Australian university researchers have published a paper that says that Ethereum is a superior store of value than Bitcoin, questioning the BTC’s reputation as the best store of value network in the crypto world. It adds that Ethereum is on the way to becoming the world’s first deflationary currency.
Four Australian researchers published a study on Nov. 18 exploring how the EIP-1559 upgrade helps ETH become a potentially better store of value. Ester Félez-Vias of the University of Technology Sydney, Jonathan Karlsen of the University of Western Australia, Sean Foley of Macquarie University, and Jiri Svec of the University of Sydney collaborated on the research.
During the EIP-1559 upgrade in August, the Ethereum network burned a fraction of transaction fees, resulting in the burning of over one million ETH from the circulating supply of 118,583,580 ETH.
Transaction fees equal to more than half of the 12,000 freshly minted ETH each day are burned, according to the research. They anticipate that as Ethereum’s powerful ecosystem of decentralized finance dApps gathers momentum, more ETH will be burned.
The paper further states that the Ethereum network is already less inflationary than Bitcoin. It states:
“Annualizing the rate of Ethereum creation since EIP-1559, the expected increase in the total supply is only 0.98%, which is less than half the 1.99% increase in Bitcoin supply in the same period.”
Ethereum is called “ultrasound money”
Ethereum supporters, after the research, have started calling Ethereum “ultrasound money” as the tout to Bitcoin, which is called “sound money.”
However, Bitcoin-supporting players like MicroStrategy, which bought another 7002 units of BTC, favor Bitcoin, saying that it sees BTC as more secure in terms of hash rate and infrequently changed protocol.