The cryptocurrency market provides a vast ecosystem of possibilities that attract academics, economists, and researchers from all parts of the world. A new study has recently come forward that argues that Ethereum can become a better hedge against inflation in comparison to Bitcoin. Before the start of this year, the cryptocurrency market was a novel concept for the majority of the masses.
However, owing to the COVID spread and the massive progress of cryptocurrency markets, more and more people have started to venture into nascent investment options. As more investors are entering the digital asset market, the second-largest cryptocurrency Ethereum has started to gather the attention of investors due to its utility and popularity among investors.
Bitcoin has managed to compete against gold commodity as a store of value and inflation against the hedge. The vast majority of Bitcoin holders have reported massive profits that are many times higher than the current inflation rates of 6%. Based on the government money printing policies, the inflation ratios are expected to go much higher in the upcoming months.
Ethereum to Become Top Inflation Hedge
Therefore, more investors have started to flock around Bitcoin. At the same time, digital investors have started to view Ethereum as a viable alternative to Bitcoin. Ethereum statistics show that it has managed to leave behind Bitcoin on the year-on-year index. Researchers from the University of Sydney and Macquarie seem to agree with the idea that Ethereum might overtake Bitcoin.
According to the economist, one of the biggest driving forces behind crypto market popularity is the increasing inflation rates. The Australian academics claim that more people learning about the cryptocurrency market have started to create a higher appeal for Ethereum based on the lined-up upgrades.
It is worth noting that Ethereum developers have scheduled a major Ethereum 2.0 merger to take place in 2022 that will further enhance the investment interest. On the other hand, Bitcoin has been shot down by critics on account of requiring massive power input for mining and allegedly leaving behind a huge carbon footprint.
