Ethereum is the next one on the line of cryptocurrencies that will skyrocket, according to a prediction of Frank Edward Holmes, the Hive Blockchain Chairman. The reason for it is Ethereum being referred to as ‘the silver to Bitcoin’s gold.’
Holmes was invited to an interview for Kitco News, where he talked about the relationship between the two biggest digital values, Bitcoin and Ethereum.
He then drew a comparison, stating that the market demand for Bitcoin and Ethereum is similar to the one witnessed for gold and silver.
For instance, if gold is to go up by 15-20% then there is a change of around 30% for silver as well. In the same light, the two crypto giants go together, as when BTC explodes and reaches high values, Ethereum is most likely to follow.
Regarding their usage, gold is a safer asset, however, silver has far more uses. Just like this, Bitcoin is safer to store, and then there is Ethereum with the smart contracts on its blockchain that allow it to have more use cases.
Silver, among others, is also used for solar energy and thus helps the environment go green. In addition, it is virus-free and serves in the medical field, goes on Holmes. In concordance with this Etherum can be used for Non-Fungible Tokens and Decentralized Finance. He makes use of these gold and silver parallels to reinforce Ethereum’s importance over Bitcoin.
Holmes also used this interview to talk about the difficulties that the first publicly trader crypto miner, HIVE Blockchain, is facing regarding Ethereum mining. A great number of youngsters use GPU chips for games and they are all into ETH mining, consequently, HIVE Blockchain is left with fewer coins.
As the cryptocurrency was trading at $300 machines used to produce 300 Ethereum, whereas now the number has fallen to 80 per day.
The second-biggest crypto in the market is shifting to a PoS mechanism and this is a great concern to Holmes. He complains that although moving to a Proof-of-Stake can assist ‘shrink the supply outside’, it won’t stop people from mining it.
As per derivates’ open interest, Ethereum has been surpassing even Bitcoin. The average daily open interest for ETH perpetual futures grew 4.7% to $5.8 billion last month, whereas open interest for BTC derivates witnessed a 3.7% fall since August to $11.9 billion, according to a report by CryptoGlobe.
The focus of the interview being Ethereum, Holmes did not forget to say a few good words about Bitcoin as well. He emphasized Bitcoin’s importance as a store of value, praising the crypto coin’s rapid and inexpensive transfer, in comparison to money transfers through banks. In other words remittance between countries is one of the main reasons why Bitcoin is the better option of money transfer.
Also read: Ethereum Miners Holding Onto Their Record Levels of ETH, Not Willing to Sell