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As of March 3rd, COINOTAG reports that Bitcoin has traditionally been regarded as the preeminent “digital gold.” However, in an intriguing development, Ethereum has recently outperformed Bitcoin in terms of supply expansion. Since the pivotal September 2022 merge, Ethereum’s supply growth rate has notably registered below that of Bitcoin, prompting a reevaluation of the assumption that Bitcoin primarily represents sound money. Unlike Bitcoin’s capped supply of 21 million coins, Ethereum flaunts a more dynamic design, allowing for fluctuations in its supply based on network demands. This adaptability means that while Bitcoin offers strict scarcity, Ethereum provides a more flexible framework to respond to market conditions. If sound money could be defined by its capacity for supply adjustment, Ethereum’s recent performance may indicate a shift in how we assess these currencies, challenging conventional wisdom in the crypto landscape.
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