Ethereum and Bitcoin account for at least 65% of the total cryptocurrency market capitalization. While Bitcoin, the first and most successful cryptocurrency, reached a market capitalization of $ 1 trillion, Ethereum ranks second, capturing more than $ 250 billion in market capitalization.

Investors and the community of crypto enthusiasts are opposed to them, given their similarities and differences. Bitcoin vs Ethereum, should investors choose one over the other or both? Let’s keep things simple and start by establishing a few facts.

What is Bitcoin?

Bitcoin is the leading cryptocurrency in terms of market capitalization and attention from retail and institutional investors. Founded in 2009 by a pseudonymous entity called Satoshi Nakamoto, it has built a reputation as digital gold in recent years.

Bitcoin is a form of digital currency that is not issued by any central government. Instead, it is decentralized, secure, and your transaction is transmitted in a crypto ledger that we have learned to call a blockchain.

While some national governments and their regulators continue to debate whether Bitcoin is a currency or an asset (primarily on the subject of taxes and other forms of regulation), public, institutional, and private investors continued to vote for confidence in Bitcoin. . These include Microstrategy, Tesla, Square, and Grayscale.

Beyond the coin side of Bitcoin, the developer community has found that it can extend the blockchain for other purposes. This brings us to the second largest crypto, Ethereum.

What is Ethereum?

Ethereum was created in 2015 by Vitalik Buterin. Beyond Bitcoin’s digital payment feature, Ethereum enables decentralized applications powered by smart contracts. Programmers could take advantage of the network and host dapps that serve a variety of purposes, such as lending and borrowing (what we see in DeFi today), art and digital product tokenization (NFT), protecting public files, and much more. Ethereum powers the decentralized financial sector where investors (individuals and companies) invest more than $ 80 billion in various smart contracts.

Ethereum has its native currency called Ether. Ether is used to pay for network transaction fees. Whether as an application developer coding smart contracts, every transaction you make on the network requires you to pay an Ether fee for the transaction to be confirmed by validators on the network. Technically, this is also called a gas tax, which varies depending on network congestion or the complexity of the smart contract transaction.

Traders or investors often present indicators of why Bitcoin is a better option than Ethereum or vice versa. Even with their similarities, they are still very different in many respects.

Differences between Bitcoin and Ethereum

Bitcoin, in particular with its increase in value and the slowness of the transaction confirmation times (around ten minutes), is presented as a better store of value than the means of payment. It sounds like the way gold is used as a form of investment – although it can technically be exchanged for goods based on its value, it would not be practical to use it that way. Instead, investors in gold cling to the metal believing that its value will increase, unlike fiat currencies that lose value over time due to inflation.

Ethereum, on the other hand, can add up to 30 transactions per second, which makes it faster than the Bitcoin network and more convenient as a payment method.

Fun fact: Ethereum 2.0 can facilitate up to 100,000 transactions per second as soon as it merges with Ethereum 1.0.

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Institutional investors are widely adopting Bitcoin due to its relative price stability compared to other cryptocurrencies such as Ethereum. I mentioned earlier that Microstrategy, Tesla, Square, etc. have added Bitcoin to their balance sheets. A large market cap introduces some form of stability to Bitcoin, making it more attractive to large companies and high-net-worth individuals.

Finally, the programmability of the Ethereum network is primarily responsible for the fascinating exploration of new frontiers around the borders of decentralized finance that we see today. DeFi has surpassed $ 100 billion as an industry, and it does not appear

And it looks like we haven’t even scratched the surface The Chainlink co-founder and CEO estimates that the DeFi industry could be worth more than $ 500 billion in the next few years. And while non-fungible tokens (NFTs) are gaining widespread attention, the tokenization of real-world assets is another frontier that has yet to be fully explored. Ethereum is definitely leading the charge here.

Should you buy Bitcoin or Ethereum?

There is no single answer to this question. As an investor looking to invest in Bitcoin or Ethereum, it all comes down to your risk profile. Since the 2020 bull run does not lose momentum in 2021; there are some outlandish predictions about the price of Bitcoin and Ethereum; not to mention other cryptocurrencies such as CHSB, Chainlink, Cardano, Aave, etc.

Experts like Messari Crypto’s Ryan Watkin believe that the price of Bitcoin could rise further; reaching between $ 100,000 and $ 150,000 before the end of the year. This will be a 2.4-fold increase from its current price of $ 62,000.

When it comes to Ethereum, many experts like Watkins and others believe that Ethereum could hit as high as $ 10,000 by the end of the year. According to this prediction, the value of Ethereum would be four times higher. Therefore, experts agree that the two main cryptocurrencies have room to grow.

In particular, the world of cryptocurrency investing shouldn’t only be concerned with Bitcoin versus Ethereum. As a cryptocurrency trader and investor, there are other alternatives that should also be considered. After all, a balanced cryptocurrency investment portfolio must include a mix of BTC, ETH, and other altcoins.

Related Article: Bitcoin: 2021 prediction at $ 100k Prepare for the rise in (BTC)

Taking other cryptocurrencies into account; a look at SwissBorg shows that the CHSB token has appreciated more than 7650% in the last 12 months; from less than $ 0.02 to $ 1.53 in March 2021. This shows how crazy growth can be. the alts; and it means investors who are only fixated on Bitcoin or Ethereum could get lost. And that’s not all. SwissBorg periodically performs Protect & Burns, a deflationary practice by the SwissBorg team on token pricing. With Protect & Burn, the team rewards long-term CHSB holders by placing redemption; and burn orders only when the token price drops. After conducting a series of Protect & Burns; the team found that the price of CHSB increased after 77% of burns, demonstrating the benefits of this approach.

And that just puts our focus on CHSB. There are many other high-potential cryptocurrencies, including the 14 listed on the SwissBorg app. Therefore; an investor or trader looking to maximize their profits in the crypto space does not need to focus solely on Bitcoin versus Ethereum. Other cryptocurrencies can even outperform these two in terms of price appreciation.

The risks of crypto investment

It is the old rule of investing to never invest more than you are willing to lose. Cryptocurrencies can be very volatile and prices fluctuate in a single day. Even Bitcoin, which is one of the most “stable” cryptocurrencies (this does not include stablecoins pegged to fiat currencies), is not immune to extreme volatility.

Not long ago, Bitcoin lost around 50% of its price in the infamous COVID global market crash on Black Tuesday. Other alternatives may even be more conspicuous. Some cryptocurrencies are emptied and never recovered. Therefore, it is imperative to understand these risks before venturing out.

Fun fact: Bitcoin’s price rose from $ 7,600 to $ 3,867.09 on March 12, 2020. It has been dubbed the Black Tuesday of the global market crash.

However, these volatility risks aside, cryptocurrencies are becoming a mainstay of investment and have continued to shape the frontier of digital finance. Many other cryptocurrencies besides Bitcoin and Ethereum will play an important role during this time.

Related Article: Bitcoin: 2021 prediction at $ 100k Prepare for the rise in (BTC)