Dan Morehead, the CEO of Pantera Capital, said that Ether has more potential than Bitcoin as a newer cryptocurrency. He also said that the latest EIP-1559 will help the token trade more like a fixed asset.
It has been reported that one of five EIPs in the Ethereum London upgrade, EIP-1559 is an anticipated update to Ethereum’s existing fee structure, introducing a minimum payment for sending Ethereum transactions and move away from a bidding system that allows miners to prioritize the highest bids.
However, designed to programmatically adjust fees for users to pay the lowest bid for each block, the EIP-1559 upgrade could potentially make Ether a deflationary asset.
“You’ll see a transition of people who want to store wealth, doing it in Ether rather than just Bitcoin.”
He added that the cryptocurrency’s shift to Ethereum 2.0 will significantly reduce Ether’s mining energy consumption levels compared with the one of Bitcoin. Ethereum’s wide implementation in decentralized finance (DeFi) applications would also help Ether grow bigger than Bitcoin.
Likewise, despite predicting a brighter future for Ether, Morehead is still optimistic about Bitcoin’s growth in the future. The CEO reportedly predicted that Bitcoin would trade between $80,000 and $90,000 by the end of 2021, rising above $120,000 within a year.
He noted that surging mainstream adoption could further drive Bitcoin’s price to as high as $700,000 in the next decade.
Thus, Morehead is not alone in thinking that Ether could outperform Bitcoin in the future. Mike Novogratz, the founder and CEO of crypto investment firm Galaxy Digital, predicted in late June that Ether could become the “biggest cryptocurrency one day.”