Appearing on Youtube show ‘FinTech Today’ on March 18, Watkins said that while he does not know “if or when” Ethereum will flip Bitcoin, he does believe Ether could emerge as the top cryptocurrency in the future, due to Eth2, stating:
“The selling point of Bitcoin over Ethereum as a store of value asset boils down its monetary policy being very predictable and the Bitcoin blockchain being very secure. I think that with the shift to Eth2 and to Proof-of-Stake, […] Ethereum may actually potentially be more secure than Bitcoin.”
Watkins also emphasized Ether’s changing underlying economics amid the Eth2 transition, highlighting expectations that Ethereum’s new burn mechanism will result in Ether being destroyed at a rate exceeding the creation of new supply.
He said: “Ethereum’s monetary policy will actually change in Eth2 so that it actually won’t just be just be less inflationary than Bitcoin, it would actually be deflationary. So then, every year, there is actually less and less Ether in existence because it’s being burnt.”
He posted the question: “If Ethereum is more secure and it [has] a stronger monetary policy, well then what is the bull case for Bitcoin in this scenario?”
Watkins added the “massive” and “diverse” economy being built on Ethereum, suggesting the network’s booming decentralized application sector will attract new users at a greater pace than Bitcoin gradually
“At a certain point, the economy of Ethereum begins to attract so much capital, both human capital and financial capital, that it is actually a force in the global economy,” he said. The GDP of Ethereum is actually rivaling many large countries.”
“People can earn livings in this economy,” he said.
According to Blockchain Center’s “Flippening Index,” which uses eight metrics to measure Ethereum’s strength relative to Bitcoin, Ethereum is now 65.6% as strong as Bitcoin — having retraced from an ATH of 72.3% in early February.
The index suggests Ethereum has already overtaken Bitcoin by node count, transaction count, and total transaction fees.