Bitcoin and Ethereum – Which is The Best?

Bitcoin and Ethereum, These both are the two popular coins in crypto world but to choose among them is essential for healthy investments. As investors are readily attracted towards cryptocurrencies and Bitcoin (BTC) is first in asset section being the best performing investment in last decade, various other digital currencies have also made their place in crypto world. 

Bitcoin being traded in 2009 for the very first time. One could also purchase new digital token for less than 1 cent. It’s value also increased with higher volatility over years as it reached around $69000 in November 2021. The Ether coin (ETH) of Ethereum network had debuted in 2015 at a low of $3 and by November 2021 it had reached to $4,891, which was highest as of now.

Both Bitcoin and Ethereum were below their peaks but were simultaneously above the level which they were few years back, trading on around $43,000 and $3,300. On the basis of such a performance, Ethereum has shooted up in price for around 1100 times lesser than seven years. With contrast to Apple Inc. (AAPL) which is archetype of marvellous stock and is also the best performer of equity.

Both these cryptocurrencies as Bitcoin and Ethereum are the two largest cryptocurrencies in terms of market capitalisation, but the similar things end there. As these Bitcoin and Ethereum are very different from each other and are developed for different issues as well as with different dynamics. Apart from all these facts, investors are interested in knowing about which could perform better in investments: Bitcoin or Ethereum? Therefore from the following you could acknowledge a clear glimpse of each cryptocurrency to invest-in accordingly.

Bitcoin Facts

Bitcoin as developed by Satoshi Nakamoto in 2009 had been one of the valuable cryptocurrencies, it’s been represented with the aid of BTC ticker. At present, the market cap is around $800 billion or around 40% of $2 trillion asset class. When compared, Ethereum is liable for a less than 20% of asset class, also having a market cap of above $380 billion. As of today, no coin is holding a value of $100 billion.

Apart from this, it’s uneven length of trading history and brand name accounts to Bitcoin’s attracting feature, scarcity and to this, 21 million BTC could only exist. Also, above 18.9 million or 90% are mined already and exist till present. But still certain facts are to beholden by the investor for choosing appropriate currency amongst Bitcoin and Ethereum:

Bitcoin could be differentiated from Ethereum and various other coins on perhaps one basic standard and that is, its hard for quantifying and a vital feature as well. Cause of the belief system of millions, Bitcoin could be seen as gold standard, according to James Wo, founder and CEO of DFG, which is a global blockchain and investment firm of cryptocurrency as well.

Also Bitcoin had been the first cryptocurrency which CME Group Inc. (CME) had offered for the future contracts, thereby allowing investors for waving on the prices at particular dates in near future. As the ProShares Bitcoin Strategy ETF (BITO) in October was launched by becoming the very first Securities and Exchange Commission accepted, the crypto based exchange traded fund.

Yet prolonged investments in BTC could not only benefited by its investors but, consumers could also benefit by earning Bitcoin with services as Lolli (first Bitcoin rewards application allowing people for earning BTC when doing online shopping).Getting into the detail of Lolli, it’s having above 1000 vendors, involving Nike Inc. (NKE), Best Buy Co. Inc. (BBBY), Priceline Groupon Inc. (GRPN), and Booking Holdings Inc’s (BKNG). Various Bitcoin credit card rewards from likes of Visa Inc. (V) and Mastercard Inc. are also there. 

Bitcoin’s permanence is the fact that a lot of multibillion dollar companies have initiated buying and holding of Bitcoins on their balance sheets. To this, the company MicroStrategy Inc. (MSTR) is the largest corporate BTC holder, but in 2021, the popular companies as Block Inc. (SQ)- earlier recognised as square and Tesla Inc. (TSLA) purchased Bitcoin as an alternative to cash. Also no large companies were involved in purchase of Ethereum for maximising returns on cash and with S&P 500 companies were sitting on a hike of $2.7 trillion in cash, the increased acceptance of holding Bitcoin on balance sheets, is having the power to become a massive catalyst for BTC.

