Will Ethereum 2.0 surpass bitcoin?

Bitcoin is 12 years old and Ethereum is 5.5 years old.Ethereum 2.0 makes it more like bitcoin.(I say the Internet because Ethereum and bitcoin are not companies - another cool feature of these two technologies.

Ethereum is cool.But the problem is that it's very complicated.

I participated in Ethereum in 2016.It's one of the best decisions I've ever made.It has not only brought me rich profits, but also brought great advantages to my career.Being able to explain Ethereum in simple language is a superpower.I hope you can master this power so that you can make good use of it.

Bitcoin is easy to understand: slow moving digital gold.When people say bitcoin is a currency, or it's not for shopping, they don't understand it.Bitcoin is a long-term savings account that relies on scarcity (there are only 21 million bitcoin) and codes to protect it from inflation.this is it.

Ethereum is much harder to understand.It has thousands of use cases.That's why if you start learning about Ethereum and what it does, you can do it well.Every day I learn something new about Ethereum.It's a beast.

Why pay attention to Ethereum?

It is the second largest cryptocurrency and it was launched in 2015.

The network effect of Ethereum is impressive.The network effect helped the last generation of technology companies make a lot of money.The next generation of technology will be blockchain driven, decentralized technologies, such as Ethereum.

Some experts even said that the scale and price of Ethereum will exceed that of bitcoin.That's why you need to focus on Ethereum.

What is Ethereum?(for ordinary people)

-Ethereum is a worldwide computer platform serving decentralized applications.
-Ethereum is becoming more of a trading and settlement layer.
-Ethereum introduced programmable currency through smart contracts.

• Vincent Tabora

These are three things Ethereum is famous for.It can do a lot of things.Many cryptocurrencies are built on Ethereum, which further increases its practicability and value.Ethereum has helped to implement defi (decentralized Finance).
Defi is also easy to understand.Defi reduces costs by removing middlemen from all existing financial products we already use.

Trust on the Internet is broken.

Ethereum is a way to fix ownership, using code for validation, rather than someone who benefits from existing trust systems.

Imagine, in this world, banks, visa, MasterCard, AMEX have all been replaced.This is what Ethereum has begun to achieve slowly.Trust is a bigger issue than storing value and protecting it from inflation.This is why Ethereum has the potential to be much higher than bitcoin in the long run.

This is a signal that determines whether the price of Ethereum exceeds that of bitcoin

Raoul pal is a financial legend.He has recently moved from putting most of his money into bitcoin to putting some into Ethereum.

Raoul has come up with a simple way to measure the potential future prices of bitcoin and Ethereum.Both cryptocurrencies have a concept called address.An address is like a user's account.

Raoul has shown that as the number of user accounts increases - like Facebook, twitter, Uber, Netflix, etc. - the price per coin and the total value of the network will also rise.(I say the Internet because Ethereum and bitcoin are not companies - another cool feature of these two technologies.Ethereum was founded by thousands of developers around the world who dedicated their time to this project and integrated their resources.)

This phenomenon is called Metcalfe's law.Metcalfe's law has been used in finance for many years.What you need to know is that this law helps to explain how a network grows, and it helps you to value a network like Ethereum.

The screenshot was obtained from GMI / Raoul pal via Twitter

From Raoul's analysis, Ethereum is "more viral than bitcoin".

BTC=ETH。in fact.Different assets, different ecosystems, the same application, the same behavioral economics = same but different... -- Raoul pal

Ethereum 2.0 increases opportunities

Ethereum is starting to be exciting.Then the Ethereum developers decided to announce Ethereum 2.0.This change is not easy to understand, especially if you don't work in technology.

In essence, Ethereum 2.0 makes it more like bitcoin.This should surprise you.Bitcoin is magical because of its scarcity and deflation.Ethereum 2.0 introduces the following:

• Staking

Anyone can verify the Ethereum transaction.Most of you don't do that when you read this story.Transactions need to be verified by the Ethereum network to create trust.By using Ethereum network to create trust, you don't need a middleman to do this.

The old method of verifying Ethereum transactions is called "proof of work" (POW).Human owned computers solve mathematical problems and consume electricity in the process (similar to bitcoin's way of working).With climate change becoming a hot topic, electricity consumption is seen as a bad thing.

