Australian University researchers questioned Bitcoin’s reputation as the best value storage network among cryptocurrencies. Ethereum is expected to “become the world’s first deflationary currency.”
November 18 Paper Four Australian researchers discuss how EIP-1559 upgrade Make Ethereum A possibly better way to store value. The research was co-authored by Ester Félez-Viñas of the University of Technology Sydney, Sean Foley of Macquarie University, Jonathan Karlsen of the University of Western Australia, and Jiri Svec of the University of Sydney.
Ethereum’s EIP-1559 upgrade in August saw that the network burned part of the transaction fees and more than one million ETH has been burned from the circulating supply of 118,583,580.
Sometimes, it is reported that due to EIP-1559, more than 50% of the transaction fees of the 12,000 newly mined ETH every day will be destroyed. They believe that due to its strong decentralized financial dApp ecosystem leading to increased demand for Ethereum, more ETH will be burned.
The researchers wrote that the inflation rate of Ethereum is already lower than that of Bitcoin.
“Calculated year by year at the speed of Ethereum’s creation since EIP-1559, the expected increase in the total supply of Ethereum is only 0.98%, which is less than half of the almost certain increase in Bitcoin supply of 1.99% in the same period.”
The researchers concluded that Ether provides “better inflation hedging characteristics than Bitcoin, so Ether may provide a better long-term store of value than Bitcoin.”
Due to the massive printing of money during the pandemic, there is growing interest in Bitcoin’s hard cap of 21 million coins and its applicability as an inflation hedge inflation Overall growth in the United States in October reached 6.2%. However, research suggests that investors may also want to consider Ethereum for this purpose.
Supporters of Ethereum have begun to call ETH a “super-sound currency” in response to Bitcoiners’ touting BTC as a “hard currency” or “sound currency.”
However, Bitcoin supporters like Michael Saylor, the head of MicroStrategy, prefer Bitcoin because they believe that Bitcoin is more secure in terms of hash rate and is more reliable given its constant supply and few changes to the protocol. Ethereum is constantly evolving and has changed. Saylor explained why he thought Bitcoin was the best choice for Tucker Carlson’s December 1st show, when he Said:
“Bitcoin is the highest form of property ever invented by mankind.” Micro strategy Bought another 414 million US dollars Bitcoin value on November 29.