Striking Claim from the Analyst: “Ethereum Will Overtake Bitcoin Before This Date!”

Cryptocurrency researcher Dan Smith said in his statement that the “Flippening”, which means that Ethereum’s market cap will surpass Bitcoin’s, and that ETH will become the world’s largest cryptocurrency, will happen sooner than expected.

The analyst continued his statements as follows:

“Bitcoin aims to become the global reserve currency.

Ethereum aims to be the infrastructure of a global digital economy.

The technology adoption pattern of both visions is enormous, so the best comparison is the likelihood that both networks will gain their respective market share.

Bitcoin has never been able to generate any meaningful transaction revenue compared to the cost of security and has heavily subsidized security with block rewards. The current model is unsustainable, making it less likely to become a global reserve currency.

Ethereum has become the core layer of the largest decentralized application ecosystem and has the best economy in crypto. “

“Ethereum Bitcoin Will Pass Before Next Cycle Ends”

According to the analyst, Ethereum’s market cap will surpass Bitcoin’s before the next cycle ends:

“I expect Ethereum to surpass Bitcoin before the end of the next cycle.

Ethereum is about $150 billion behind in market cap, but it keeps Bitcoin exactly where it wants to be.

The superiority of his performance will derive from the strength of his post-Merge foundations.”

In addition, the analyst added that the block rewards of Bitcoin make up a large part of the rewards given to the miners and therefore are at a disadvantage:

“Just looking at the USD value of miner income, Bitcoin miners seem to be doing pretty well!

But analyzing the revenue composition reveals the underlying problem… Bitcoin heavily subsidizes its security with block rewards.

While 95% of Bitcoin miner rewards come from inflation-based block rewards, only 5% is actual revenue from transaction fees.

PoW is energy intensive by design. It’s great for security, but creates forced vendors as miners need to offset their production costs (electricity).

Even at low inflation, 95% of miners’ sales are made up of newly minted BTCs, because fee generation is negligible.

Bitcoin does not support smart contracts, so the only form of value that can exist on the network is BTC. Users have to pay a fee for BTC transfer in every transaction.

So fee generation depends on the speed of BTC, but users describe themselves as HODLers…”

On the Ethereum side, the analyst states that users directly pay fees for transactions:

“In contrast, ETH is used as money to transact within a digital economy.

Users pay fees to transfer ETH, stablecoins and other tokens or interact with DeFi applications.

Ethereum expands the transactions possible to more than just sending, receiving and holding BTC.

The actual yield percentage of Ethereum increased with the total revenue during the bull market, emphasizing the reflectivity of the network.

However, reflectivity suffers as on-chain activity declines, as seen in the real revenue percentage decline in 2022.”

In addition, the analyst also stated that the annual inflation of ETH is 0%:

“The move to PoS has also reduced the $1.7 billion ETH issuance in just 117 days.

This is of great importance for liquidity flows as ETH needs much less buying pressure to maintain the same price.

But what about the effect on inflation? ETH’s 30-day annual inflation rate is 0.00%.”

*Not investment advice.

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