With the pledge, if you want to verify the transaction, all you need to do is deposit and lock 32 eth.When you help validate Ethereum transactions, you can earn Ethereum.What does it matter?

Pledge means that those who verify and protect the network must have skin in the game.The skin in the game makes the people connected to the network and the network itself more valuable.

Pledge means that Ethereum will also be available less, as part of the supply will be locked in by the person who chooses to pledge.Less Ethereum means more scarcity.Scarcity is a feature that makes bitcoin very valuable.Over time, it will have a similar effect on Ethereum.

• Sharding

Sharding in Ethereum 2.0 is coming.For us ordinary people, this means that the Ethereum network will be divided into 18 small parts.This will help speed up the network.Sharding will allow the network to process more transactions per second.
A faster Ethereum network will further increase its value.

• The magic of token destruction on the price of Ethereum

Recently, the transaction cost of Ethereum has been very high.Ethereum 2.0 has made a fundamental change.Previously, those who verified the transaction could set the transaction fee price.This makes greed and overcharging possible.

With the advent of Ethereum 2.0, the price of verification transaction is set by the network and adjusted according to the network activity.This change prevents greedy people from taking advantage of normal people.

Pay close attention to the next part.Token destruction is also enabled for this update.Token destruction refers to the destruction of a certain proportion of transaction costs paid to those authentication networks.This will reduce the overall supply of Ethereum over time, further realizing the glorious scarcity similar to bitcoin.

Simply put: as network usage increases, the supply of eth will decrease.

This means that as more and more people adopt Ethereum, the number of Ethereum will decrease.When the number of Ethereum decreases and the demand increases, the price of each Ethereum will rise.

Token destruction is deflation, as opposed to inflation.The value of the dollar will decline over time as more dollars are created out of thin air.Ethereum is programmed to be deflationary - meaning that value is rising rather than falling like the dollar.

Summary of Ethereum 2.0

Faster

Cheaper Ethereum deals.

More secure.

Be able to carry more use cases of technical solutions (applications / software) that need to solve trust problems (who will be asked to fix social media).

Easier to understand and use.

Provide in-game skins for those who choose to validate Ethereum transactions.

Provides a better way for people to make money from building and working on Ethereum.

Great change: over time, Ethereum has become increasingly scarce.

Should you invest in Ethereum?

Only you can answer this question according to your own situation.Stocks don't feel right for me right now.I don't like buying at historical highs.So I will definitely buy more Ethereum.I use the 80 / 20 allocation rule to compare tecoin and Ethereum.If I invest $1000, then $800 goes into bitcoin and $200 goes into Ethereum.

There is no doubt that Ethereum will play a huge role in our lives.I think it's worth a small amount of investment, but only if you have money ready to take risks.

Ethereum is quietly changing the world

The current version of the Internet has collapsed.It's central, it's open, it's easy to manipulate, just as we've seen companies like Facebook abuse our trust in the last two years.

The future of the Internet will not be owned by several big technology companies, and the future of the Internet will be owned by users again.Users will have their own data and destiny.

Web 2.0 is a readable and writable platform.

Web 3.0 is a readable, writable and owning platform.

Ethereum implements Web 3.0, so it has value and grows rapidly after bitcoin.Ethereum is likely to be the conduit for all future applications.

In the war against early search engines, Google is a sleeping lion.In the war against the reconstruction of traditional finance, Ethereum looks like a sleeping lion.Bitcoin is an excellent idea that solved the problem of value storage and spawned digital gold.

Bitcoin is 12 years old and Ethereum is 5.5 years old.Ethereum still has a long way to go and is just starting.Bitcoin is big.Ethereum has greater potential.Let me tell you why in one sentence:

Ethereum has the ability to reshape the global financial system, become a platform for all future decentralized applications, and solve the problem of ownership once and for all.

These three points are that Ethereum has become a sleeping lion, which is also the reason for the rapid growth after bitcoin.Ethereum 2.0 will make Ethereum more scarce, and bring new simplified functions to imitate some positive factors of bitcoin.

You can benefit from the Ethereum revolution through your own research and incredible patience.The future is built on Ethereum in front of you.Dare to pay attention to it.