RE: Bitcoin And Ethereum - Differences and Flippening
Dear @ga38jem
I'm not sure if comparing BTC to ETH does make much sense. It's a bit like comparing Apple stocks to Tesla Stocks. Two such a different things. Having very little in common.
Even comparing market caps of both doesn't make sense. As it hardly make sense to compare market cap of BTC and ETH.
And let's face it. Bitcoin will exist 30 years from now. But Ethereum most likely will vanish by that time. As 99% of all companies that exist currently.
I never understood this insane comparison between those 2 assets. You hardly hear about anyone comparing GOLD to OIL. Why would we compare BTC to ETH? I don't get it lol
One question: I'm not very familiar with ETH. But I've heard over and over, that their tokeneconomics moved into deflationary environement. In which more tokens are being burned than issued. Is that true?
If that's the case, then ETH market cap will be slowly decreasing , since it's a multiply of price x amount of tokens in circulation.
Am I wrong somewhere?
Cheers, Piotr
Thank you for sharing your thoughts! :)
Yes, I tried to conclude in the article that the comparison is not making too much sense, hence people should not value "the flippening" too much.
I totally agrre with you! BTC seems to be much more resistant and has the highest probability of sticking around.
IRegarding your question: The thing with the deflationary envirnoment is just temporary, there are some days where more tokens are burned than produced but then there are other days where more coins are produced again. Your question is completly valid and you have a point. That is also what I tried to mention in the article. In my opinion it can not influence the market cap too much because one of these two variables (price or supply) will decrease making the market cap not going up.
Just read your reply.
Thanks for always being so responsive @ga38jem