Vinny Lingham: Ethereum cannot surpass Bitcoin

Vinny Lingham, co-founder of Gyft and CEO of blockchain startup Civic, recently said that Bitcoin is a better currency, while Ethereum is not.

Strictly speaking, Lingham’s point is accurate because Ethereum is a blockchain network used to facilitate the development of decentralized applications (DApps). Its native token, Ether (ETH), is not designed to operate in the same way as a digital currency. ETH is the fuel (gas) or fee required to build DApps on the Ethereum protocol.

On the contrary, Bitcoin has been developed and designed as a settlement network since its birth in 2009. Currently, most investors regard Bitcoin as a safe-haven asset, digital gold, a settlement network, and a long-term investment, but as Bitcoin's ideal expansion plan advances, it will be able to gradually evolve into a better performing digital currency.

Investors who bought Ethereum’s native token ETH thinking that it was a better currency or store of value because of its lower fees than Bitcoin are completely off base. While many people believe this, ETH was not designed to be a store of value or currency, and its low fees cannot be compared to Bitcoin unless Ethereum achieves the same use cases as Bitcoin (P2P cash and digital gold).

ETH cannot surpass BTC

It is important to realize that you cannot have both security and flexibility. Blockchain networks must choose the best of both worlds.

Lingham said:

Bitcoin is a better currency, capable of achieving deflation and scarcity. ETH is not a real currency, it has inflationary tendencies and is likely to be over-issued. Flippening (i.e. ETH surpassing BTC) is impossible.

The term “ Flippening ” is a term used by members of the cryptocurrency community to describe a potential situation where ETH’s market value surpasses Bitcoin. Lingham simply explained that flippening may not happen. However, to better illustrate the lack of logic in the existence of flippening, it can be pointed out that ETH and Bitcoin are two completely different blockchain networks with completely opposite development visions, monetary policies, architectures, long-term strategies and development paths, so the two blockchain networks are simply not comparable.

ETH is used to develop decentralized applications and drive the autonomous operation of blockchain networks and companies. The most important component of autonomous enterprises and projects in the ETH network is ICO, which is a fundraising method that does not require the participation of intermediaries and investors in theory.

The characteristics and architecture are completely opposite

Many investors and traders completely overlook the completely opposite characteristics and architectures of ETH and Bitcoin. Through proper research, evaluation and analysis, traders can easily understand that these two blockchain protocol networks should not be compared with each other. One of them is used to drive Dapp operations, while the other is a security-first way to preserve value.

As the famous venture capitalist Naval Ravikant said, Bitcoin only needs to prove its value-preserving function to continue to exist. As long as it continues to exist and solves the potential expansion problem, it can truly transform into a practical digital currency.

Ravikant said:

All Bitcoin has going for it as a store of value is to… continue to exist.

Both have performed very well this year.

From the beginning of the year to now, Bitcoin and ETH have maintained an upward momentum and broken previous records. More and more investors are starting to buy Bitcoin as a safe-haven asset and a way to preserve value, while the ICO market has experienced explosive growth due to ETH.

It is worth noting that Jim Cramer of CNBC made the point that Bitcoin has millions of active users who use the decentralized and transparent nature of the Bitcoin network to settle transactions, ultimately transferring funds to other countries, safely handing money over to another person or business, or keeping it.

Cramer said:

There are many reasons for the growth of Bitcoin price. It is a best way to transfer funds abroad and the first choice for anonymous transactions.