Is it Better to Buy Bitcoin or Ethereum?
Bitcoin was first launched in the market back in 2009. At that time, you could purchase one of the brand-new digital tokens for less than 1 cent. Prices steadily increased – albeit with some volatility for many years – and in January 2021 struck an all-time high of nearly $54,000.
Ethereum debuted in 2015 at less than $3 and skyrocketed to more than $1,400 by 2018. At the time I’m writing this article, Ethereum trades at just a bit over $1,300.
By comparison, General Electric Co. shares initially hit $2.83 in 1995, changing for dividends and stock splits. Today, after 25 years, it goes for about $11.
They’re the 2 most significant cryptocurrencies by market capitalization; similarities more or less end there. Bitcoin and Ethereum are completely different beasts, developed for various factors and with various internal dynamics.
But adequate history – investors would like to know which is the better buy: Bitcoin or Ethereum? Here’s a fast rundown of some of the most significant factors to consider on the financial investment overview for each cryptocurrency.
Bitcoin vs Ethereum: What is the difference?
Bitcoin, the leader of all cryptocurrencies, was developed as a digital currency that would ultimately replace fiat currency. It has inbuilt functions planned to keep a steady store of value in the cryptocurrency.
As being a decentralized currency free from the federal government or commission control, there is a limited supply of Bitcoin in the market, ensuring its value doesn’t become inflationary. And because these features make bitcoin really similar to gold, bitcoin has become a favorite of investors searching for long-term financial investments.
Ethereum, on the other hand, was developed around different concepts and use cases. Ethereum is a decentralized network created for the end-level user.
Among its most popular features is the creation of decentralized applications by users of the Ethereum network, through which smart contracts can be arranged. These features have unveiled a new world of finance called decentralized finance or Defi, which intends to put overall control of digital currencies in the users’ hands.
Bitcoin vs Ethereum: History and performance
Bitcoin is the most significant and earliest coin in the crypto industry. Its name is widely known across the world, and so the coin got to lead the marketplace for the past decade.
It was a leader of the majority of price rallies, and also the one that everyone looks towards when the prices start falling. The coin has had numerous massive surges throughout the years, each time exceeding and reaching brand-new all-time highs. Back in 2017, the BTC rate increased to $20,000, followed by the altcoin market. This has enabled the crypto industry to leave the shadows and become known to the world.
What followed was a huge correction that took BTC from $20,000 to a little over $3,000, triggering many to call it a bubble, a failed asset, and to expect the end of the cryptocurrencies.
3 years later, BTC did not just return to $20,000 but exceeded it, doubling in worth and reaching a new all-time high of $54,800 just a few weeks back.
When it comes to Ethereum, it reached its record cost of $1,440 in the early days of 2018. It followed Bitcoin in its correction over the next few years; and while the coin is already back above $1,000, it did not hit a brand-new all-time high. It did come close once, reaching $1,350, but it did not have the strength to make the final action and hit a brand-new milestone.
These days, Bitcoin is being actively purchased by institutional investors, which has increased its deficiency and price, while Ethereum has started a procedure that could substantially improve its speed, efficiency, security, and bring numerous other advantages, which is why it still has plenty of room to grow.
As you can see, both Ethereum and Bitcoin have comparable timing when it comes to price improvements, however, they both have their own factors as to why they are excellent financial investments.
Should you invest in Bitcoin or Ethereum?
When it comes right down to it, the ultimate talk between Bitcoin and Ethereum as financial investments comes down to an investor’s risk profile. Both are composed to perform well as the world becomes every day more digital and cryptocurrency’s approval grows.
Bitcoin is the more traditional and steady of the two, although the bullish belief among key leaders in the field seems to have only grown over the last year for Ethereum. Same to the majority of financial investments, it’s possible Ethereum’s greater risk brings with it the chance for higher rewards.
It’s not 2009 anymore: Both currencies have sprinted past the proof-of-concept stage; it’s now time for investors who have not considered this asset class in the past to start taking both BTC and ETH seriously.