Finally, it arrived. We talked about it, everybody talked, read and think about that day. Finally, it has arrived. Yesterday Ethereum Network processed 240.490k transactions, Bitcoin “only” 222.746k.
This is the confirm of what we (and many others) are trying to say since last year: if Bitcoin will not fix soon its problems (governance, block size and transactions fees) Ethereum will finally surpass BTC. We can say another thing: if BTC doesn’t fix its problems, Ethereum will not the only crypto who could try to surpass BTC. Please, keep in mind that BTC is still stronger than ever: its price continue rising, and the number of daily transactions (the main factor to keep in mind when you want to know the diffusion of a coin) is stuck ONLY due to Dev Core & Co. If Bitcoin will ever fix these problems, Bitcoin’ price could literally EXPLODE (3x or 4x the actual price).
Ok, due to its problems, Bitcoin is stuck. But how was possible that Ethereum surpassed BTC?
We selected 5 main reasons:
- Bitcoin is so far from being a fast way to move money: we don’t want to waste time explaining again what and why.
- ICOs: is not a news, during last year Ethereum based ICOs raised billions. Sure, some ICO was made accepting both Eth and BTC, some other (very few) accepted only BTC, anyway the GIANT number of eth raised with these ICOs (and the transactions to move these funds) helped to reach this goal.
- Speculators/Investors/Startups are looking for altcoins: Bitcoin is EXPENSIVE. It is expensive to move, buy and spend your coins, so why you should use BTC? This point is a consequence of point 1. Sure, several subjects (we too) still hold and trade BTC, and the appeal of BTC for new investors is always something incredible. This is the only reason of BTC high price, nothing else.
- Scalability: by default, Ethereum can process more transactions than Bitcoin. The only day that Ethereum could have scalability problems, miners raised the capacity of each block. This means that Ethereum acted in advance to prevent possible future problems. This is a strong signal about the efficiency of a team/ecosystem.
- Ethereum has something that Bitcoin has not (or at least don’t use as it should): tokens! Like you can see in the image below, Ethereum has 15-25k transactions per day made by tokens. You can check these data by yourself visiting https://ethplorer.io/ .
This is a goal reached sooner than expected, now we can be quite sure that Ethereum could surpass BTC by market cap before the end of the year.
Stay tuned, stay safe.