While it was discussed that the leading cryptocurrency is the most important and superior store of value in the world, the report of Australian university researchers revealed that Ethereum is a superior store of value compared to Bitcoin.
Questioning Bitcoin as the ultimate store of value among all cryptocurrencies, Australian researchers stated that Ethereum is on its way to “becoming the world’s first deflationary currency”.
Researchers also emphasized that with the EIP-1559 update carried out in August, some of the transaction fees paid in the ETH network began to be burned, and after the update, more than 1 million ETH was burned from the circulating supply of 118,583,580 ETH.
Researchers pointed out that the EIP-1559 update, which took place in this context, is a tool to potentially transform ETH into a better store of value than the world’s largest cryptocurrency Bitcoin.
Researchers are already claiming that Ethereum is less inflationary than Bitcoin.
“When we evaluate the Ethereum creation rate year-on-year since the EIP-1559 update, the expected increase in total Ethereum supply is only 0.98%, which is less than half of the almost certain 1.99% increase in Bitcoin supply over the same period.”
Emphasizing that ETH can be a better long-term store of value than Bitcoin in the long run, Australian researchers state that Ethereum should also be better evaluated by investors.
While interest in Bitcoin as a means of hedging inflation has increased due to the increasing inflation recently, Bitcoin supporters evaluate BTC as “hard and healthy money”, while Ethereum supporters compare ETH to “ultra-solid money”.
However, supporters of Bitcoin, such as MicroStrategy CEO Michael Saylor, argue that Bitcoin is a superior store of value because it is much more secure in terms of hash rate, limited supply and the protocol cannot be changed.
*Not investment advice.