Ether ETF Approved: Why Investing in Ether is Much More Sensible than Bitcoin in 5 Points

A thread 🧵

1. Ether is Much Scarcer and Even Deflationary Compared to Bitcoin 📈

Unlike Bitcoin, transaction fees on the Ethereum blockchain do not go directly to miners (validators, we'll get to this).

A significant portion of these fees is burned, permanently removing Ether from circulation. Over time, this reduces the total supply of Ether. You may have heard of Bitcoin's halving mechanism, where the block reward is halved approximately every four years.

Despite the latest halving, Bitcoin’s annual inflation rate is 0.8%, whereas Ethereum’s is -0.19%!

As transaction volume increases, this rate decreases even further. Thus, unlike Bitcoin, the number of Ether in circulation decreases every day.

2. Ethereum is Environmentally Friendly 🌱

Due to its Proof of Work (PoW) mechanism, transactions on the Bitcoin blockchain are verified by miners and added to the blockchain. Mining requires processing power and electricity-consuming devices, leading to significant energy consumption for Bitcoin.

Currently, a single Bitcoin transaction consumes 850 kWh, equivalent to the power consumption of an average U.S. household over 30 days.

Ethereum is using PoS and its consuming 99.9% less electricity than Bitcoin to verify transactions on the network!

This functionality allows developers to create a wide range of applications beyond just digital currency, including decentralized finance (DeFi) platforms, NFTs (non-fungible tokens), and more.

This capability enables decentralized borrowing and lending, earning deposit interest, swapping assets, and developing applications on Ethereum—all accessible to everyone.

4. Ethereum is the New Internet 🌎

Ethereum extends the freedom provided by the Internet much further. Alongside the thousands of applications running on Ethereum, there are also Layer-2 blockchains connected to Ethereum.

These are independent blockchains operating on Ethereum. Each Layer-2 has unique features, similar to the applications on Ethereum—some work as almost free payment methods like Visa or Mastercard, while others specialize in gaming. Just like the Internet, Ethereum has a modular structure in the Web3 world.

5. Ethereum is Future-Proof 👽

Ethereum’s ongoing development and upgrades demonstrate a commitment to future-proofing the network. The platform’s ability to adapt and evolve is crucial in the rapidly changing tech landscape.

Unlike Bitcoin, Ethereum is adapted to new technological developments by thousands of independent volunteer developers. It is a dynamic technology that is continually being updated and improved.

..and there's even more that I haven't written to avoid tiring you out with too much reading..

3. Ethereum is More than Just a Digital Asset 👨‍💻

Ether is the native cryptocurrency of the Ethereum blockchain, designed as a decentralized platform for building and executing smart contracts and decentralized applications (DApps).