Bitcoin could fall behind Ethereum due to DeFi
Bitcoin, for all intents and purposes, is a decentralized digital asset, whereas Ethereum can also facilitate smart contracts and host decentralised finance (DeFi) tokens, such as Compound token and BAT (basic attention token). For Ethereum, newer and more sophisticated financial instruments can be built on its blockchain — particularly as its developer team remains very active and has four times the number of developers than any other crypto project.
As Bitcoin was built without the capacity for DeFi or smart contracts, some investors may begin to wonder what the point is in holding an asset that arguably doesn’t really do anything, akin to gold and silver. The volumes that have given rise to DeFi projects could very easily work in the opposite direction to wipe out value in the form of a severe pullback — possibly taking Bitcoin with them.
