So as I understand you, you are saying that Ethereum's value is not at all based in its estimated use as a cryptocurrency (by the investors), now and in the future, but its value is instead based solely on some current money scheme, and one which is dependent on the existence of Bitcoin?
I hope I'm not the only one who doesn't know about this. Can you perhaps briefly explain how this scheme works to inflate the price of Ethereum? Or if you have some links/references, maybe you could give them?
I will posit, however, that if Bitcoin indeed has this security flaw and Ethereum does not, then it would seem to me that Bitcoin is the inflated cryptocurrency, and that Ethereum is bound to overtake it at some point, unless of course Bitcoin is able to mitigate this attack vector.
you seem to not know about the underlying economics. especially if you then try to make out that it implies a flaw in bitcoin.. you really have things warped round the wrong way
the reason bitcoin is $50k plus and not $500 is because there is underlying value bottom no one wants to sell below because at some point no one on the planet can mine for less and so no one wants to sell for less.. theres real costs and integrated economics of the PoW that do affect the value premium window which the market price sits in.,. PoS has the fault in its economics of not having this value bottom protection. and it can crash to zero far more easily than bitcoin would
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as to your question.. if ethereum had its own economic sentiment of its own independent community valuing ethereum for its own ethereum purposes.. the market price would never shadow bitcoins market wiggles at a certain ratio
but just check out the market charts
ethereum only hit its ATH when bitcoin hit its ATH.. bitcoin has known market cycles, known factors of its price evolution.. so when ethereum is also peaking/following at the same time as bitcoin, you know its being controlled by bitcoin
ethereum lost its independence of market sentiment on 14th May 2021, and ethereum just become a lame sheep to bitcoins market
bitcoin has a underlying store of value bottom support of $50k meaning its in good secure support. yet ethereum price can crash down to $50.. so keep that in mind
The fluctuations of the price of Ethereum does seem to follow those of the price of Bitcoin as far as I can see. The way I see it, perhaps as naive as I am, this indicates that these fluctuations are due to investors' overall confidence/regard for cryptocurrency fluctuating (put in simplified terms), whereas the relative regard for value of Ethereum vs. the value of Bitcoin remains comparatively constant in the meanwhile.
You seem to think that this is wrong. Is this an opinion you see mirrored elsewhere? Am I simply out of the loop in terms of how cryptocurrency is valued?
Is its price not ultimately based on how useful the investors foresee it to be as currency, and thus how many people will draw utility from the it and use it as a means of payment, in the present as well as in the future?
You also talk of some mechanism that ensures that the price of Bitcoin will never fall below a certain threshold. Can you perhaps provide a link or reference explaining this, or can you elaborate a bit more? It seems a tad unbelievable to be quite honest, but I'm happy to be corrected.