CBDCs could be Kryptonite for soaring Bitcoin price

Can Ethereum surpass Bitcoin in terms of price or security?
  • The Bitcoin price volatility is giving its potential to Ethereum and CBDCs
  • Ethereum could surpass Bitcoin in terms of security, as the DeFi ecosystem is backing the project
  • CBDCs are being considered as kryptonite for Bitcoin and other crypto assets

The Bitcoin price has continued to surge for the past year. Bitcoin’s rally is outmatched by Ethereum, being the world’s second most famous crypto token. The price of Bitcoin has gone from under $10k to near $60k in the past few weeks. Whereas, it was observed that the price of Ethereum surged from just over $100 to near $2k. Despite the surge, few fear that central bank digital currencies (CBDCs) could be Kryptonite for the leading crypto token. However, Ethereum has no such fears, as its apps and upgrades are expected to keep it stay ahead.

Bitcoin price volatility is making it the risk asset

Bitcoin is the most famous crypto token, and its price surge and store of value made it a more mainstream asset class. However, many in the cryptosphere are still suggesting that although the token is famous, Ethereum has more features. Last week, a Bank of America analyst shared a report talking about a few dirty secrets about the token. Moreover, the analyst deemed that the token is not tied with inflation, and it’s very impractical to consider it as a store of value or payment mechanism. Furthermore, according to the analysts, there is no good reason to own the tokens.

CBDCs will be Kryptonite for the leading cryptocurrency

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The Bank of America analysts also deemed in the report that central bank digital currencies (CBDCs) could be called “kryptonite for crypto.” European Central Bank (ECB) is currently observing its digital euro’s launch. On the other side, Jerome Powell, the chair of the United States Federal Reserve (FED), cited that this year will be a pivotal year in consulting on a future digital dollar. Indeed, these launches can take part in the flagship tokens market capitalization.

DeFi being the backbone for Ethereum blockchain

The analysts have also considered that decentralized finance (DeFi) has been designed to replace banks’ role with blockchain-based protocols. Mostly the sector is built upon Ethereum blockchain. Many consider that DeFi has more potential to be disruptive than the flagship cryptocurrency, and the growth of the sector is the strength of Ethereum. Over the last year, the price of Ethereum has surged tremendously, competeing the price level of Bitcoin. The reason behind the surge is the flood of users who came through the DeFi sector.

Although Ethereum cannot surpass Bitcoin in terms of price, but in terms of security can potentially surpass.

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Ahtesham Anishttp://www.thecoinrepublic.com
Ahtesham Anis is a Computer Science undergrad student currently based out of India. Coming from the business background and his keen interest in Cryptocurrency and Blockchain technology is what Ahtesham brings to the table. He is always an eager learner when it comes to exploring the new technologies and topics in the crypto world.

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