This is why Ethereum is the new Bitcoin

According to this macro-economist, Ethereum is the new Bitcoin. The King is dead, long live the King!

Cryptocurrency has been struggling for months. The most well-known currency, Bitcoin, fell sharply and has more or less stabilized between 22 and 23 thousand euros in the last month. Since the low of mid-July, the price has risen by about 25 percent.

Ethereum was pulled down in the cryptocurrency panic in mid-July, but is now back at a level of around 1,700 euros. This means that the exchange rate of this currency has risen by about 60 percent since mid-July.

Macro economist Alex Krüger compared the price of both currencies with the price movements of the Nasdaq and concludes that the Ethereum and Bitcoin move in price parallel to each other, but not equally sharply.

BTC is now a macro asset, a liquidity proxy. ETH is high beta BTC (ie it moves in line w/ BTC, but more, in both directions). A great way to visualize this is plotting Nasdaq vs ETHBTC, you’ll notice how these two have been moving hand in hand. Macro > Equities > BTC > ETHBTC pic.twitter.com/SZYlwdxsXS

— Alex Kruger (@krugermacro) August 10, 2022

Price Bitcoin vs. Ethereum

If Krüger then dives further into the prices of Bitcoin and Ethereum, he indicates that you will get a better return if you invest in Ethereum than if you choose Bitcoin. Both move in the same direction with the price swings, only in comparison the moves Ethereum makes are bigger. The latter comes out of the bottom better than Bitcoin and therefore the return is also much better.

King Bitcoin is dead, long live King Ethereum. Alex Krüger is convinced that Ethereum has overtaken Bitcoin and is now the right currency to invest in.

Ethereum merge

An update from Ethereum, known as the merge, is expected on September 19. The Ethereum 2.0 update will bring major changes to the network of the most famous cryptocurrency besides Bitcoin. The most important change is the switch from a proof of work (PoW) consensus model to a proof of stake (PoS) consensus model.

This will reduce the energy consumption of the network by 99.5 percent (!). Not unimportant in these times of climate change and all the discussion that entails.

Krüger is convinced that after the merge Ethereum will definitively crown itself as the new king. So invest now if you find his story convincing. The absolute numbers are still in favor of Bitcoin, but the percentages say something completely different, according to him. We will see!