Why Ethereum will flip Bitcoin eventually.
(previous post got removed , spare me this time ccmod)
Ethereum is a decentralized blockchain with smart-contracts as you all probably know. In this post I will point out the scale at which Ethereum is already operating, giving you a better idea how revolutionary it already is.
On Ethereum you can create your own token, ERC-20. Currently there's already 394,500 Token Contracts. To put that in perspective, the amount of publicly traded companies in the world is estimated at 630,000 companies. Creating a token on Ethereum is extremely simple, so there's likely a lot of 'dead' coins in the list, but the number is still impressive. Tether is the most popular token on Ethereum, with a volume or $105,099,469,661.00 today. One hundred five billion DAILY, to put that in perspective the NASDAQ recorded a volume of 254,089,239,573 last friday. One token on Ethereum doing roughly 40% of the NASDAQ shows the scale at which this coin already operates.
''A smart contract is a computer protocol intended to digitally facilitate, verify, or enforce the negotiation or performance of a contract. Smart contracts allow the performance of credible transactions without third parties.'' – BlockGeeks.
Sectors smart contracts are useful:
- Supply Chain (basically the whole world exists out of supply chains): Imagine you buy canned tomatoes in the supermarket, all the way up the supply chain someone needs to manufacture a new one to keep the store filled with food. A smart contract makes it easier to give that data to the manufacturer, cutting out intermediaries who often do the paperwork. Automating tasks & payments could bring down the cost of producing significantly lower, less administrative burden.
- Healthcare ( $11.9 Trillion): Smart contracts also make it possible to encrypt personal health data on the blockchain, so it's always visible whenever needed. The supply chain can also be regulated by smart contracts, as well as testing results and other medical applications.
- Automobile industry (70m cars yearly produced): The whole world is moving to a more digitalized place every day, car manufactures are working on self-driving cars for instance. A smart contract could determine who's at fault in a crash from data the car provides, or insurance can give you a better rate depending on where you live and how safely you drive.
- Real estate (investment market size $9.6 trillion in 2019): When buying/renting real estate there's always a lot of intermediaries who take a piece of the pie (Airbnb or instance). When you pay with crypto and set up a smart contract, you cut out the middleman. Every financial sector can profit from this, it's more secure and saves the consumer money.
The total marketcap of Ethereum is at the time of writing sitting at $365B, which is large but looking at the potential growth it can have just with smart contracts in some sectors tells me this is far from over. Of course these numbers represent the whole sector, but even if just 5% of the total value flows to Ethereum we will flip Bitcoin.
DeFi is a financial system containing a variety of financial products, all fully decentralized. No bank or authority can stop transactions or freeze funds. Loans can be accessed within a few minutes, while legacy financial institutions can take days.
4 largest DeFi projects by locked USD:
- MakerDAO – $11.43B (lending)
- AAVE – $11.00B (lending)
- Compound – $9.54B (lending)
- Uniswap – 8.2B (DEX).
The global lending market is valued at $6,751.2 billion. Uniswap has a daily volume of $1.89B today, compared to the largest CEX Binance with a volume of 34,33B.
Meanwhile Ethereum is revolutionizing the global markets, Bitcoin is stuck at being a 'store of value'. The total gold marketcap sits at 11.269T, while Bitcoin sits at a marketcap of $1.10T. Roughly a 10x or a price of Bitcoin around 600K and it'll be larger than the current store of value, gold. Pick your bets, but with ETH 2.0 rollout going on you know where I'll put my money. It's not a question of ''if'' but ''when'' Ethereum will take #1 from Bitcoin. (I left NFT's out due to my lack of knowledge about them, better to just not mentioning it instead of spewing bs).