Bitcoin and Ethereum Needs to Work Together To Prevent Centralization
Despite being around for a long time now, numerous individuals still consider cryptocurrencies to be undergoing experimentation. However, Bitcoin has been able to gain some form of importance in the financial domain. This is such that governments and central banks worldwide are planning towards the regulation and introduction of their own digital currencies.
We have numerous cryptocurrencies in the market but Bitcoin remains the leader despite its remarkable shortcomings. At press time, the dominance of Bitcoin was 62.97 percent, while its market capitalization was $ 206.68B.
Recently in a podcast, a crypto analyst and lawyer Jake Chervinsky talked about the cryptocurrency space possibly becoming a ‘Bitcoin-only’ space. The analyst expressed his concerns about the possibility of a Bitcoin-only space becoming a knock-off of the traditional banking system.
According to him, it will be good to prevent a situation whereby the centralization of Bitcoins in banks happens. This will help us to avoid the same problem which the traditional system is still trying to solve.
Nevertheless, there could be a reduction in the dominance of Bitcoin in the coming few days as the majority of the altcoins are now getting better, recovering rapidly after the market crash which happened last month.
Numerous individuals consider the leading altcoin in the market, Ethereum equal or even more efficient and capable than Bitcoin. The leading altcoin has surmounted the key challenges known with Bitcoin, which are transaction speeds and scalability.
Besides, there is attention on ETH2.0 and this could make Ethereum to outperform Bitcoin in every aspect. It is anticipated that ETH2.0 will bring in additional privacy features with an increase in transaction speed.
Based on the argument of Chervinsky, Ethereum is an effort towards the creation of numerous decentralized protocols such that there will be no need to defer to those types of financial institutions anymore.
Featured image courtesy of Shutterstock. Source: Cryptopress.