In the past, around 2017, the first rumors had already circulated about a possible overcoming by the Ethereum of the most famous of all cryptocurrencies: Bitcoin. Although the latter still continues to maintain a podium from which it seems impossible to get off, the value of the Ethereum has continued to rise steadily over the past few years, and many analysts have suggested that an overtaking may be more than possible in the short or medium term. term. Let's take a closer look at the reason for this theory.

Bitcoin vs Ethereum - is overtaking possible?

Blockchain technology has been the subject of great attention from all the planetary exchanges for several years now. Even more so today that cryptocurrencies are increasingly gaining ground in electronic transactions and international payments, the enormous potential of these virtual currencies is more than consolidated. Although Bitcoin remains the most used currency in all online transactions, still the best-known practical application of the blockchain, Ethereum (ETH) remains a second in the ranking and a very uncomfortable opponent.

Ether, or the Ethereum token, is based on a different blockchain application. The value of the cryptocurrency is directly connected to the value of the market and the spread of the app that uses it. In summary, if the applications of this app were to increase, making this technology more and more mainstream, the value of the token (the ETH) will continue to rise accordingly. Already today, ETH is valued at $ 200, with a market capitalization of over $ 20 million. The potential is such that it even surpasses Bitcoin itself.

What is Ethereum and how does it work?

Designed by Vitalik Buterin in 2013 and launched in 2015, Ethereum was originally created to expand and enhance the functionality of Bitcoin. It is a blockchain developed to support the creation of decentralized applications and smart contracts (called "smart contracts") through its virtual machine (EVM).

The ETH token is purchased to pay for the "fuel" needed to power the computational power of the EVM when smart contracts are generated. In other words, each user who signs a smart contract buys some virtual "tokens" which they use to work the EVM.