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Cryptocurrency Price Speculations / Re: Why is Ethereum price action still influenced by BTC even after decoupling?
« on: Today at 04:35:38 PM »Technology-wise, Ethereum with smart contracts has many more features than Bitcoin. In fact, if I had to choose only one crypto to apply to the world, I would probably choose Ethereum. The ETH marketcap is also expected to surpass the BTC marketcap, but that is unlikely to happen even though ETH has an infinite total supply, as the market has chosen BTC as the crypto king. I can only hope that in the future, ETH will surpass BTC in terms of daily trading volume, just as USDT has surpassed BTC.
Despite how good and valuable ETH is in its vast ecosystem, ETH is still just an ALTS and only receives inflows after BTC has recovered and stabilized at a new higher price zone, and is also heavily influenced by BTC price fluctuations because BTC price is still considered an health indicator of the entire crypto market. I don't think this will change anytime soon in the next few cycles, perhaps only the widespread adoption of the Ethereum blockchain into the new economy can make the ETH price supported by business demand and less dependent on the BTC price.
I'm not saying that ETH doesn't have its purpose and application in the crypto world (unlike most alts), but I think Bitcoin is still superior to any alts due to its true decentralization, use of proof of work, and the fact that it wasn't created to make its creator or people around him got rich. In addition, Vitalik has made many "strange" statements about BTC over the years, and always seemed quite frustrated that he failed to create a coin that would dethrone BTC.
The fact that ETH does not have a max supply and that it has moved to POS is not something that ensures a bright future for it (at least I think so), but the fact is that many people choose ETH as an investment only for the reason that, unlike BTC, it is much cheaper.