ETFsvsBTC
6,103 megtekintés
20 Bejegyzések
Népszerű
Legfrissebb
Spot BTC ETFs. What are the current pros and cons in investing in Spot BTC ETFs. 🤔🤔🤔🤔
Cons> 🤯🤯🤯🤯
1. Crypto ETFs has much higher transaction fees than the transaction fees charged by crypto exchanges.
2. Cost management fees and operation fees.
3. ETFs amplify market movements and can lead to substantial losses if they do not perform as expected.
4. Any regulatory actions against bitcoin could affect the price of spot bitcoin ETFs.
Pros> ☺️☺️☺️☺️
1. Investors to gain exposure to Bitcoin without directly owning the cryptocurrency.
2. ETFs are designed for short-term trading and use complex strategies.
3. Investing in spot bitcoin ETFs could save you the time and costs of exchanging and securing Bitcoins yourself.
4. ETFs buying and selling large blocks of bitcoin based on demand, this could increase liquidity and help stabilize prices over the long term.
$BTC $ETH #BTCETFS #BTCETFS #ETFsvsBTC #ETFs✅ #ETCvsBTC
Cons> 🤯🤯🤯🤯
1. Crypto ETFs has much higher transaction fees than the transaction fees charged by crypto exchanges.
2. Cost management fees and operation fees.
3. ETFs amplify market movements and can lead to substantial losses if they do not perform as expected.
4. Any regulatory actions against bitcoin could affect the price of spot bitcoin ETFs.
Pros> ☺️☺️☺️☺️
1. Investors to gain exposure to Bitcoin without directly owning the cryptocurrency.
2. ETFs are designed for short-term trading and use complex strategies.
3. Investing in spot bitcoin ETFs could save you the time and costs of exchanging and securing Bitcoins yourself.
4. ETFs buying and selling large blocks of bitcoin based on demand, this could increase liquidity and help stabilize prices over the long term.
$BTC $ETH #BTCETFS #BTCETFS #ETFsvsBTC #ETFs✅ #ETCvsBTC
#ETFsvsBTC
In making direct Bitcoin purchase, you actually buy Bitcoin. But buying Bitcoin ETFs, you ain’t actually buy Bitcoin instead you buy exposure to the Bitcoin price. Bitcoin ETFs track Bitcoin price by prediction under centralized control. The largest spot Bitcoin ETFs track price performance of Bitcoin on a nearly 1:1 basis. Yet Bitcoin market is very volatile as it fluctuates over a short time making it hard to track.
Bitcoin is the currency and commodity. Thus there are times you might need access to Bitcoin as a currency to pay for an item online. So if you held Bitcoin ETFs you wouldn’t be able to do that unless you sell it and pay for such item in dollar maybe. In fact the only way you truly own an asset is to posses its cryptographic keys. So if somebody else do possess such keys then the asset is not truly owned by you. For Bitcoin ETFs these cryptographic keys belong to the ETFs issuers and not you. So anything happens in centralized ETFs then it’s the issuers and not you who will decide what to do with it at first.
Bitcoin ETFs purchase Pros are;
Suits traditional investors with nontechnical insights (crypto wallet and blockchain) of crypto market. ETFs are under centralized control hence subjected to regulatory scrutiny as it offers security layer and ensure investor’s peace of mind. Saving time and costs of exchanging and securing Bitcoin by oneself. Making sense for investment goal of long term price performance.
Its Cons are;
Investors own without full controls of underlying Bitcoin. Investors are charged by issuers for management fees or expenses. Not suitable for short term price performance.
Direct Bitcoin purchase Pros are;
Suits investors with concerns about the regulatory or legal aspects of crypto. Crypto asset ownership and full control is higher. Investors can use it as a currency and commodity. The price prediction is much easier. Making sense for short and long term investment goals.
The Cons are;
Suits investors with technical insights of crypto market. Needs investor’s attention to custody security concerns.
