Bitcoin versus Ethereum- Which Cryptocurrency is the Best?

(MENAFN- CCP Marketing)

Are you wondering whether to invest in Bitcoin or Ethereum? If yes, here’s what you should know about Bitcoin versus Ethereum. 

Ethereum is the second-largest virtual currency after Bitcoin. Consequently, many crypto investors wonder whether to buy Bitcoin or Ether. Over the years, virtual currencies have performed better than most conventional assets. Also, cryptocurrency enthusiasts have rallied behind virtual currencies and maintained hype around them. Today, many people believe that digital currencies are undoubtedly the next big thing in the financial sector.

Bitcoin emerged in 2009. At that time, Bitcoin’s price was below one cent. But the price of this virtual currency has increased over the years, despite its volatility. This year, Bitcoin hits its all-time high value of more than $60,000.

On the other hand, Ethereum emerged in 2015, with a single token selling below $3. However, this value increased to over $1,400 as of 2018. Today, people trade this cryptocurrency on platforms like the oilprofit app for around $3,800.

While the world’s most significant virtual currencies lead in market capitalizations, they have differences. And this makes it hard for investors to choose between Bitcoin and Ethereum.

Bitcoin’s Core Characteristics

 Bitcoin has remained the top cryptocurrency for years, with a market capitalization exceeding $1 trillion, the largest. All cryptocurrencies have a market capitalization of around $2.5 trillion. Ethereum, which follows Bitcoin, has approximately $450 billion market capitalization. Here are the core traits of Bitcoin.

• Limited supply: The world’s Bitcoin supply will never exceed 21 million Bitcoins. And the limited supply prompts many investors to compare Bitcoin to gold. But unlike gold, Bitcoin can’t have new reserves for miners to discover. Also, miners have produced almost 90% of the total amount.
• Relative simplicity, stability, and acceptance: Bitcoin’s decentralization means it’s beyond the central bank’s grasp. Its pre-determined maximum supply makes it an attractive concept that many people resonate with globally. Ideally, many people see Bitcoin as a scarce digital asset and value storage.

Bitcoin attracts investors: Bitcoin has grown into a widely-accepted digital asset for investors. Both institutional and individual investors have a growing appetite for this cryptocurrency. And this interest will increase as Bitcoin’s adoption grows.

The Bitcoin halving process slows down the rate at which miners create new tokens. And this increases Bitcoin’s value over time.

Ethereum’s Core Traits

Investors should understand Ethereum’s core characteristics before deciding to invest in it. Here’s how this virtual currency differs from Bitcoin.

• Primary goal: Ethereum operates as a decentralized network where users can develop applications. The Ethereum network provides the basis over which people get tokens. Essentially, Ethereum is an infrastructure or a blockchain in its early stages, but it can change technology and finance.
• Room for development: Ethereum has more activity around it because only the developers’ ingenuity can limit its utility. Ether is the cryptocurrency that facilitates Ethereum transactions. However, people refer to it as Ethereum. Nevertheless, Ethereum-related repositories are 263 in the developer platform Github, while Bitcoin has only four.
• Blocks creation: Ethereum gives users with the most extensive stakes ownership the right to create new tokens. That’s not the case with Bitcoin, where miners with the highest computing power enjoy this privilege.

So, Which Cryptocurrency is the Best?

The investor’s risk profile determines whether Bitcoin or Ethereum is the best investment. As the world accepts cryptocurrencies more, Bitcoin and Ethereum will grow and gain more uses. Nevertheless, Bitcoin is currently more stable and mainstream than Ethereum. But most crypto experts say Bitcoin’s popularity makes it a worthwhile investment. On the other hand, Ethereum’s high risk could bring higher rewards. Nevertheless, both cryptocurrencies are digital assets worth considering for investors with an increased appetite for risks due to their high volatility.

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