Bitcoin is predicted to lose 50 per cent of its cryptocurrency market share to Ethereum within five years, according to an influential technology expert and business analyst.
Ethereum, the world’s second-largest cryptocurrency by market cap, experienced a price recovery on Friday after a significant sell-off in recent weeks. Bitcoin, the largest digital currency, had also been in decline, but recovered more quickly than its closest competitor. In fact, Ethereum’s value had dropped by 85 per cent this year. Nevertheless, Ethereum regained some ground late last week, increasing by almost 14 per cent following its most recent plunge, only to see its value decrease by 10 per cent again within the past 24 hours.
Ian Mcleod, who established the art-tech agency with renowned art dealer Stephen Howes, commented on the situation: “Turbulence is a regular, and sometimes welcome, feature of the crypto sector. Therefore, the Ethereum rebound was, and is, inevitable. But not only do we think it will rebound considerably before the end of 2018; I believe that over the longer term it will significantly dent Bitcoin’s dominance. In fact, I think we can expect Bitcoin to lose 50 per cent of its cryptocurrency market share to Ethereum, its nearest rival, within five years.”
Mcleod further elaborated, “Ethereum offers more uses and solutions than Bitcoin, and it’s backed with superior blockchain technology.” This advanced technology enables his art business to use Ethereum’s blockchain to create a system where artworks serve as a literal store of value, essentially becoming a cryptocurrency wallet. It also addresses issues of authenticity and provenance, which are critical in the world of art. All artworks are logged on Ethereum’s blockchain with a unique ‘smART’ contract.
Stephen Howes explained, “Using this cutting-edge technology, the art world can eradicate one of its biggest and most expensive problems – forgery – and can protect artists, galleries, and private owners and collectors.”
While acknowledging that there will continue to be fluctuations in the broader cryptocurrency market, Mcleod stated, “Due to its inherent strong core values, Ethereum will steadily increase in value in the next few years and beyond. Unless Bitcoin addresses its scalability issues and improves its underlying technology, it will struggle to catch up with Ethereum over the next five years, especially as the crypto market becomes even more mainstream.” He observed that Ethereum is already significantly ahead of Bitcoin in every aspect except price, a gap that will only widen as more investors enter the cryptocurrency market.
The prediction that Bitcoin will lose 50 per cent of its market share to Ethereum highlights the ongoing evolution and competitive dynamics within the cryptocurrency sector. According to experts, Ethereum’s advanced technology and broader applications make it a formidable challenger to Bitcoin’s dominance.