In making direct Bitcoin purchase, you actually buy Bitcoin. But buying Bitcoin ETFs, you ain’t actually buy Bitcoin instead you buy exposure to the Bitcoin price. Bitcoin ETFs track Bitcoin price by prediction under centralized control. The largest spot Bitcoin ETFs track price performance of Bitcoin on a nearly 1:1 basis. Yet Bitcoin market is very volatile as it fluctuates over a short time making it hard to track.
Bitcoin is the currency and commodity. Thus there are times you might need access to Bitcoin as a currency to pay for an item online. So if you held Bitcoin ETFs you wouldn’t be able to do that unless you sell it and pay for such item in dollar maybe. In fact the only way you truly own an asset is to posses its cryptographic keys. So if somebody else do possess such keys then the asset is not truly owned by you. For Bitcoin ETFs these cryptographic keys belong to the ETFs issuers and not you. So anything happens in centralized ETFs then it’s the issuers and not you who will decide what to do with it at first.
Bitcoin ETFs purchase Pros are;
Suits traditional investors with nontechnical insights (crypto wallet and blockchain) of crypto market. ETFs are under centralized control hence subjected to regulatory scrutiny as it offers security layer and ensure investor’s peace of mind. Saving time and costs of exchanging and securing Bitcoin by oneself. Making sense for investment goal of long term price performance.
Its Cons are;
Investors own without full controls of underlying Bitcoin. Investors are charged by issuers for management fees or expenses. Not suitable for short term price performance.
Direct Bitcoin purchase Pros are;
Suits investors with concerns about the regulatory or legal aspects of crypto. Crypto asset ownership and full control is higher. Investors can use it as a currency and commodity. The price prediction is much easier. Making sense for short and long term investment goals.
The Cons are;
Suits investors with technical insights of crypto market. Needs investor’s attention to custody security concerns.
LIVE
Binance Square Official
--
#ETFvsBTC: Win up to 500 FDUSD by sharing your insights!
Step into the #ETFvsBTC campaign and you could win up to 500 FDUSD! 🚀 Share your insights into the comparison between Bitcoin ETFs and direct Bitcoin purchases. Evaluate the pros and cons of each option, and provide valuable insights that could help guide new users!
Campaign Period: 2024-05-10 00:00 to 2024-05-15 23:59 (UTC)
To Participate:
Use the hashtag #ETFvsBTC when sharing your insights on Binance Square regarding the advantages and drawbacks of investing in Bitcoin ETFs versus directly purchasing BTC. Ensure your post has a minimum length of 600 words.
Guidelines:
Make certain your shared content is original, filled with insightful information, and based on real incidents. Posts with high engagement lacking original content may be disqualified.
Winner Selection:
Five posts generating the most interaction will each be rewarded with 100 FDUSD.
Terms and Conditions:
This campaign may not be available in your region.Submissions will be evaluated by a panel from the Binance Square team, based on topic relevance, formatting, research quality, factual sourcing, and originality. Content must also align with Campaign Rules.Posts that attempt to boost engagement by exploiting Red Packets and giveaways will be disqualified.The content needs to be posted in Binance Square organically to qualify for the reward.Winners of the week will be notified within 14 days via a push notification under Creator Center > Square Assistant. Entries by Media & Project partners will not be considered for this campaign.The FDUSD token voucher rewards will be distributed within 30 working days after the activity ends. Users may check their rewards via Profile > Rewards Hub. The validity period for the token voucher is set at seven days from the day of distribution. Learn how to redeem a voucher.Illegally bulk registered accounts or sub-accounts shall not be eligible to participate or receive any rewards. Binance reserves the right to disqualify any account acting against the Binance Square Community Guidelines or Terms and Conditions.Binance reserves the right at any time in its sole and absolute discretion to determine and/or amend or vary these terms and conditions without prior notice, including but not limited to canceling, extending, terminating or suspending this activity, the eligibility terms and criteria, the selection and number of winners, and the timing of any act to be done, and all participants shall be bound by these amendments.Binance reserves the right of final interpretation of this activity.Where any discrepancy arises between the translated versions of this announcement and the original English version, the English version of this announcement shall prevail.Additional promotion terms and conditions can be accessed here.
