Researchers from an Australian university have questioned Bitcoin’s (BTC) reputation as the best value store, claiming that ethereum (ETH) is on track to “become the world’s first deflationary currency” and potentially a better store of value than BTC.
ETH is a better store of value than BTC
Four Australian scientists have published a report showing how an improvement to the Ethereum Improvement Proposal (EIP) 1559 makes ETH a potentially better store of value than BTC. The study was co-authored by Ester Félez-Viñas from the University of Technology Sydney, Sean Foley from Macquarie University, Jonathan Karlsen from the University of Western Australia and Jiri Svec from the University of Sydney.
EIP-1559 update from August this year. caused the network to burn over ETH 1 million in transaction fees out of the 118,583,580 supply available at the time.
The report says that sometimes transaction fees of more than 50% are burned thanks to EIP-1559. from 12,000 new ETH minted daily. Researchers believe that as cryptocurrency demand grows, fueled by its robust ecosystem of decentralized financial applications, even more ETH will be burned.
Researchers even write that Ether is now less inflationary than Bitcoin.
– Analyzing the rate of ethereum creation since EIP-1559, the expected increase in total ethereum supply is only 0.98%, which is less than half of the increase in bitcoin supply – the scientists pointed out, adding that ETH provides better anti-inflation properties than bitcoin and therefore ether may offer better long-term storage of value than bitcoin.
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