Australian university researchers have questioned Bitcoin‘s reputation as the best crypto store network, with Ethereum on its way to becoming “the world’s first deflationary currency.”

A November 18 paper by four Australian researchers discusses how the EIP-1559 upgrade is making ETH a potentially better store of value. The study was jointly commissioned by Ester Félez-Viñas from the University of Technology Sydney, Sean Foley from Macquarie University, Jonathan Karlsen from the University of Western Australia and Jiri Svec from the University of Sydney.

Ethereum’s EIP-1559 upgrade in August caused the network to burn some of the transaction fees and over a million ETH from the circulating supply of 118,583,580.

At times, the report says, transaction fees amount to more than 50% of the 12,000 new ETH that are being mined daily and burned thanks to EIP-1559. They believe that as the demand for Ethereum increases, due to the strong ecosystem of decentralized finance dApps, more ETH will be burned.

The researchers write that Ethereum is already less inflationary than Bitcoin.

“If you calculate the annual Ethereum generation rate since EIP-1559, the expected increase in total Ethereum supply is only 0.98%, less than half the 1.99% increase in Bitcoin supply, almost certainly the same Period.”

The researchers concluded that ether “offers better anti-inflation properties than Bitcoin and therefore can offer superior long-term store of value compared to Bitcoin”.

Interest in Bitcoin’s hard limit of 21 million coins and its suitability as an inflation hedge due to rampant money printing during the pandemic and soaring inflation that reached 6.2 percent in the US in October, consider Ethereum for that purpose.

Ethereum supporters have started calling ETH “extremely good money” in response to Bitcoiners calling BTC “hard money” or “good money”.

Related: NFT increases utility in DeFi and returns to Ethereum’s 3-year high in its ETH / BTC pair

Bitcoin proponents like MicroStrategy boss Michael Saylor, however, prefer Bitcoin because they see it as safer in terms of hash rate and more reliable because of its constant supply and fewer protocol changes. Ethereum has gone through a process of continuous development and change. Saylor explained why he believes Bitcoin is the best option on Tucker Carlson’s December 1st show when he said:

“Bitcoin is the highest form of wealth mankind has ever invented.” In November, MicroStrategy bought another Bitcoin worth $ 414 million.

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