Campaign Period: 2024-05-10 00:00 to 2024-05-15 23:59 (UTC)
To Participate:
Use the hashtag #ETFvsBTC when sharing your insights on Binance Square regarding the advantages and drawbacks of investing in Bitcoin ETFs versus directly purchasing BTC. Ensure your post has a minimum length of 600 words.
Guidelines:
Make certain your shared content is original, filled with insightful information, and based on real incidents. Posts with high engagement lacking original content may be disqualified.
Winner Selection:
Five posts generating the most interaction will each be rewarded with 100 FDUSD.
Terms and Conditions:
This campaign may not be available in your region.Submissions will be evaluated by a panel from the Binance Square team, based on topic relevance, formatting, research quality, factual sourcing, and originality. Content must also align with Campaign Rules.Posts that attempt to boost engagement by exploiting Red Packets and giveaways will be disqualified.The content needs to be posted in Binance Square organically to qualify for the reward.Winners of the week will be notified within 14 days via a push notification under Creator Center > Square Assistant. Entries by Media & Project partners will not be considered for this campaign.The FDUSD token voucher rewards will be distributed within 30 working days after the activity ends. Users may check their rewards via Profile > Rewards Hub. The validity period for the token voucher is set at seven days from the day of distribution. Learn how to redeem a voucher.Illegally bulk registered accounts or sub-accounts shall not be eligible to participate or receive any rewards. Binance reserves the right to disqualify any account acting against the Binance Square Community Guidelines or Terms and Conditions.Binance reserves the right at any time in its sole and absolute discretion to determine and/or amend or vary these terms and conditions without prior notice, including but not limited to canceling, extending, terminating or suspending this activity, the eligibility terms and criteria, the selection and number of winners, and the timing of any act to be done, and all participants shall be bound by these amendments.Binance reserves the right of final interpretation of this activity.Where any discrepancy arises between the translated versions of this announcement and the original English version, the English version of this announcement shall prevail.Additional promotion terms and conditions can be accessed here.
#ETFsvsBTC
Bitcoin ETFs vs. Direct Bitcoin Purchases: Weighing Your Options
For new users considering Bitcoin investment, navigating the two main options can be tricky. Here's a breakdown of Bitcoin ETFs and direct purchases to help you decide:
Direct Bitcoin Purchases
Pros:
Ownership and Control: You directly hold the Bitcoin, offering greater autonomy. You can transfer it freely and potentially benefit from future functionalities like staking.
Potentially Lower Fees: Compared to ETF expense ratios, buying on an exchange might have lower upfront costs.
Cons:
Security Risk: You're responsible for safe storage. Hacking or losing your private keys could result in permanent Bitcoin loss.
Complexity: Understanding wallets, exchanges, and safe storage methods requires research and technical knowledge.
Regulation: Regulations around Bitcoin are still evolving, potentially impacting ownership in the future.
Bitcoin ETFs
Pros:
Convenience: Invest through your existing brokerage account, similar to buying stocks. Easier to manage and integrate into your portfolio.
Regulation: ETFs are regulated, offering potentially more investor protection compared to unregulated exchanges.
Security: You don't handle the underlying Bitcoin directly, reducing the risk of self-storage issues.
Cons:
No Direct Ownership: You don't truly own Bitcoin but rather shares in an ETF that tracks its price.
Fees: Expense ratios associated with the ETF can eat into your returns compared to direct purchases.
Limited Functionality: You might not be able to access some functionalities like staking available with direct ownership.
Valuable Insights for New Users:
Risk Tolerance: Bitcoin is a volatile asset. If comfortable with self-custody and managing risk, direct purchase might be suitable. If you prioritize ease of use and potentially lower risk, ETFs could be a better fit.
Investment Goals: Are you looking for long-term exposure to Bitcoin's price movements or interested in the technical aspects and potential future functionalities? This can guide your decision.
