If you are aware of the present crypto world, you must have come across many different cryptocurrencies. Despite, so many different cryptocurrencies, you get to hear only Bitcoin and Ethereum. Bitcoin was launched in 2009 and Ethereum was launched in 2015, and still, they are both the top cryptocurrencies. None of the other cryptocurrencies are able to beat them and take their place.
But Ethereum and Bitcoin have been fighting among themselves to get the first place. Ethereum has always been the only competitor for Bitcoin. But can Ethereum overtake Bitcoin in 2022? Last year closed with great numbers. In November, both Bitcoin and Ethereum have recorded their all-time highest prices. These two cryptocurrencies were expected to increase in value in 2022, But the start was not as expected. The price of both coins fell by almost 30 percent and more than that.
Several factors affect the price of any cryptocurrency. According to experts like bitcoins-revolution.org, the recent crisis between Russia and Ukraine, China banning cryptocurrencies, and several other factors impacted the value of cryptocurrencies. If the question here is whether Ethereum will overtake Bitcoin in 2022, then this is something tough to decide.
Can Ethereum Overtake Bitcoin in 2022?
Let us check out a few details about it:
Market Cap Value:
If you look at the market cap value of Ethereum and Bitcoin then their ratio is at 51.9 percent. So, if both the cryptocurrencies are able to reach 100 percent, then they both will be equal. That simply means Ethereum will have to grow more than its double value. That is because as the value of Ethereum keeps rising, the value of Bitcoin is also rising. Only if Ethereum becomes more than its double value, then it might happen.
Another important factor that you need to consider here is the adoption rate. Bitcoin is having a higher adoption rate than Ethereum. Many service providers accept Bitcoin, but that is not the case with Ethereum. Only a few people do and that is also possible only in a few countries. Bitcoin has become like a brand and hence there is a high adoption rate. But Ethereum is still trying to become that popular and increase its adoption rate.
When compared to Bitcoin, Ethereum will be able to process more transactions. That is one of the major problems faced with Bitcoin. Bitcoin takes at least ten minutes to process one transaction. But Ethereum will be able to process several transactions per second. Another advantage is the transaction fee is also less for Ethereum, compared to Bitcoin. So, this can be a reason why people will start adopting Ethereum more than Bitcoin.
High Energy Consumption:
New blocks of Bitcoin can be added only when complex Bitcoin problems are solved. Very high energy consumption is required for solving these complex problems. But with Ethereum, it is not the same. ETH2 will be able to solve many hiccups that we are facing with Bitcoin. If it works fine for a few days, then the price of Ethereum will go very high. The price cannot even be predicted by the investors and the experts.
Not Possible in 2022:
Both Ethereum and Bitcoin come with their own set of benefits and drawbacks as well. You just need to make sure that you weigh all the benefits against the drawbacks. That is when you will be able to understand whether Ethereum will take over Bitcoin.
As discussed earlier, Ethereum will have to increase more than 100 percent or double what the current price is. Even if it increases 10X of what the price is at present, still Ethereum will not be able to overtake Bitcoin in 2022.
Based on the popularity of Bitcoin, it is hard to agree with the point that Ethereum will take over Bitcoin. But it is not something impossible. It will just take some time to overtake Bitcoin. You just need to plan for long-term investments if you wish to make such huge profits. Miracles do happen, but they cannot be expected to happen overnight. So, you need to have some patience to see this miracle happen. Some day the price of Ethereum will increase. But again predicting whether Ethereum will overtake Bitcoin is impossible to predict, at least not at this moment.