Bitcoin’s market share has dropped some 30% in just two months, experiencing a 5% drop in just two days, as the currency faces its biggest congestion yet with more than 118,000 transactions stuck yesterday, unable to move for hours if not days.
This has led to a jump in fees from almost non-existent last year to now $1.50 per transaction, far higher than many traditional competitors and a lot more than other digital currencies which usually have as good as no fees.
Businesses, therefore, have been priced out, as have many use cases, leading them to look for alternatives, with most choosing ethereum, the second biggest currency with a market cap of some $9 billion.
In the same two-months period, ethereum has seen some astonishing gains, rising from around $15 to a high of almost $100. Bitcoin has also increased, but far more slowly, slightly dropping yesterday due to the congestion.
After two years of endless debate on how to increase capacity, bitcoin remains without a solution nor any indication in sight that a decision may be made. That’s because the community is fully divided due to having two very different visions for increasing scalability. As such, it isn’t clear how any decision can be reached.
That has led many to look for alternative networks which actually function for the basic property of transferring value from A to B. Coinbase has hedged with eth, as has seemingly Circle, the Brave Browser, StoreJ and many others, including potentially OpenBazaar.
On top, ethereum has benefited from its own adoption due to its added functionality of smart contracts with much of the market cap increase seemingly because of investors outside of this space.
Many have begun speculating that ethereum may overtake bitcoin to become the leading digital currency with the biggest market cap because of its superiority as ethereum can do everything bitcoin can, and do it much better, while also able to perform functions bitcoin can’t through smart contracts.
It has some way to go for that to be achieved, but things can move very fast in this space, both in excepted ways and in unexpected manners. Conceptually, however, some think ethereum has already overtaken bitcoin due to its clear road-map, far more advanced blockchain platform, united community, and due to its clear leadership as well as decision making process.