$BTC #Write2Earn
Bitcoin ETFs vs. Direct Bitcoin Purchases: Weighing Your Options
For new users considering Bitcoin investment, navigating the two main options can be tricky. Here's a breakdown of Bitcoin ETFs and direct purchases to help you decide:
Direct Bitcoin Purchases
Pros:
Ownership and Control: You directly hold the Bitcoin, offering greater autonomy. You can transfer it freely and potentially benefit from future functionalities like staking.
Potentially Lower Fees: Compared to ETF expense ratios, buying on an exchange might have lower upfront costs.
Cons:
Security Risk: You're responsible for safe storage. Hacking or losing your private keys could result in permanent Bitcoin loss.
Complexity: Understanding wallets, exchanges, and safe storage methods requires research and technical knowledge.
Regulation: Regulations around Bitcoin are still evolving, potentially impacting ownership in the future.
Bitcoin ETFs
Pros:
Convenience: Invest through your existing brokerage account, similar to buying stocks. Easier to manage and integrate into your portfolio.
Regulation: ETFs are regulated, offering potentially more investor protection compared to unregulated exchanges.
Security: You don't handle the underlying Bitcoin directly, reducing the risk of self-storage issues.
Cons:
No Direct Ownership: You don't truly own Bitcoin but rather shares in an ETF that tracks its price.
Fees: Expense ratios associated with the ETF can eat into your returns compared to direct purchases.
Limited Functionality: You might not be able to access some functionalities like staking available with direct ownership.
Valuable Insights for New Users:
Risk Tolerance: Bitcoin is a volatile asset. If comfortable with self-custody and managing risk, direct purchase might be suitable. If you prioritize ease of use and potentially lower risk, ETFs could be a better fit.
Investment Goals: Are you looking for long-term exposure to Bitcoin's price movements or interested in the technical aspects and potential future functionalities? This can guide your decision.
$BTC #Write2Earn
🚀🚀🚀 USTC and LUNC 🚀🚀
if $USTC get back to being stable at 1 dollar $LUNC will go parabolic 1$-50$ is possible!! But we need to work together 🚀🌕📈💰
#USTC... #lunccomunity
#ETFsvsBTC
if $USTC get back to being stable at 1 dollar $LUNC will go parabolic 1$-50$ is possible!! But we need to work together 🚀🌕📈💰
#USTC... #lunccomunity
#ETFsvsBTC
#ETFsvsBTC
As the cryptocurrency market continues to evolve, investors are faced with a crucial decision: investing in Bitcoin ETFs (Exchange-Traded Funds) or directly purchasing Bitcoin (BTC). Both options have their advantages and disadvantages, which are explored in this post.
Bitcoin ETFs: A Convenient and Regulated Investment Option
Bitcoin ETFs offer a convenient and regulated way to invest in Bitcoin. They are traded on traditional stock exchanges, allowing investors to buy and sell shares through their brokerage accounts. This provides a familiar and comfortable investment experience for those already familiar with the stock market.
Advantages of Bitcoin ETFs:
- Convenience: Easy to buy and sell through traditional brokerage accounts
- Regulatory oversight: ETFs are regulated by government agencies, providing some protection for investors
- Professional management: ETFs are managed by experienced professionals, reducing the burden on individual investors
Disadvantages of Bitcoin ETFs:
- Ownership: Investors don't directly own Bitcoin, but rather shares in the ETF
- Fees: Management fees and other expenses can eat into returns
- Counterparty risk: Investors rely on the ETF provider to manage the fund
Directly Purchasing Bitcoin
Buying Bitcoin directly provides investors with full ownership and control over their assets. This option is ideal for those who want to hold their Bitcoin for the long term or actively participate in the cryptocurrency market.
Comparison
Bitcoin ETFs and directly purchasing Bitcoin cater to different investor preferences and needs. ETFs offer a convenient, regulated, and diversified investment option, while directly purchasing Bitcoin provides ownership and control.
Investors seeking convenience, diversification, and professional management may prefer Bitcoin ETFs. On the other hand, those who value ownership, control, and decentralization may opt for directly purchasing Bitcoin.
