Tempers flared after the BlackRock chief talked about Bitcoin actually being the digitization of gold. But if bitcoin is digital gold, which cryptocurrency will take over silver’s digital role?
As a matter of fact, the idea of bitcoin as digital gold is not new at all – nor is the idea that some people are pushing ethereum into the public consciousness as digital silver. In fact, ETH has performed well in the last seven years, but Litecoin fans also revolted earlier, who believe that LTC can be bitcoin’s biggest rival. However, Ethereum has outperformed Litecoin in several ways.
Litecoin, like bitcoin, undergoes a halving every four years to reduce the block reward and also has a maximum supply (84 million). Ethereum, on the other hand, does not have a maximum supply and ETH believers cannot hold a halving party either. Its unlimited supply rightly raised inflation concerns, which were finally calmed down by the introduction of Ethereum burning (which, at the same time, keeps the amount of new coins decreasing). According to Ultrasound Money, for example, there was a 0.33% drop in ETH’s annual supply, which could further strengthen ethereum’s position as digital silver.
Bitcoin or Ethereum is it really necessary to choose?
Many people compare Bitcoin and Ethereum and then try to choose between the two cryptocurrencies, but it is worth remembering that both digital assets have unique characteristics and serve different purposes in the market. Bitcoin, for example, entered the public consciousness as a pioneer of decentralized digital currencies, while Ethereum is more specialized in promoting the concept of decentralized finance (DeFi). And although Bitcoin has similar capabilities, Ethereum is undoubtedly at the forefront of DeFi innovation.
Overall, it can be said that the naming of bitcoin as digital gold and ethereum as digital silver best reflects the role of the two cryptocurrencies in the market. However, while Bitcoin holds the torch as a pioneering cryptocurrency, Ethereum is revolutionizing the concept of decentralized finance. However, as the industry is constantly changing, it is in the cards for these roles to shift and the market dynamics to change completely.