Bitcoin vs Ethereum: Why Ethereum will never unseat Bitcoin as the King Crypto

The crypto community enjoys pitting Ethereum against Bitcoin like it’s a King Kong versus Godzilla story. In reality, Bitcoin vs. Ethereum is more like James Bond versus one of his maniacal foes. And this story will end the same way- with James Bond being triumphant.

Bitcoin vs. Ethereum rivalry. Picture by Baylee Gramling on Unsplash.

I’m an Ethereum fan. I buy Ethereum (and Bitcoin) daily and my portfolio even has a greater dollar value of Ethereum in it than Bitcoin. I would love it if Ethereum could flip Bitcoin’s value and become King of the Crypto Universe. Unfortunately, it’s not going to happen. Just like the Beatles are considered the best band ever, Bitcoin will always remain at the top of the crypto food chain. Three reasons: function, competition, and community will ensure that Bitcoin will always be the Hulk Hogan to Ethereum’s Macho Man Randy Savage.

Function

Comparing Bitcoin to Ethereum is a bit of a misnomer. It’s almost like comparing a vital organ such as your heart or lungs to an arm or a leg. Bitcoin is a store of value and, as Michael Saylor would say, owning Bitcoin allows you to protect and store your monetary energy. It can’t be printed away at a central bank’s will, its supply is finite and defined on a mathematical inflation schedule, and it can be owned by any person on earth. Bitcoin has no counterparty risk. Unlike most other financial assets, it is not dependent on any third party to derive its value.

Ethereum is not a store of value. It is a crypto commodity. Ethereum is to crypto what the iPhone was to cell phones in 2007. Ethereum has unlocked the ability for smart contracts and decentralized applications to run 24 hours per day with no third party controlling or interfering with their function. Many argue that Ethereum could become a store of value, but that in itself would be a paradox. If Ethereum were a store of value, why should anyone use it for its designed purpose? Wouldn’t it make more sense to use another smart contract platform to perform similar functions if Ethereum becomes more valuable than Bitcoin?

Bitcoin and Ethereum can (and most likely will) co-exist. But just like you wouldn’t go to a financial planner to get surgery on your eye, Ethereum should not be viewed as the best solution for storing wealth…