#ETFvsBTC
As the cryptocurrency market continues to evolve, investors are faced with a crucial decision: investing in Bitcoin ETFs (Exchange-Traded Funds) or directly purchasing Bitcoin (BTC). Both options have their advantages and disadvantages, which are explored in this post.
Bitcoin ETFs: A Convenient and Regulated Investment Option
Bitcoin ETFs offer a convenient and regulated way to invest in Bitcoin. They are traded on traditional stock exchanges, allowing investors to buy and sell shares through their brokerage accounts. This provides a familiar and comfortable investment experience for those already familiar with the stock market.
Advantages of Bitcoin ETFs:
- Convenience: Easy to buy and sell through traditional brokerage accounts
- Regulatory oversight: ETFs are regulated by government agencies, providing some protection for investors
- Professional management: ETFs are managed by experienced professionals, reducing the burden on individual investors
Disadvantages of Bitcoin ETFs:
- Ownership: Investors don't directly own Bitcoin, but rather shares in the ETF
- Fees: Management fees and other expenses can eat into returns
- Counterparty risk: Investors rely on the ETF provider to manage the fund
Directly Purchasing Bitcoin
Buying Bitcoin directly provides investors with full ownership and control over their assets. This option is ideal for those who want to hold their Bitcoin for the long term or actively participate in the cryptocurrency market.
Comparison
Bitcoin ETFs and directly purchasing Bitcoin cater to different investor preferences and needs. ETFs offer a convenient, regulated, and diversified investment option, while directly purchasing Bitcoin provides ownership and control.
Investors seeking convenience, diversification, and professional management may prefer Bitcoin ETFs. On the other hand, those who value ownership, control, and decentralization may opt for directly purchasing Bitcoin.
#ETFvsBTC
If you Have the opportunity will you chose to invest in BTC ETF or will you directly invest in BTC?
A bitcoin exchange-traded fund (ETF) is a financial product that allows investors to gain exposure to the price movements of bitcoin without actually holding the asset itself. Shares of a bitcoin ETF are traded on traditional stock exchanges, making it easier for investors to participate in the cryptocurrency market.
When ETF shares are subsequently bought or sold, the price fluctuates like any other fund, but there is no direct impact on bitcoin. Shares can trade at a premium or discount to the net asset value when the correlation becomes decoupled.
However,
If long-term price performance is your only investment goal, then the new Bitcoin ETFs make a lot of sense. However, you could prefer direct-asset ownership of Bitcoin if you are concerned about the regulatory or legal aspects of crypto.
What is the advantage of a bitcoin ETF?
Investing in a Bitcoin ETF provides leverage to the price of Bitcoin without having to learn about how Bitcoin works, having to sign up for a cryptocurrency exchange, and taking on the risks of owning Bitcoin directly.
#ETFvsBTC
#BlackRock
#BTC
#ETFsvsBTC
A bitcoin exchange-traded fund (ETF) is a financial product that allows investors to gain exposure to the price movements of bitcoin without actually holding the asset itself. Shares of a bitcoin ETF are traded on traditional stock exchanges, making it easier for investors to participate in the cryptocurrency market.
When ETF shares are subsequently bought or sold, the price fluctuates like any other fund, but there is no direct impact on bitcoin. Shares can trade at a premium or discount to the net asset value when the correlation becomes decoupled.
However,
If long-term price performance is your only investment goal, then the new Bitcoin ETFs make a lot of sense. However, you could prefer direct-asset ownership of Bitcoin if you are concerned about the regulatory or legal aspects of crypto.
What is the advantage of a bitcoin ETF?
Investing in a Bitcoin ETF provides leverage to the price of Bitcoin without having to learn about how Bitcoin works, having to sign up for a cryptocurrency exchange, and taking on the risks of owning Bitcoin directly.
#ETFvsBTC
#BlackRock
#BTC
#ETFsvsBTC
What is a Bitcoin ETF and Why Does It Matter?