Secondary Fact Responsible For Differentiation

EI Salvador, who is responsible for making Bitcoin an official currency in country, is also holding BTC on its balance sheet which makes it an exception on international stage in concern with Bitcoin. Various nations are having major concern over how they are going to disrupt their own currencies and even going to undergo the system of taxation.

For example, China which was holding maximum of its population in cryptocurrency, had banned mining and cryptocurrencies dealing both- not only BTC in 2021. Now the country is into trying an advance digital version of its own currency (the yuan).

Another major concern revolving Bitcoin, is basically concerned with its heavy use of energy. Amongst various different cryptocurrencies, Bitcoin consumes lot of energy as around 0.5% of entire electricity consumption round the globe. This is actually above various countries and is seven times ahead of Alphabet Inc.’s (GOOG, GOOGL) which Google uses in its global operations, as per The New York Times.

To this, according to Barooah the shift away of Chinese Bitcoin mining has provided aid for moving the electricity sources of mining operations away from coal to natural gas, this is much effective and safe, hence better chances of improvement.

Facts About Ethereum

Bitcoin and Ethereum both are popular and valuable assets of cryptocurrency but to choose among them, one should have the entire knowledge on Bitcoin and Ethereum of them equally, where Ethereum is the network’s native cryptocurrency being referred to as Ether. This is having the following characteristics:

• Enhanced Flexibility: Comparison of Bitcoin and Ethereum as per to few experts is doing comparison of electricity with gold. Bitcoin, as per Barooah is more like a commodity as gold. For instance, it is a medium of exchange than Ethereum, where Ethereum is infrastructure for individuals so as to build apps on it. There is no utility for Bitcoin on top of all this rather than being storehouse of value. Whereas, Ethereum network tends to bring limitless possibilities, in a way that other cryptocurrencies are issued on the same. Trading of NFTs is done easily on this network and on entire field of decentralised finance and its ability of creating smart contracts.
  
• Higher Gas Fees: The area where ETH is behind BTC, is cause of the transaction fees. The transactions based on Ethereum are much faster than the Bitcoin transactions and there is steep cost with convenience being termed as gas fees. Such gas fees which compensate the participants so as to validate transactions is unique. To this, according to Adrian Kolody, co-founder of Domination Finance had also mentioned that, heavy network usage on Ethereum has become one of the reasons for inflated gas fees.
  
• Confirm Transition to ETH 2.0, Although At Slow Pace: The gas fee issue is major block for readily adopting and using Ethereum, although being the most popular and used networks round the globe. Being an alternate to Ethereum, Solana and Avalanche networks are there for copying Ethereum with a lower fee. Ethereum inorder to resolve its energy issues, is trying to move from costly and energy intensive proof-of-work protocol to proof-of- stake one. The very many updates on Ethereum have been termed as ETH 2.0. Kolody is of the saying in this concern that Ethereum would render a real-life payment solution and when making comparison between Bitcoin and Ethereum, KOLODY speaks in favour of ETH as a more solid investment for long term. Where BTC comes under more of scrutiny for having lack of utility and in case ETH 2.0 tends to deliver as said then there won’t be any comparison argument left.

Crux of Ethereum vs. Bitcoin

Bitcoin and Ethereum : BTC is the first cryptocurrency, similarly Ethereum also comes under the same platform of being the first currency for being readily adopted and having rapid growth, with being the emerging area of DeFi. Also Ethereum has been the default blockchain and market leader as well. It has highest market share in rapidly growing NFT also.

But when we talk of the comparison between the two then, Bitcoin is still at its best, where Ethereum is having competitors gaining traction and momentum cause of its efficiency and easy to use systems.
Essentially both the Bitcoin and Ethereum are still the must-own token for a newer crypto investor, still the more dynamic ETH arrives, the more it results in head to head comparison for investors in long run.