The founder of 1confirmation proposed a new viewpoint that breaks the traditional binary opposition in the cryptocurrency field, arguing that although Bitcoin (BTC) and Ethereum (ETH) have significant differences in technical paths and ecological positioning, they can together become native value storage means for the internet in the future. The two are not in competition but are building a dual-pillar system of value storage for the digital age through functional complementarity. This conclusion redefines the market's cognitive framework for the two major mainstream cryptocurrencies, provoking deep reflection on the diversification of blockchain value carriers.
From the core logic of value storage, Bitcoin continues the classic narrative of "digital gold," with its fixed total supply of 21 million coins, a decentralized security mechanism based on proof of work (PoW), and the anti-censorship characteristics validated by over a decade of market experience, making it the ultimate anchor of scarcity and stability in the digital world. On-chain data shows that as of May 2025, over 65% of the circulating supply of Bitcoin is controlled by long-term holders (holding for more than 1 year), with institutional holdings accounting for 32%. The continuous expansion of compliant products such as Grayscale's BTC trust and BlackRock's spot ETF is driving its integration into traditional financial balance sheet systems, reinforcing its positioning as a "decentralized value reserve."
Ethereum has opened up another path for value storage with its "programmable value ecosystem." Since merging to proof-of-stake (PoS) in 2022, Ethereum has reshaped token economics through the EIP-1559 deflation mechanism and staking economy—currently, over 23 million ETH (accounting for 19% of the circulating supply) is staked, which not only guarantees network security but also transforms ETH from a mere "fuel token" into a productive asset with yield properties. More critically, the Ethereum ecosystem hosts 70% of global DeFi protocols (with over $120 billion in locked value), 85% of NFT transactions (annual transaction volume reaching $180 billion), and 90% of decentralized stablecoin issuance, forming a complete closed-loop from value creation to storage and circulation. This positioning as a "digital asset operating system" roots its value storage capability in the breadth and depth of ecological network effects and asset bearing.
The technological differentiation between the two creates conditions for synergistic evolution: Bitcoin maintains the purity of decentralization through its minimalist design, becoming an anti-tampering value "foundation"; Ethereum, leveraging Layer 2 expansions (such as Rollup technology that boosts transaction processing speed to over 2000 TPS) and smart contract innovations, acts as a "value router" connecting real assets and the digital world. This division of labor is similar to the relationship between gold and banks in the traditional financial system—the former provides the ultimate secure measure of value, while the latter achieves efficient allocation and derivative applications of value. Real financial practices are beginning to take shape: JPMorgan has incorporated Bitcoin into the underlying settlement layer for cross-border payments, while automating trade financing processes using Ethereum smart contracts; in Fidelity Investments' "digital asset accounts," BTC is allocated as a reserve asset, while ETH is used for participating in DeFi yield farming, forming a layered risk-return management model.
The market is validating the rationale of this "dual-pillar" narrative with data: in the first quarter of 2025, 68% of institutional investors allocated both BTC and ETH, a significant increase from 45% in 2022. The correlation coefficient between the two assets dropped to 0.62 (peak value in 2021 was 0.91), indicating that the market has accepted their different risk-return characteristics. The structural changes in Grayscale's products are even more emblematic—its BTC trust and ETH trust management scale ratio narrowed from 3:1 in 2024 to 1.5:1 in 2025, reflecting a rapid increase in institutional recognition of ETH as a value storage tool.
However, the realization of this vision still needs to overcome real-world challenges: Bitcoin faces regulatory classification uncertainties (the U.S. SEC has not clarified its attributes as "commodity," "security," or "currency"), while Ethereum needs to address the dilution of decentralization after scaling (currently the top five validators control 42% of the staking volume). But in the view of the founder of 1confirmation, these challenges are precisely the driving forces for technological iteration—Bitcoin's Taproot upgrade enhances privacy, and Ethereum's Danksharding technology will improve data availability, with both continuously innovating to consolidate their value storage foundations.
From a more macro perspective, the proposal of this viewpoint marks the cryptocurrency market's transition from the early "ideological struggle" to "pragmatic value assessment." When the traditional financial system faces inflation erosion, geopolitical risks, and a crisis of trust, Bitcoin and Ethereum provide native value storage solutions for the digital economy from the dimensions of "decentralized currency" and "programmable value ecosystem," respectively. This "dual-track system" is not a binary choice but a necessary result of technological characteristics, market demand, and ecological evolution. With the acceleration of real asset tokenization (RWA) and the improvement of Web 3.0 infrastructure, the two may transcend the category of a single cryptocurrency and become the underlying protocols for constructing a new type of value internet—Bitcoin defines the "ultimate form of value," while Ethereum defines the "rules of value flow," jointly supporting the trust system and value coordinates of the digital age. This process requires not only technological breakthroughs but also the synchronous evolution of regulatory frameworks, market perceptions, and global collaboration, but the direction is already clear: in the balance between decentralization and functionality, Bitcoin and Ethereum are jointly writing a new chapter in the native value storage of the internet.