether wallet clients, including Little Fox wallet and many hardware wallets, has become the entrance of meta-universe and Web3.0 directly facing users, and the user habit of Ether wallet clients has taken shape, which has become the basis for the prosperity of new public chains of EVM, and the addition of competitive new public chains has increased the prosperity of EVM-related developers and related cross-chain ecology, feeding The addition of competitive new public chains will increase the prosperity of EVM-related developers and related cross-chain ecology, feeding the Ethernet ecology.

　　In addition, those who are careful will find that some quotation software will show the number of platforms on which crypto assets are listed, and the number of CEX platforms listed by Ether has always exceeded that of Bitcoin. If we add DEX, the future of crypto asset exchange, Ether has indeed taken a relative lead.

　　According to money-movers, Ether is currently transferring and settling nearly $30 billion in assets on-chain media, while this figure for Bitcoin is $4+ billion, which is already an order of magnitude worse.

　　If cross-chain is the future, then cross-chain liquidity data is also important. CryptoFlows data charts can see that the total amount of money coming in and out of cross-chain from Ether is over $10 billion, and the amount of money coming in and out of cross-chain from Bitcoin is around $6 billion.

　　All in all, Ether is the "best" among all public chains in terms of on-chain fund transfer and settlement, and cross-chain fund inflow and outflow data.

　　Many believe that a large part of the reason for Bitcoin's high value is its supply rules, where the total amount is constant and halves every four years. Ether has entered deflationary normalization, which gives it the capital to compete head-on with Bitcoin, a "digital gold" based on scarcity.

　　There are many people who believe that Ether has now become an "ultra-solid currency" for the following reasons:

　　A few days ago, the 7-day annualized deflation rate of Ether is about 1%, which means 1.2 million ETH per year.

　　To sum up, the claim that Ether is a super robust currency is based on its decreasing supply and increasing demand, which makes it highly scarce and valuable, and also makes it deflationary and anti-inflationary.

　　The total number of Ether verifiers after the switch to PoS exceeds 560,000 and continues to grow, as the Ether community used to "boast" that

　　In summary, the ethereum community believes that ethereum has been upgraded to make the system more decentralized, with higher security, scalability and innovation.

　　As we've seen, Bitcoin is not as radical as Ether, but that doesn't mean the Bitcoin community is lying flat and doing nothing:

　　The recent banking crisis has made more people start to re-examine the safe-haven properties of bitcoin, and in the case of traditional financial systemic risk thunderstorms, bitcoin is starting to replace or even partially replace the function of gold, and may go even further in the future.

　　The current global market value of gold is more than $8 trillion, while the market value of bitcoin is currently only $500 billion, which means that regardless of the partial replacement, and counting the possibility of potentially surpassing gold in the future, it is still a "sea of possibilities".

　　Ether has its own ecology, and Bitcoin's ecological development has not stalled. Bitcoin-based upper layer smart contract application ecology, including Stacks, RIF, etc., BitcoinFi, BitcoinNFT also quietly thrives.

　　BRC20 has also attracted a lot of attention recently. Compared to ERC20 of the ethereum ecosystem, BRC20 is early enough and has enough gimmicks based on "bitcoin ecology" alone, although there is still a certain threshold, and the unique distribution method with stronger decentralization attributes also brings a different new narrative.

　　Of course, it is also important to note the risk of short-term heat loss. Inscribing the BRC20 Token directly on the Bitcoin mainnet is essentially old wine in a new bottle, and the scalability, functionality, performance, user habits, and infrastructure of BRC20 are far less than ERC20, which runs counter to the "expansion" of innovation that the crypto industry has been exploring. Without a sustainable direction, BRC20 will not be able to go long term.

　　In terms of payment, the lightning network has been steadily expanding. 1ML data shows that the capacity of the lightning network is over 5,000 BTC, with 16,367 nodes and 74,178 channels. At the same time, several head platforms have started to support lightning network's charging and withdrawing one after another.

　　It looks like an inspirational story that Ether surpasses Bitcoin, from a dream that is never possible to gradually step into reality. Bitcoin is as stable as a mountain, and Ether is actively innovating. Perhaps the battle between Bitcoin and Ether will continue for a long time, but they both have a bright future, no matter they succeed or fail, they only compete for the high and low.