BITCOIN VS ETHEREUM. CAN ETH SURPASS BTC?
BTC and ETH are clear leaders of Crypto Market. Combined they cover over 75 percent of the whole market, with value of almost 2.5 trln dollars.
BTC was the game changer. Being first crypto and alternative to fiat currencies, it enabled blockchain technology. If put it simple it's like Apple (iPhone) of cryptos.
Unlike fiat currencies, Bitcoin has a hard cap of 21 million BTC that can not be exceeded. This cap limits Bitcoin supply and will end its inflation when that cap is reached, characteristics that Bitcoin investors believe will make the crypto an effective store of value in the long term. Bitcoin's network operates on a PoW verification system.
On the other hand, ETH is based on blockchain platforms created to support smart contracts and secure financial transactions. It's more like Samsung. It's cheaper and faster. That's why lost of Dapps and Defi's integrated with the platform.
In 2022, the Ethereum network transitioned from an energy-intensive PoW verification system to a proof-of-stake, or PoS, model. Instead of miners competing to solve mathematical puzzles, Ethereum's PoS system selects validators via an algorithm. To qualify as a potential validator, traders must "stake" some of their cryptocurrency as collateral. The more crypto they stake, the higher the likelihood they will be chosen to validate a block and receive a reward.
If you look back over the past five years, Bitcoin prices are up about 12x, while Ether prices are up more than 20x.
Although Ether has been the better investment over that time period, that trend has reversed in the past year on growing enthusiasm surrounding the recent launch of spot Bitcoin exchange-traded funds, as well as anticipation over its acceptance as an asset to be owned by corporate treasuries and held on the balance sheets of central banks. Of course, past performance is no guarantee of future results, and it's extremely difficult for even professional analysts to accurately predict crypto market movements.
