Guy, host of the cryptocurrency channel Coin Bureau, talked about whether Ethereum (ETH) is likely to replace Bitcoin (BTC) as the largest cryptocurrency.
In a new video, Guy talked about two factors that could decide whether this will happen in the coming months.
“As for when we will see ETH surpass BTC, it is possible that sooner or later it will happen. It really depends on the two factors I mentioned earlier. Namely: approval of a spot Bitcoin ETF (exchange-traded fund) and its merger with Proof of Work and Proof of Stake on Ethereum. These two events could well happen in the same month. The Bitcoin ETF application may be approved by March, and the convergence of Ethereum does not seem far off. But if a spot Bitcoin ETF is approved, it will be impossible for ETH to catch up with BTC even if the merger is a huge success. ”
Guy continued his speech as follows:
“If the merger happens before a spot Bitcoin ETF is approved, there may be a case of Ethereum overtaking Bitcoin, at least temporarily. The only caveat here is that we may enter a bear market once the Federal Reserve starts raising interest rates… If the bear market continues in full swing when the merger arrives, it probably won’t be enough for Ethereum to surpass Bitcoin. because the market momentum won’t be there. Conversely, it’s hard to imagine a bear market where the spot Bitcoin ETF is approved, which logically means that ETH is unlikely to replace BTC in the short term. ”
The analyst also weighs in on the idea of Ethereum replacing Bitcoin as the number one cryptocurrency:
“Bitcoin and Ethereum are fundamentally different. BTC is digital gold and ETH is digital oil. It doesn’t matter for either asset if the market value of crude oil has overturned the market value of physical gold or vice versa, so why does it matter if the oil and gold in question are digital? From where I stand, both cryptocurrencies face unique challenges to grow, but both will ultimately prevail in their respective niches. ”
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