Bitcoin certainly leads the pack in the cryptocurrency industry in terms of value and popularity, but what about Ethereum?
Both are considered big in their own right, but which one is a better investment?
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Bitcoin
Bitcoin, or BTC is the most recognized and valuable cryptocurrency in history. Its overall value is thought to be hundreds of billions and holds more than 50% of all cryptocurrency market cap.
The cryptocurrency is mainly responsible for single-handedly bringing the industry to the forefront. Without Bitcoin there probably wouldn’t be any interest in other crypto coins.
Pros of Bitcoin
Bitcoin is hugely popular and serves as a good bandwagon for those who are thinking of investing in digital assets. Recently, financial bodies and companies have begun expressing interest in Bitcoin, infusing even more money to the platform.
Its decentralized nature is another benefit for investors. This means Bitcoin (and cryptocurrencies in general) are not held by any central bank or figure. It’s an attractive prospect held by the general public and one that’s been consistently going up in value since its creation.
Bitcoin is limited in that there’s only 21 million of them in any given time. Around 90 percent of the crypto has already been discovered, or roughly 18.6 million coins. What’s more, for every 210,000 transactions Bitcoin undergoes ‘halving’, which slows down production. As is the rule of economics, with limited supply comes greater demand.
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Ethereum
Ethereum, or ETH is quite similar to Bitcoin in that it’s a cryptocurrency. However, that’s where it ends. Ethereum was created for a different purpose- it’s a network where decentralized apps can be built. To simplify, Ethereum can be used to create crypto tokens that work different ways.
Pros of Ethereum
Ethereum is gaining ground as a versatile decentralized platform, which means its value won’t be dropping anytime soon. Furthermore, visionaries are using the blockchain to revolutionize the tech industry and financial district as a whole.
The potential of ETH is only equal to the vision of the developers. Ethereum block creation is a novelty in that proof of stake, or PoS drives the minting of the cryptocurrency. Owners are required to provide a collateral to become a network validator.
Mining Ethereum will not require a hardware and investing in electricity. It’s a stake mechanism that innately drives value up over time. DeFi, or decentralized finance eliminates the middleman, therefore making the process more streamlined.
All of these things make buying Ethereum an attractive prospect.
Should You Buy Bitcoin or Ethereum?
Investors will do well to spread their assets in multiple platforms. That said, if you can divide your money then it’s a wise move to invest in both Bitcoin and Ethereum.
Both cryptocurrencies have gone past the speculation stage, and it’s safe to say they’re here for good. Investing in crypto is the same as stocks- you can profit but you will have to have a good strategy on hand.
