Bitcoin’s market share has plunged from a near dominance of 95% just a few months ago to now stand at 43%. At the same time, Ethereum’s market share has risen from nothing to 26% as its uptrend continues.
A trend which has seen ethereum up, bitcoin down, in market share, for the past few months while for price they both have risen, but ethereum has risen far more and a lot faster.
While ethereum has been experiencing a spring, with household brands forming an alliance and even governments endorsing it, bitcoin finds itself in a harsh winter.
Dell has stopped accepting it for payments, bitcoiners are reporting, in a significant blow to the currency that hoped to see its logo all over commerce.
The reason they’ve stopped is probably because bitcoin has pivoted with some saying it should no longer be used for payments as the dominant narrative has now become that bitcoin is not for “buying coffee.”
Instead, bitcoin is gold, they say, something you just buy and hold, even though the only reason gold is gold is because it was used for buying coffee for millenniums.
That narrative wouldn’t matter if it was not for the fact that it has now become a reality as average fees have risen to $5.50 in the past two months, with median fees standing above $3.
Ethereum now has to meet market demand and rise up to the challenge of providing actual magic internet money as many business owners have recently been asking how they can accept eth.
They’re probably wondering why buy it when you can earn it, combined with asking themselves why on earth would they not accept what can be called the most innovative currency in the world.
On the customers side, those who currently hold the $27 billion of eth value would probably be quite annoyed they have to first convert it to dollars if they want to buy a mac or, as the kids nowadays keep dreaming, a lambo.
So when it comes time to spend it, and eventually everyone will spend it unless they are giving it in inheritance, they’ll probably choose a merchant who accepts eth because that merchant would save them conversion fees.
So demand is clearly there from both sides, but supply isn’t. There is yet no easy way for merchants to accept eth, and although such method can easily be provided, entrepreneurs are probably thinking Coinbase will just add it to their merchant service, so stealing their market.
However, Coinbase might be more focused on scaling so that they can meet demand, on getting margins and futures on their exchange, and perhaps on ICOs, rather than merchants.
As for BitPay, well the name says it. There is no bit in ethereum, although it probably wouldn’t be a problem if their co-founder wasn’t so irrationally against eth.
So the opportunity is there for what is probably a fairly easy service to provide, but you’d be dealing with money, so the start-up would probably need VCs and their due diligence to gain any trust and to take off.