Bitcoin and Ethereum are the two largest cryptocurrencies in the market with a market capitalization of over $1.2 trillion. Both the coins have also given substantial returns to their shareholders over the past decade. In this Bitcoin Vs Ethereum piece, we’ll identify the one that is the better investment for long-term investors.
bitcoin vs ethereum
Bitcoin and Ethereum are blockchain projects with different goals. BTC was designed as an alternative currency while Ethereum was built with smart contract capabilities. As a result, many developers have used Ethereum’s platform to build their decentralized products such as Away and Uniswap.
In terms of performance, both have given excellent returns in the last decade. And a closer look reveals that there is a close relationship between the two. Bitcoin has gained about 18,700% since 2015 while Ethereum has gained over 22,000% in the same period. This means that Ethereum has been a better investment than Bitcoin.
case of bitcoin
There are many reasons why many investors believe that Bitcoin is a better investment than Ethereum. Firstly, as the first cryptocurrency on record, Bitcoin has a better brand name than Ethereum. This explains why many institutional investors prefer to keep it in Ethereum. Second, it has a limited supply, which means it will become scarce over time.
Third, BTC is viewed as digital gold, which explains why many people invest in it. And finally, bitcoin is an autonomous organization managed by the community. Ethereum is different because of the role of the Ethereum Foundation.
case for ethereum
Meanwhile, when comparing bitcoin vs ethereum, many inventors strongly believe in ethereum for several reasons. Firstly, he believes that Ethereum has more use cases than Bitcoin.
For example, the platform has been widely used to build decentralized applications in the DeFi, Metaverse and NFT industries. Examples of leading apps in Ethereum are Uniswap, OpenSea and Aave. Therefore, the price of Ethereum will continue to rise as these industries grow.
Second, Ethereum is addressing its carbon footprint issue by transitioning from a proof-of-work network to a proof-of-stake platform. The process is underway and analysts expect the merger to take place. third quarter of 2022, Therefore, Ethereum will be more attractive to ESG-focused investors.
Third, Ethereum has additional features that Bitcoin lacks. The most important one is betting, which happens in Ethereum 2. As a result, it is possible to earn money only by buying and holding the coin.
Therefore, because of these characteristics, in my opinion, I believe that Ethereum is a better investment than Bitcoin.