Investing in Bitcoin or Ethereum: Which is Better?
What is better for investing: Bitcoin or Ethereum? Understand the main considerations and differences between the two largest cryptocurrencies in the sector
What is Bitcoin (BTC)?
Bitcoin was launched in 2009 by the still-anonymous developer Satoshi Nakamoto. Bitcoin brought together a series of previous technologies and academic works to create the first functional, decentralized cryptocurrency, a milestone in the history of technology and money.
Bitcoin emerged with a clear value proposition: to become a native internet money, while Ethereum was originally envisioned as a type of “internet computer” capable of executing more complex smart contracts through its base layer.
What is Ethereum (ETH)?
Ethereum, in turn, was created in July 2015, after almost two years of idealization by programmer Vitalik Buterin and other prominent developers.
Ether (ETH), the network's native token, is a type of 'fuel' used to pay for the various services present on the Blockchain network. For example, transferring stablecoins, exchanging crypto assets on decentralized exchanges or registering NFTs and tokens on the network.
Investing in Bitcoin or Ethereum: Which is Better?
What is better for investing: Bitcoin or Ethereum? Understand the main considerations and differences between the two largest cryptocurrencies in the sector
Bitcoin (BTC) and Ethereum (ETH) are by far the largest cryptocurrencies on the market. Both assets have grown exponentially in value over the past few years, making them some of the best investments of our time.
But after all, what is better for investments: Bitcoin or Ethereum? Understand the main considerations, differences and perspectives for the two largest cryptocurrencies in the sector.
What is Bitcoin (BTC)?
Bitcoin was launched in 2009 by the still-anonymous developer Satoshi Nakamoto. Bitcoin brought together a series of previous technologies and academic works to create the first functional, decentralized cryptocurrency, a milestone in the history of technology and money.
Bitcoin emerged with a clear value proposition: to become a native internet money, while Ethereum was originally envisioned as a type of “internet computer” capable of executing more complex smart contracts through its base layer.
What is Ethereum (ETH)?
Ethereum, in turn, was created in July 2015, after almost two years of idealization by programmer Vitalik Buterin and other prominent developers.
Ether (ETH), the network's native token, is a type of 'fuel' used to pay for the various services present on the Blockchain network. For example, transferring stablecoins, exchanging crypto assets on decentralized exchanges or registering NFTs and tokens on the network.
Investing in Bitcoin or Ethereum: Which is Better?
Investing in Bitcoin or Ethereum: Which is Better?
What is better for investing: Bitcoin or Ethereum? Understand the main considerations and differences between the two largest cryptocurrencies in the sector
Black Friday Coinext Crypto Friday
Bitcoin (BTC) and Ethereum (ETH) are by far the largest cryptocurrencies on the market. Both assets have grown exponentially in value over the past few years, making them some of the best investments of our time.
But after all, what is better for investments: Bitcoin or Ethereum? Understand the main considerations, differences and perspectives for the two largest cryptocurrencies in the sector.
What is Bitcoin (BTC)?
Bitcoin was launched in 2009 by the still-anonymous developer Satoshi Nakamoto. Bitcoin brought together a series of previous technologies and academic works to create the first functional, decentralized cryptocurrency, a milestone in the history of technology and money.
Bitcoin emerged with a clear value proposition: to become a native internet money, while Ethereum was originally envisioned as a type of “internet computer” capable of executing more complex smart contracts through its base layer.
What is Ethereum (ETH)?
Ethereum, in turn, was created in July 2015, after almost two years of idealization by programmer Vitalik Buterin and other prominent developers.
Ether (ETH), the network's native token, is a type of 'fuel' used to pay for the various services present on the Blockchain network. For example, transferring stablecoins, exchanging crypto assets on decentralized exchanges or registering NFTs and tokens on the network.
What are the technologies of Bitcoin and Ethereum?
Bitcoin and Ethereum initially had very similar technology and operating methods. Both networks were based on the Proof of Work (PoW) consensus mechanism and had several concepts in common, such as the use of strong cryptography, public and private keys, and similar use cases.
However, the networks have been different over time, as they have been implemented. Ethereum, over the years, has undergone several changes in its operating rules and monetary policy. The most significant change was certainly the switch to the Proof of Stake (PoS) consensus algorithm, which replaces miners with stakers, who deposit their coins for the chance to include blocks in the network.
Bitcoin, on the other hand, remains largely the same, so its updates and implementations are done through soft forks, which are backwards compatible with previous versions of the network. In addition, many of the new features added to Bitcoin come through second-layer networks, such as the Lightning Network.
Bitcoin vs. Ethereum Price Analysis
Both Bitcoin and Ethereum have seen exponential returns over the past few years. Check out a comparison of the performance of the two crypto assets below.
Bitcoin and Ethereum in the last 5 years
Bitcoin has seen a rally of around 1600% over the past 5 years, from the 2018 bear market to this recent market recovery in 2023, as can be seen in the image below.
Ether, on the other hand, managed to outperform Bitcoin, posting a return of around 3,370%. Much of this movement can be attributed to the massive drop seen in the 2018 bear market. However, with the arrival of the 2021 bull market, ETH has recovered phenomenally.
Bitcoin e Ethereum em 2024
The year 2024 will be marked by the fourth halving in the history of Bitcoin, an event that reduces the issuance of new coins by half with each block. Historically, this event has been a catalyst for the start of a new Bitcoin bull market.
In turn, a bullish movement in Bitcoin has historically caused increases in the entire cryptocurrency market, which still behaves in a highly correlated manner. Therefore, if history repeats itself, the price of BTC and ETH should reach new historical levels in 2024 or 2025.
However, in the financial market, past returns are no guarantee of future returns. Because of this, price movements are uncertain, despite the great optimism on the part of analysts and institutions.
While Bitcoin will undergo further halving, ETH has become a deflationary asset through the token burning mechanism since The Merge, which introduced the Proof of Stake mechanism into the protocol. This new monetary policy could have a significant impact on an eventual bull market in crypto assets.
Which is better to invest in: Bitcoin or Ethereum?
Now you may be wondering, which is the best cryptocurrency to invest in: Bitcoin or Ethereum? In general, both Bitcoin and Ethereum are highly liquid assets, traded worldwide with large daily volumes. Both networks are adopted by large institutional players and have their own demand.
There is no definitive answer as to which asset is better, as this is subjective and depends on the investor's strategy and technological needs. It is up to the investor to evaluate the importance of holding BTC or ETH in their portfolio, as well as the percentage of allocation to the portfolio.
Can Ethereum Overtake Bitcoin?
Yes, Ethereum could overtake Bitcoin in market cap. Since the price is a result of the trading decisions of millions of buyers and sellers in the open market, ETH could overtake BTC in market cap.