TL;DR

• It feels like there’s a race brewing to see who can create and sustain the most amount of ‘digital-money-ness’ — ETH has the usability, while BTC has the users.

Full Story

Ok, hear us out.

Given that we just wrote about how the ease of use/low cost of smart wallets will elevate the Ethereum ecosystem, this feels relevant…

The gold market is worth 16 trillion while the foreign exchange market is worth 2.4 quadrillion (2,400 trillion).

What does that have to do with crypto?

Well, Bitcoin’s current narrative is that it’s poised to replace gold, while Ethereum is trying to become that, plus a global ‘money.’

Which has seemed misplaced…until today?

Call us crazy, but now — thanks to the advent of smart wallets — Ethereum has become the new contender for decentralized money.

Not because Bitcoin is any less valuable, but because it’s too valuable.

Why sell your Bitcoin when it keeps going up? 

…but to be fair, Ethereum kinda has the same problem.

Difference is: ETH has stablecoins, while Bitcoin doesn’t.

US stablecoins can now be traded via the ETH network for next to no fees for the consumer, via a smart wallet on Ethereum.

Yet, despite the absence of face ripping fees being added to basic transfers, ETH’s value still seems set to scale smoothly, thanks to smart wallets.

The same can’t be said for Bitcoin. Not as a fee generating asset at least — because Bitcoin accrues value mostly because of its scarcity.

…ok, now here’s the twist:

If BTC adopts even a fraction of ETH’s feature set, it’ll likely out-compete Ethereum simply based on the facts that it has more users.

Long story longer:

Right now, it feels like there’s a race brewing to see who can create and sustain the most amount of ‘digital-money-ness’ (it’s a real word, leave us alone).

Ethereum has the usability, while Bitcoin has the users.

Who’s going to win? No idea 🤷