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Is it possible for Ethereum to become a deflationary and perhaps more valuable cryptocurrency than Bitcoin? This is one of the most popular questions in the crypto community right now, thanks to the much-anticipated ETH update. Many supporters have expressed their views on this new protocol transition: some are enthusiastic, while others are cautiously sceptical.
It is fair to say that Ethereum saw a roller coaster ride in the months leading up to its tech changes, including delays, altered roadmaps, and other issues.
Well, the pessimism seems to have faded as various validators continue to stake ETH on the network. At the time of writing, 4,812,859 ETH were staked on the network.
In a recent interview hosted by ‘Thinking Crypto’, the interviewee, Michael Arrington, the founder of TechCrunch, Arrington expressed his optimism towards Ether as compared to Bitcoin. He stated: “I really want to publish a lot about Ether thesis in my newsletter for my investors.”
Furthermore, he added:
” A lot of things are happening with ETH this year, way more deflationary of an asset than Bitcoin. So that’s why we’re really excited about ether.”
Few other enthusiasts saw the same potential in this space.
Panthera’s CEO recently published a blog to highlight the same.
We think this is the beginning of the market re-rating Ethereum for EIP 1559 & Proof of Stake.
A deflationary asset – where each block, negative ethereum are issued.
This means ETH will be a more deflationary asset than bitcoin.
— Dan Morehead (@dan_pantera) May 14, 2021
Having said that, the exec was quick to acknowledge another important aspect as well:
“No doubt I’ve been excited about ETH, but again it changes daily depending on the price. Only if Ether could get its monetary policy figured out, that would be a very exciting asset for the long term.”
The comment regarding its monetary policy, on the other hand, rings a familiar bell. With the upcoming EIP-1559 update on the horizon, Ethereum may become a scarcer commodity than Bitcoin.
At press time, Ethereum was trading at $2,814 per coin, up around 8.50 percent in the previous 24 hours.