Bitcoin ETF pools investor money to purchase Bitcoin directly. A Bitcoin ETF is managed by an investment firm and listed on a traditional stock exchange.
WHAT IS DIRECT INVESTMENT IN BITCOIN?
Direct Investment in Bitcoin simply means Trading directly through a crypto exchange such as Binance. This pattern as I have observed can be complicated for some investors or newbies in the crypto platforms. Now with the introduction of ETFs tied to Bitcoin, the process of investing could become much simpler for the novice.
WHAT IT ALL MEANS!
Investors will now be able to benefit from the added protections of the ETF structure and get Bitcoin exposure as part of a diversified portfolio with less volatility. However I feel this could take away the decentralized privilege that comes with personal investment in Crypto.
Also most of these big commercial investors might rip off some ignorant newbies and enmass wealth to their disadvantage which is inimical to the tenets of the crypto currency ecosystem and industry.
MY OPINION!!!
I will also go for personal Bitcoin Investments against any form of institunalized surrogate in whichever form such as ETF. As an investor be careful who you handover your hard earned funds.
Thank You For Reading!!!
Please if you find this article useful, kindly share to others, FOLLOW ME For more insight, Like, and drop a comment below let's reason together.
THANK You!!!
#ETFvsBTC #ETFvsBTCvsBTC #ETFsvsBTC
#BinanceWeb3Wallet并立即检查
#BinanceExplorers
$BTC $BNB $SOL
Bitcoin ETF pools investor money to purchase Bitcoin directly. A Bitcoin ETF is managed by an investment firm and listed on a traditional stock exchange.
WHAT IS DIRECT INVESTMENT IN BITCOIN?
Direct Investment in Bitcoin simply means Trading directly through a crypto exchange such as Binance. This pattern as I have observed can be complicated for some investors or newbies in the crypto platforms. Now with the introduction of ETFs tied to Bitcoin, the process of investing could become much simpler for the novice.
WHAT IT ALL MEANS!
Investors will now be able to benefit from the added protections of the ETF structure and get Bitcoin exposure as part of a diversified portfolio with less volatility. However I feel this could take away the decentralized privilege that comes with personal investment in Crypto.
Also most of these big commercial investors might rip off some ignorant newbies and enmass wealth to their disadvantage which is inimical to the tenets of the crypto currency ecosystem and industry.
MY OPINION!!!
I will also go for personal Bitcoin Investments against any form of institunalized surrogate in whichever form such as ETF. As an investor be careful who you handover your hard earned funds.
Thank You For Reading!!!
Please if you find this article useful, kindly share to others, FOLLOW ME For more insight, Like, and drop a comment below let's reason together.
THANK You!!!
#ETFvsBTC #ETFvsBTCvsBTC #ETFsvsBTC
#BinanceWeb3Wallet并立即检查
#BinanceExplorers
$BTC $BNB $SOL
BTC Bullish on 3 Day Time Frame But I think After a little Pump BTC Bearish Trend Will Start Soon...So Keep Watching And do not take any Trade.
#ETFsvsBTC #CMEBitcoinSpotTrading #BinanceLaunchpool #Megadrop
#ETFsvsBTC #CMEBitcoinSpotTrading #BinanceLaunchpool #Megadrop
In the next two days, Bitcoin's price is expected to remain relatively stable with slight fluctuations:🖖
- On June 4, 2024, Bitcoin's price is forecasted to range between $61,398 and $70,641, with an average price around $66,020.
- On June 5, 2024, the expected range is $61,358 to $70,595, with an average price approximately $65,976.
Overall, the trend is slightly positive but with minor variations within the specified range. Cryptocurrency prices can be highly volatile and influenced by various market factors.✔️✔️✔️
#BTC☀ #ETHETFsApproved #altcoins #ETFsvsBTC #new
- On June 4, 2024, Bitcoin's price is forecasted to range between $61,398 and $70,641, with an average price around $66,020.
- On June 5, 2024, the expected range is $61,358 to $70,595, with an average price approximately $65,976.
