Over the last couple of years, financial news outlet Bloomberg has been warming up to the cryptocurrency world, and it has gone as far as providing serious coverage complete with monthly outlooks. For the August 2020 outlook, Bloomberg offers an interesting and unusual take about the factors driving the current Bitcoin and Ethereum rallies.

According to the Bloomberg report, Bitcoin's rally this year can be chalked up to fundamental developments such as supply and demand. With regard to Ethereum, however, the report states that its recent gains are speculative. This assertion is clearly a departure from previous opinions on this matter; not long ago, Bloomberg used to dismiss Bitcoin and virtually all of the cryptocurrency market as a major exercise in pure speculation.

While it is true that Ethereum faces very strong competition from thousands of other tokens, the reality of this blockchain is that it continues to be far superior than Bitcoin's; however, Bloomberg accurately points out that the finite supply of BTC tokens is something that many investors are paying closer attention to. Over the next couple of years, all BTC tokens will be mined and exchanged between digital wallets. On the other hand, the ETH blockchain does not set any limits.

Bitcoin does have another advantage in terms of circulation. While it is true that most BTH tokens are traded as digital investment assets on major exchange platforms such as Coinbase, there are two countries where some level of serious adoption has been taking place: Venezuela and Zimbabwe, where political instability and rampant inflation have rendered fiat currencies worthless. Other tokens such as Dash have tried to compete against Bitcoin in Venezuela through digital wallet integration on new smartphones, but it has not been enough to gain the market share that BTC continues to command.

The core development team of the Ethereum blockchain does not seem to be making any serious moves towards promoting the token as a Bitcoin alternative. It is unclear whether this could change in the future; nonetheless, central banks that are serious about issuing digital versions of sovereign currencies only consider the Ethereum network as their blockchain of choice.