Ethereum vs. Bitcoin as Investment
Bitcoin has been the leading cryptocurrency for over a decade now. As the first cryptocurrency, it retains its position as the most valuable coin in the sector. While Ethereum has been one of the most widely used cryptocurrencies, it has been on and off the second place. Ethereum is considered by many as the cryptocurrency to perch Bitcoin from the leading role, but it is yet to do so.
As the two leading cryptocurrencies, Bitcoin and Ethereum are the primary cryptos of choice for investors. However, which of the two is the better option? Is it better to invest in Bitcoin or Ethereum? Which of the two is expected to bring a better return in the long run?
In this post, we will analyze Bitcoin and Ethereum investments. The information contained here will help you make an informed decision when choosing which cryptocurrencies to invest in.
Bitcoin is the first cryptocurrency created. The coin was established in 2016 by a person or a group with the pseudonym of Satoshi Nakamoto. The creation of Bitcoin opened up the way for the other cryptocurrency. Asides being the first cryptocurrency, it also has the most significant market value. Bitcoin accounts for over 50% of the entire market cap of the crypto sector.
Satoshi created Bitcoin intending to take financial power and control from the government and hand it over to the people. Cryptocurrencies now serve as alternative forms of currency and are gaining use in all parts of the world. All thanks to Bitcoin.
Read our full guide to Bitcoin investment here.
Ethereum was founded in 2013 by Vitalik Buterin, and it helped usher in the age of smart economy. While Bitcoin aims to become a secure, censorship-resistant value system, Ethereum was designed to serve as a decentralized global computer. The Ethereum network allows users to develop and run decentralized applications via the Ethereum Virtual Machine (EVM).
Basically, Bitcoin serves as money while Ethereum serves as a smart contract. Bitcoin aims to become a digital gold while Ethereum aims to become a giant platform that supports smart contracts and decentralized app.
Bitcoin vs. Ethereum statistics
|Market cap (USD)||188,724,225,681||19,145,672,533|
|Circulating supply||17,914,812 BTC||107,600,280 ETH|
|Return on investment (ROI)||>8,000%||>6,000%|
To properly analyze the investment power of the two cryptocurrencies, we will have to look at their statistics.
Price: Bitcoin is the most valuable cryptocurrency despite losing over 50% of its value since the Bull Run of 2017. A single Bitcoin trades around $10,000 at the moment, which dwarfs the prices of other cryptocurrencies. Ethereum, on the other hand, is down by over 80% from its all-time high of $1,500. Ether currently trades at $177 per coin, which is significantly lower compared to Bitcoin.
Market cap: Bitcoin still leads in terms of the market cap. It accounts for over 50% of the entire market cap of the cryptocurrency sector (at $188 billion). The market cap is a reflection of the price of Bitcoin and its circulating supply. Ethereum’s market cap ($19 billion) is considerably less than that of Bitcoin. Despite having a more abundant coin supply, Ethereum’s low price means that its market cap is lower than that of Bitcoin.
24h volume: As the largest cryptocurrency, Bitcoin has a more significant 24-hour trading volume. Bitcoin’s daily trading volume is triple that of Ethereum, at $18 billion and $6 billion respectively. This data signifies that BTC is used more often than ETH.
Circulating supply: Ethereum has a more significant number of coins in circulation compared to Bitcoin. There are 107 million ETH coins currently in circulation. Bitcoin meanwhile has a total coin supply of 21 million and 17 million of them are now in circulation. Because Bitcoin has lesser coins in circulation, the scarcity and high demand for the cryptocurrency play a part in pushing the price higher.
Return on investment: In this area, Ethereum is the standout winner. The smart contract cryptocurrency has an ROI of over 8,000% since its inception. Bitcoin, on the other hand, has given people an ROI of over 6,000 during the same timeframe. From their ROIs, it is fair to say that both asset classes have given users substantial profits over the past few years.
Pros of Bitcoin investment
Bitcoin, as the leading cryptocurrency offers a lot of benefits to investors. Here are some of the reasons why you should invest in Bitcoin now.
- It is currently the most expensive cryptocurrency
- The scarcity in the number of coins could create more demand and as a result, cause an increase in price.
- Bitcoin accounts for over 50% of the total cryptocurrency market cap.
- The upcoming mining halvening by next year could push price higher in another Bull Run.
- It is the most popular cryptocurrency and as such, has a higher demand over the others.
- Most market analysts believe its price could more than triple over the next few months.
- Bitcoin acceptance as a means of payment continues to increase amongst vendors
Pros of Ethereum investment
Ethereum remains the silent competitor to Bitcoin. The second-largest cryptocurrency is still way behind Bitcoin in terms of market cap and price but offers a remarkable investment opportunity. Here are some reasons why you should invest in Ethereum.
- Ethereum offered an impressive return on investment to users over the past few years.
- Ethereum’s technology offers numerous solutions to the global economy.
- As the second most popular cryptocurrency, Ethereum attracts crypto investors.
- The price has soared over the past few years, and it has the potential to surge even higher.
Bitcoin or Ethereum? Which one should you invest?
Bitcoin and Ethereum both present incredible investment opportunities to cryptocurrency enthusiasts. Bitcoin remains the leading cryptocurrency, and it is expected to continue in that role for the foreseeable future. Ethereum meanwhile has significant use to the cryptocurrency world as its application in the smart contract. As an investor, you can invest in either of them as they offer extraordinary investment opportunities.
Bitcoin and Ethereum are the leading cryptocurrencies in the world. They both offer investment opportunities to crypto enthusiasts. Over the past few years, cryptocurrency investors made a lot of profit from these two cryptos, and they are expected to surge even higher in the future.