Cryptocurrency lovers often ask this question and some are even sure that Ethereum will most certainly reach that price where Bitcoin is. However, there are more things that you need to know before making such a wild guess.
Bitcoin and Ethereum are two different creations. They do not focus on the same market applications or services. Both are way apart in terms of the purpose they were created for. Bitcoin primary goal is to serve as a decentralized currency while Ethereum is meant to provide a platform for dapps and smart contracts.
Bitcoin was primarily build to handle cash transactions and may someday even be recognized as real money, while Ethereum is a complex blockchain based contract mechanism.
Bitcoin has one advantage that no other currency can have it or will have it and that is, the first ever cryptocurrency. Ethereum will have to share it’s market with other platforms such as NEO and more specialized platforms like Stratis, QTUM, Komodo etc.
Another and very important point is that Ethereum will somehow never be stable. Companies will issue ICOs and then dump in the market (like they did before). So, this somehow give you a signal that people are not interested in Ethereum CURRENCY itself but want to build their success upon Ethereum and raise funds. As a result, those who are genuinely interested in the currency itself get’s hurt.
For example, ETH for the first time touched the $400 landmark on Jun 12 and then ICOs started dumping. It’s been 4 months it hasn’t even came close to that target. I know that Bitcoin has suffered even longer but those were the infancy days. People are now aware of Cryptos and what they can actually do.
And that all bring us to a point, will a Restaurant, Coffee shop etc. ever accept Ethereum as regular mode of Payment, knowing that someone holds a large chunk of coins and will dump it sooner or later? I don’t think so.
Ethereum price will always be somehow affected by those ICOs and their performance. In contrast, Bitcoin price is only affected by Bitcoin itself (excluding external factors such as bans, regulations etc).
As per my understanding of the market, both have their place in the cryptocurrency world and are in no way in competition with each other.
- Ether supply sits at 95,036,531 ETH.
- Bitcoin’s price is $4781.96
If the price of Ether were $4781.96, that would put the Ethereum market cap at $454,460,889,781. So, given the current price of Ethereum it will have to at least gain;
$4781.96 - $298.46 = $4483.5 per ETH
In other words, Ethereum will have to gain at least 1502% of where it is right now to reach where Bitcoin is now (assuming at current coin supplies).
So, going by my extinct Ethereum will probably never reach to the price where Bitcoin is.
So, perhaps a better question would be;
Will Ethereum ever reach the same market capital where Bitcoin is?
Sure it will, in fact, it will surpass it.
There were times when Ethereum was just approx $8.3Bn away from Bitcoin.
Hey Ghayas,
You're absolutely correct that Ethereum and Bitcoin are not competitors but they currently receive the most attention out of all the cryptocoins out there. If Ethereum ever reaches the price of Bitcoin I will be kicking myself because I sold my bag entirely too soon. Hell, I'm already kicking myself for selling at $3 for 100% profit. I've learned the hard way to just hodl and trust my initial instincts.
Keep up the great work and look forward to the next article you create.
Sincerely,
Kevin Messerly
lol. Apparently, I am still holding it. When ETH touched $400 I was in a slumber and then later on just thought that it was going to the MOON. Then the ICO kicked in with full gravity.
And it's been 4 months, I am stuck there. Probably going to cash in before Bitcoin fork.
Thanks for the appreciation, means a lot. :)
If you're looking for something that has a proven track record and blows the socks off just about every coin on the market then you need to look into BitShares. This is one of the most undervalued cryptocoins available today.
Let me know if you have any questions about it. I'm sure you will.
I am usually very reluctant to invest in a coin that crosses the 1Bn supply, but this one is on my Radar. In fact, I just yesterday set up a/c on Open Ledger. :)
Studying DEX, it's the next big thing.
Could Ether?? Is there a limited supply? If there is then prob half at most of BTC's market cap.
92M ETH = BTC never
Market Cap = Probability
Yeah, uncertainty around ETH supply could be another factor for Eth to struggle against Bitcoin. Tx
ETH is unlimited and never will have a limited supply.
By design Ether is not meant to be a "store of value".
BTC wasn't designed to be it either but it has defacto became one. ETH is a fuel and it will be burned and used. Another question is how big markets of digital gold and fuel will be.
The essence of this article, you said it. Tx :)
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