The two top cryptocurrencies all over the crypto market, Bitcoin and Ethereum, hold for a combined market capitalization of over $1.2 trillion. Both have a track record of providing substantial returns to their investors and shareholders in the long run throughout the past decade. So all you know is that they were the best among all, but let’s try to understand if you would need to choose one of them, which one you should consider based on your needs, choice, investment plans, etc.
Bitcoin and Ethereum are all different cryptocurrencies, and their functions of blockchain are also different along with their serving goals. The motive behind creating bitcoin was to replace the existing currency system by deploying an all-new currency far from anyone’s control, private, decentralized, and more. At the same time, Ethereum is known for bringing smart contracts capabilities that have changed the way systems work versus how they could act now.
As far as their performance is concerned, both digital assets have provided remarkable returns over the past decade. Putting the performance in numbers, bitcoin, from 2015 till today, has grown by about 18,700%; on the other hand, Ethereum has risen by over 22,000% over the same time period. From here, it would give an indication that Ethereum has better investment opportunities than bitcoin and considering its potential for smart contracts that could be leveraged by other projects for their development and growth. Ultimately such activities increase the possibility of expansion of Ethereum and its value.
Now talking about Bitcoin, several reasons are there for which many investors think that the flagship cryptocurrency is better than Eterheuym and any other crypto. Be it its title of being the first cryptocurrency ever, giving it a better brand name than Ethereum.
The second feature that makes it significant is its limited supply, which creates scarcity and makes bitcoin rare with time. Third, BTC is considered gold in the digital world. That makes sense why many people run behind it to make investments.
Another favourable point for bitcoin is it is an autonomous organization that is community-driven. In contrast, Ethereum is different from having the role of control played by the Ethereum Foundation.
Now looking at Ethereum, you will see that many investors strongly believe in smart contract blockchain for several reasons. First and foremost, the usability of Ethereum is way more than Bitcoin has. For instance, the Ethereum blockchain network could act as a platform for building many decentralized applications in the metaverse, DeFi sector and NFT space. Many popular apps and protocols are based on Ethereum, be it Uniswap, Aave, OpenSea and more. Such is why people believe Ethereum has more growth potential than bitcoin.
Another reason people address Ethereum is its shifting from a proof of work consensus mechanism to proof of stakes, which would make it a far more energy-saving network than bitcoin. The merger would also bring way more specifications that would place Ethereum ahead of any cryptocurrency in the market, be it transaction speed, fees, or many such things.
Lastly, bitcoin does not provide its holders with an option to stake their coins and, in return, gain some interest in them; the Ethereum network does. So, based on such analysis and one’s interest, one could choose the better cryptocurrency to invest in for the long term.
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/04/14/which-crypto-should-you-consider-buying-bitcoin-or-ethereum/