Bitcoin Fee Flippening: A Major Shift Unveiled

• Bitcoin's Rising Influence in the Realm of Smart Contracts
• Ethereum Wanes as Bitcoin Emerges
• Proof-of-stake: Ethereum's Downfall
• Ethereum's Journey to Failure
• Bitcoin's Security and Adoption
• Bitcoin and the NFT Craze
• Bitcoin's Geopolitical Impact
• Bitcoin: A Glimpse into 2024

Bitcoin's Rising Influence in the Realm of Smart Contracts

The term "smart contract" often conjures up images of Decentralized Autonomous Organizations (DAOs), Decentralized Exchanges (DEXs), and Non-Fungible Tokens (NFTs), most commonly associated with Ethereum$2,315 -2.42%. However, this perception is likely to undergo a significant shift by 2024 as Bitcoin$42,260 -0.64% is poised to become the preferred platform for developers, thanks to its robust security backed by proof-of-work consensus method and an efficient fee model designed to incentivize network contributors indefinitely.

Ethereum Wanes as Bitcoin Emerges

Despite repeated assertions from Ethereum supporters about the potential of Ethereum (ETH) to surpass Bitcoin (BTC) in market cap, reality has painted a different picture. Ethereum's market cap has decreased by almost 30% relative to Bitcoin. Ironically, what we're more likely to witness is Ethereum use cases transitioning to the Bitcoin protocol.

Proof-of-stake: Ethereum's Downfall

Ethereum's switch to proof-of-stake (PoS) has effectively plotted a path towards its own obsolescence. Unlike proof-of-work (PoW), which takes into account the physics and engineering of energy consumption, staking uses a voting system to approve the next valid state of the chain. This system inherently favors those with more crypto, perpetuating an inequality reminiscent of the flaws in our current financial system. Moreover, PoS is fundamentally insecure under the same 51% attack threat model as PoW, which is counterproductive to the cypherpunk vision.

Ethereum's Journey to Failure

Many argue that Ethereum has been on a precarious path since its inception, when the Ethereum Foundation created a 70% premine, which essentially allowed the powerful to control the network. Despite past success in fee generation and use cases like NFTs and meme coins, Ethereum seems to be losing ground to the slow yet steady progression of Bitcoin, a sentiment echoed by market trends.

Bitcoin's Security and Adoption

One key area of concern surrounding Bitcoin has been its long-term security model and whether there would be sufficient fees to incentivize miners to continue mining blocks over time. This concern, however, has been recently allayed. Bitcoin has seen transaction fee rewards outperform mining subsidies and fees double the block reward. Additionally, inscriptions, regardless of divergent views on them, have sparked a competitive transaction fee environment.

Bitcoin and the NFT Craze

Bitcoin has become a magnet for NFT enthusiasts, thanks to Ordinals and BRC-20 tokens. While Ethereum NFTs are seeing a decline, Bitcoin NFTs, driven by Ordinals, are gaining traction. Galaxy Research predicts that the market size of Bitcoin NFTs will reach $4.5 billion by 2025, potentially signaling an end to Ethereum's centralized network.

Bitcoin's Geopolitical Impact

Bitcoin is increasingly being recognized by institutions and nations worldwide for its potential to resolve economic challenges. El Salvador has adopted Bitcoin as legal tender, using it to transform its economic landscape. In the West, even presidential candidates have highlighted the benefits of Bitcoin as a solution to loose monetary policies. Bitcoin is on the cusp of entering a new phase of global adoption.

Bitcoin: A Glimpse into 2024

As we approach 2024 and Bitcoin adoption proliferates, it's clear that Bitcoin is integral to a fair and prosperous decentralized future. As stated by Michael Saylor, there is no second best, a sentiment that could be the downfall of alternatives like Ethereum.

Edited by Jonathan Stoker