Academic research claims ETH is a ‘superior’ store of value to Bitcoin
Academic research claims ETH is a 'superior' store of value to Bitcoin
The written report highlights the merits of EIP-1559 every bit a tool for making ETH a deflationary cryptocurrency and potentially a improve shop of value than Bitcoin.
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University researchers in Australia have questioned Bitcoin's (BTC) reputation every bit the best store of value, claiming that Ether (ETH) is on track "to condign the world's first deflationary currency."
A Nov. eighteen newspaper past four Australian researchers discusses how the Ethereum Comeback Proposal (EIP) 1559 upgrade makes ETH a potentially better store of value. The research was co-authored past Ester Félez-Viñas from the University of Technology Sydney, Sean Foley from Macquarie University, Jonathan Karlsen from the University of Western Australia, and Jiri Svec from the University of Sydney.
The EIP-1559 upgrade in Baronial saw the network burn a portion of transaction fees and more than than 1 million ETH has been burned from the 118,583,580 circulating supply.
At times, the report says, transaction fees amounting to more than 50% of the 12,000 newly minted ETH per 24-hour interval are burned cheers to EIP-1559. The researchers believe that every bit need for Ether increases due to its robust ecosystem of decentralized finance applications, more ETH will exist burned.
The researchers write that Ether is already less inflationary than Bitcoin.
"Annualizing the rate of Ethereum creation since EIP-1559, the expected increase in the total Ethereum supply is only 0.98%, being less than half the i.99% increment in Bitcoin supply which is nearly certain in the same period."
The researchers conclude that Ether provides "better inflationary hedging properties than Bitcoin, and Ether may therefore offering a superior long-term value storage than Bitcoin."
There has been growing interest in Bitcoin's hard cap of 21 meg coins and its suitability as an inflation hedge due to rampant money printing during the pandemic and aggrandizement increasing throughout to hit half-dozen.2% in the United States in Oct. Withal, the research suggests investors may as well wish to consider Ether for this purpose.
Ether proponents have begun calling ETH "ultrasound money" in response to Bitcoiners touting BTC equally "hard money" or "sound coin."
Related: Increased utility in DeFi, NFTs dorsum Ethereum's iii-year high in its ETH/BTC pair
However, Bitcoin supporters, such as MicroStrategy head Michael Saylor, favor Bitcoin because they encounter it as infinitely more secure in terms of hash rate and more dependable, given its unchanged supply and infrequently inverse protocol. Ether has been undergoing constant evolution and has seen issuance change. Saylor explained why he believes Bitcoin is the best pick on Tucker Carlson'southward show on Wed, saying, "Bitcoin is the highest form of property that the human race has ever invented."
MicroStrategy purchased another $414 million worth of Bitcoin on Mon.
Source: https://cointelegraph.com/news/academic-research-claims-eth-is-a-superior-store-of-value-to-bitcoin
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