December 3, 2020

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Data suggests that Ethereum is becoming a better means of payment than Bitcoin

2 min read
Data suggests that Ethereum is becoming a better means of payment than Bitcoin

The data pointed out in the new article by CryptoSlate suggests that better tender than Bitcoin becomes number two on the market Ethereum.

 

This was highlighted in his blog by Danger Zhang, author of the Coinmonks portal, who explained that there are several reasons that prevent Bitcoin from becoming the main currency of the Internet. Nor does the fact that it has been implemented and is still working on several solutions to its scalability problems.

 

“Most people are not interested in money that changes value from minute to minute. Even people who believe in the story about Bitcoin are usually not interested in paying them – they prefer to hold it because they believe it will have more value. ”he explained his skepticism about Bitcoin as a means of payment in his blog.

 

He thinks that Bitcoin’s volatility and slow time to extract a new block (10min) make from Ethereum a new home for digital payments. The point is that most of the most famous stablecoins, or cryptocurrencies, that copy the price of fiat currencies, are built on this blockchain. Thus, they do not speak directly of the fact that the currency itself is Ether.

 

Zhang believes that stablecoins using Ethereum are the best solution for simple, fast, and inexpensive means of cryptocurrency financial transactions. Regardless of whether it is DAI, USD Coin or Tether (USDT). Each has different functionalities and features. This makes them ideal for everyday transactions.

 

For example, DAI is decentralized stablecoin supported by 150% cryptocurrency collateral. It offers full transparency of its reserves and has automated liquidation mechanisms that are triggered when collateral prices fall below a safe level.

 

Behind USD Coin is the largest US cryptocurrency exchange Coinbase. It is not decentralized, but offers people the ability to quickly withdraw dollars to any account in the United States.

 

Tether (USDT) is the stablecoin with the highest liquidity because it is the oldest on the market. However, it is not transparent enough because its reserves are held in confusing bank accounts.

 

Zhang notes that stablecoins, in his view, are killing the idea of ​​using Bitcoin as a means of payment and pushing forward the Ethereum, on which most stablecoins work.

 

Summary

 

When people realize that they make most digital payments through this blockchain, it can positively affect its price.

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