The new DEFI platform enters the market! Earn passively - token sale 0.25 $ I'm going in!

According to academic studies, ETH is a "superior" store of value than Bitcoin

3 min reading

The research emphasises EIP-1559's value as a mechanism for making ETH a deflationary cryptocurrency and perhaps a superior store of value to Bitcoin

University researchers in Australia have cast doubt on Bitcoin's (BTC) reputation as the finest store of value, stating that Ether (ETH) is on its way to becoming "the world's first deflationary currency."

Four Australian researchers released a paper on November 18 that explains how the Ethereum Improvement Proposal (EIP) 1559 update makes ETH a substantially better store of value. Ester Félez-Vias 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 collaborated on the research.

During the EIP-1559 upgrade in August, the network burn a percentage of transaction fees, and more than 1 million ETH was burned from the circulating supply of 118,583,580.

According to the research, EIP-1559 has caused transaction fees amounting to moreover half of the 12,000 newly minted ETH per day to be burned at times.

More ETH will be burned, as per the researchers, as demand for Ether rises due to its strong ecosystem of decentralised finance applications.

As per the researchers, Ether is already less inflationary than Bitcoin.

“Annualizing the rate of Ethereum creation since EIP-1559, the expected increase in the total Ethereum supply is only 0.98%, being less than half the 1.99% increase in Bitcoin supply which is almost certain in the same period.”

Ether has “better inflationary hedging properties than Bitcoin, and Ether may therefore offer a superior long-term value storage than Bitcoin.” according to the experts.

Due to uncontrolled money printing throughout the pandemic and inflation rising to 6.2 per cent in the United States in October, there has been a major interest in Bitcoin's hard cap of 21 million coins and its appropriateness as an inflation hedge. However, the research implies that investors may want to explore Ether for this cause also.

 In response to Bitcoiners proclaiming BTC as "hard money" or "sound money," Ether supporters have begun naming ETH "ultrasound money."

Bitcoin enthusiasts, such as MicroStrategy head Michael Saylor, prefer Bitcoin because it is immensely safer in terms of hash rate and more reliable, due to its stable supply and rarely altered protocol. Ether has been evolving at a rapid pace, and its issuance has changed. On Tucker Carlson's show on Wednesday, Saylor described why he feels Bitcoin is the best choice, adding, "Bitcoin is the highest form of property that the human race has ever invented."

On Monday, MicroStrategy acquired another $414 million in Bitcoin.

Currency Exchange rate Buy cryptocurrency

Buy crypto now

Dear customer,

We use cookies to provide our services correctly and safely. Cookies are small text-based data sets that shall be saved on the device you are using in connection with the use of this instnat website. Cookies are created in order to ensure proper functioning of thes instant website. By clicking the button "I accept and go to the website", you implicitly agree to creation of the cookies on your computer and to deploy automatic tracking and data collection and processing on behalf of the Lushup Holdings FZ LEE. Click the above-captioned button is also tantamount to accepting website's privacy policy. Closing the notification by means of "X" is unequivocally connected with your consent. If you do not agree to any of the above, please discontinue using our Website.

“Cookies” shall make an identification of the software used by you and to customization of this instant website to your needs. Cookies contain the name of the domain from which they origin, duration of period of their storage on your computer and an assigned value.

Third party cookies:
We also use third-party cookies for the following purposes:

  • creating statistics - helping to understand the way Users use the Website, which allows to improve its structure and content with use of the analytical tools
  • defining a user profile - in order to display custom-tailored content in advertising networks.

External entities that might be source of any third-party cookies on this instant Website are as follows:

Using a settings of your web browser or by using pre-set configuration tools available in our service you can independently and at any time change the settings concerning your use of the “cookies”, specifying the conditionsof their storage and how your device is creating and downloading them. These settings can be changed to block the automatic handling of cookies in the settings of your web browser or inform about their placement on your device each time.

Detailed information about the options related to use of “cookies” is available in the settings of your software (web browser).

Service privacy policy

This instant document lays out the principles of the Privacy Policy on the website (hereinafter referred to as the "Website" or "Service"). The administrator of the Website is Lushup Holdings FZ LEE, Fujairah - Creative Tower, P.O.Box 4422 Fujairah, United Arabs Emirates.

The full document to read the Tokeneo privacy policy is available in this document.

Advanced settings can be changed in your browser.