Overall, the trend is slightly positive but with minor variations within the specified range. Cryptocurrency prices can be highly volatile and influenced by various market factors.✔️✔️✔️
#BTC☀ #ETHETFsApproved #altcoins #ETFsvsBTC #new
Is Solana a No-Brainer Buy After the Bitcoin Halving? 📌🚨
Bitcoin (CRYPTO: BTC) has gone through four "halvings," which halved the rewards for mining the cryptocurrency, every four years since 2012. The bulls consider those events to be major catalysts for Bitcoin because they tighten up its supply.
Bitcoin's price surged 109% in the 12 months leading up to its latest halving on April 19. That rally, which was amplified by hopes for lower interest rates and the approvals of the first spot price Bitcoin ETFs this January, also lifted other cryptocurrencies.
Yet Bitcoin's price has dipped about 2% since that fateful day. That pullback suggests that a lot of investors bought Bitcoin ahead of its halving, but the lack of additional catalysts might be preventing new investors from jumping in.
So instead of focusing too much on Bitcoin right now, investors should pay more attention to other smaller cryptocurrencies that have been generating bigger gains. One of those tokens is Solana (CRYPTO: SOL), which soared 472% in the 12 months leading up to Bitcoin's halving and advanced another 8% in the following months. Is it a no-brainer buy right now?
The difference between Bitcoin and Solana
Bitcoin is mined with an older and more energy-intensive proof of work (PoW) method, while Ether (CRYPTO: ETH), Solana, and other, newer cryptocurrencies are mined with the faster and more energy-efficient proof of stake (PoS) method.
PoS blockchains support smart contracts, which can be used to develop decentralized apps (dApps), games, non-fungible tokens (NFTs), and other crypto assets. PoS tokens can also be "staked" (locked up) on the blockchain for a period of time to earn rewards. PoW blockchains are only natively used to directly mine cryptocurrencies.
Simply put, PoW tokens are valued by their scarcity, while PoS tokens are valued by the growth of their ecosystems. That's why crypto investors generally favor the PoS blockchains, which have the highest transaction speeds and the lowest fees.
#ETFsvsBTC #EFT #Solana_Blockchain
$BTC $SOL
Bitcoin (CRYPTO: BTC) has gone through four "halvings," which halved the rewards for mining the cryptocurrency, every four years since 2012. The bulls consider those events to be major catalysts for Bitcoin because they tighten up its supply.
Bitcoin's price surged 109% in the 12 months leading up to its latest halving on April 19. That rally, which was amplified by hopes for lower interest rates and the approvals of the first spot price Bitcoin ETFs this January, also lifted other cryptocurrencies.
Yet Bitcoin's price has dipped about 2% since that fateful day. That pullback suggests that a lot of investors bought Bitcoin ahead of its halving, but the lack of additional catalysts might be preventing new investors from jumping in.
So instead of focusing too much on Bitcoin right now, investors should pay more attention to other smaller cryptocurrencies that have been generating bigger gains. One of those tokens is Solana (CRYPTO: SOL), which soared 472% in the 12 months leading up to Bitcoin's halving and advanced another 8% in the following months. Is it a no-brainer buy right now?
The difference between Bitcoin and Solana
Bitcoin is mined with an older and more energy-intensive proof of work (PoW) method, while Ether (CRYPTO: ETH), Solana, and other, newer cryptocurrencies are mined with the faster and more energy-efficient proof of stake (PoS) method.
PoS blockchains support smart contracts, which can be used to develop decentralized apps (dApps), games, non-fungible tokens (NFTs), and other crypto assets. PoS tokens can also be "staked" (locked up) on the blockchain for a period of time to earn rewards. PoW blockchains are only natively used to directly mine cryptocurrencies.
Simply put, PoW tokens are valued by their scarcity, while PoS tokens are valued by the growth of their ecosystems. That's why crypto investors generally favor the PoS blockchains, which have the highest transaction speeds and the lowest fees.
#ETFsvsBTC #EFT #Solana_Blockchain
$BTC $SOL
