Recently I came by a tweet by Andreas Antonopoulos stating:
Which got me thinking – can Ethereum or any other cryptocurrency be seen as a Bitcoin rival?
Bitcoin vs fiat
First, lets look at how Bitcoin competes with fiat.
Looking at the definition, a rival is defined as “A competitor with the same goal as another, or striving to attain the same thing. Defeating a rival may be a primary or necessary goal of a competitor.” and “Someone or something with similar claims of quality or distinction as another.”.
When talking about most fiat currencies like USD, Euro, GBP, etc., or hard assets like Gold or Silver, it might be hard to call Bitcoin a rival to those, at least so far. A lot of national and international currencies exist to facilitate trade, government programs, taxes, etc. on a scale where Bitcoin doesn’t register yet. Previous metals are similarly used for some trade, as well as store of value, speculation, etc.
While Bitcoin can fulfil similar niches as those currencies, the currency would first need to rise in value a few orders of magnitude to be able to compete on the same scene.