EIP-1559, an upgrade for Ethereum, is proving to be a groundbreaking upgrade, introducing more benefits to Ethereum miners as well as Ethereum supporters. Now this upgrade has been analyzed and examined by researchers belonging to several universities of Australia who have given the finding that as compared to Bitcoin, Ehtereum is “deflationary” and provides a better value of store than Bitcoin.
A comparative study and analysis of Ethereum v Bitcoin have been compiled by Australian researchers on the basis of “EIP-1559”.
EIP-1559 is an upgrade belonging to the world’s second-biggest cryptocurrency i.e. Ethereum.
The researchers have raised a question on Bitcoin being a better store of investment than any other asset in the world. Instead, they have come to a finding that Ethereum is in fact better than Bitcoin and therefore a better store of value than Bitcoin. They are claiming in their analysis that Ethereum is on the path of becoming a “deflationary” global currency.
The research paper was published on 17th November 2021, which examines the EIP-1559 upgrade of Ethereum. The analysis was compiled by multiple Australian universities such as the universities of Western Australia, UoT, UoS, and Macquarie University.
When the EIP-1559 upgrade was deployed in August, it enabled the Ethereum network to burn transaction fees partially. Additionally, the upgrade allowed the Ethereum network to burn approximately 1 Million ETH coins from the coins circulating within the market. More than 12 Million ETH coins are presently circulating in the market.
At present, EIP-1559 is burning on a daily basis transaction fee which is approximately half the value of 12k newly mined ETH coins. The researchers believe that thanks to DeFi, more new ETH coins are expected to be minted in the due course.
They further note that as compared to Bitcoin, Ethereum is examined to be less “inflationary”. They commented that since the deployment of the upgrade, the supply of Ehtereum has increased by 0.98% only. This is in fact half the ratio of Bitcoin which averages at 1.99%.
After careful examination of both crypto assets and having compared them with each other, the researchers then gave their findings. They are of the considered view that Ethereum is more vibrant and benefitting cryptocurrency than Bitcoin.
It is expected that the US economy would likely see inflation of approximately 6.2% in the near future. Investors are therefore considering investing in digital currencies, especially Bitcoins. However, considering that Ethereum is “deflationary”, therefore, investors must consider investing in Ethereum rather than Bitcoin.
In recent times, a battle has been seen going on between Bitcoin and Ethereum supporters. Bitcoin supporters are claiming that Bitcoin is the most “sound money” in the world. On the contrary, Ethereum supporters too are raising counterclaims that Ethereum however is the “ultrasound money”.