Can Ether head up Bitcoin?

ETHER  is the crypto-currency of the Ethereum network, a decentralized and open-source crypto-currency on which developers can build apps and other crypto-currencies based on it.

ETHER is the crypto-currency of the Ethereum network, a decentralized and open-source crypto-currency on which developers can build applications and other crypto-currencies based on it.  

Ether is the second-largest crypto-currency by market capitalization after Bitcoin and has risen sharply since its inception in 2013, reaching nearly $3,900 per coin, according to the latest data from Coin Market Cap.

Ether is the second-largest crypto-currency in terms of market capitalization after Bitcoin and has risen sharply since its inception in 2013, reaching nearly $3,900 per coin, according to the latest data from Coin Market Cap.

What is the difference between bitcoin and ether?

1- Trading bitcoin and ether does not require an intermediary, as the trading process is based on the so-called system that allows individuals to trade with each other without the need for banks.

This system is based on a modern technology called "blockchain", which consists of records stored on the Internet that are verified and recorded by a decentralized network of computers, called auditors.

2- Ether is faster than Bitcoin when exchanging, as it takes only a few minutes to exchange, unlike Bitcoin, which can take more than an hour sometimes.

3- Bitcoin was designed as a crypto-currency that is traded electronically, while Ethereum was designed to be a multi-use platform.

 One of these uses is electronic trading through the currency "Ether", in addition to building decentralized applications and smart contracts, which is one of the most important uses Ethereum platform.

4- Bitcoin remains the highest in terms of price and market value of capital, while Ethereum comes second to Bitcoin in terms of the market value of capital.

The question that comes to mind now, given the constant fluctuations in crypto-currency prices:

Will Bitcoin continue to dominate the rest of the crypto-currencies, or will Ether surpass it?

That's what the days, or perhaps years, ahead will reveal.

Over the past two months, Bitcoin ( BTC -3.07%) and Ethereum ( ETH -2.90%) have each lost more than 30% of their market value. 

Investor fears about inflation, possible Fed rate hikes, and the ongoing pandemic have triggered a sell-off in risky assets, a category to which crypto undoubtedly belongs. 

Despite the recent losses, among crypto-currency investors, the question of whether or not to jump into Bitcoin or Ethereum is a serious one. Ethereum's 409% rise in 2021 is certainly helping to draw attention to the platform. 

Ethereum is expected to rise significantly 

As of the afternoon of January 18, Bitcoin's market capitalization was $789 billion, while Ethereum's was $371 billion. 

This means that the latter's value is expected to soar 113% over the next 11 months to take the top spot (assuming the former's value remains stable). 

You might think this scenario is out of the question, but there are some positive developments working in Ethereum's favor in 2022. 

Because it is a programmable blockchain, a feature that bitcoin lacks, Ethereum has attracted interest from the developer community. 

More and more developers are creating decentralized applications (dApps), including decentralized financial services and non-fungible token markets. 

There are currently nearly 3,000 different dApps on Ethereum, a number that is growing every month. 

The more dApps there is the more promise of utility there is. And this increase in real-world utility will support demand for Ethereum's native token, Ether. 

In turn, the increased market value attracts more developers, who then create more applications. Thanks to this situation, Ethereum enjoys a powerful flywheel effect. 

Ethereum's upcoming migration to a proof-of-stake consensus mechanism is a catalyst in 2022. This upgrade, called ETH2 or Ethereum 2.0, will include features that will make Ethereum more scalable, secure, and environmentally friendly. 

In addition, the network's throughput potential is expected to skyrocket from 30 transactions per second (TPS) today to 100,000 TPS when the upgrade is completed. 

Currently, Ethereum, like Bitcoin, employs a proof-of-work protocol where miners solve complex mathematical problems to earn the right to add a block of transactions to the blockchain. 

This is extremely energy-intensive, limiting network scalability and increasing transaction fees. If the release of ETH2, already delayed from 2019 to the second quarter of this year, is implemented without major hiccups, it could take the value of Ether to new heights. 

Not only is Ethereum's market cap expected to more than double in 2022, but this also implies that Bitcoin will end the year without having appreciated at all. 

Bitcoin is certainly volatile, but over the past 5 years, it has returned an incredible 4,700%. And as more institutions line up to buy Bitcoin, seeing it as a legitimate store of digital value, the odds are high that it will continue to gain value. As a result, I don't see Ethereum moving to the top spot anytime soon. 

Additionally, Ethereum is facing stiff competition in the smart contract blockchain world with the emergence of Cardano and Solana. 

Both cryptocurrencies are developing solutions to address Ethereum's weaknesses, particularly when it comes to speed and transaction costs. 

Cardano and Solana have strong momentum on their side, as both have gained substantially more than Ethereum over the past 12 months. 

While Ethereum overtaking Bitcoin as the world's leading cryptocurrency is not likely this year, it is still part of a worthwhile investment in cryptocurrencies as part of a well-diversified portfolio.