Is #ETH or #BTC a more profitable investment instrument in the long term?
Correlation and Latest Trends:
In the past, the price movements of Bitcoin and Ethereum often moved together, but this relationship has weakened recently. The correlation has fallen to its lowest level since 2021, indicating differences in market behavior. While Bitcoin's market movements are often driven by macroeconomic factors and its role as "digital gold," Ethereum's value is increasingly associated with blockchain applications and ecosystem developments.
**Future Profitability:**
1. **Ethereum's Potential:** Ethereum has strong growth potential due to its large ecosystem. As more dApps are developed and more projects use the Ethereum blockchain, demand for ETH may increase. Additionally, Ethereum is expected to benefit from scalability improvements in the future, with it expected to be able to process more than 100,000 transactions per second.
2. **Stability of Bitcoin:** Bitcoin's limited supply and value proposition as a digital store of value make it attractive for long-term holding. Its security and decentralization are unparalleled, which can ensure its continued relevance and steady growth in value, especially as events such as ETF approvals increase market presence.
**Conclusion:**
While Bitcoin offers greater stability and a proven track record as a store of value, Ethereum's broad use cases and network improvements could make it more profitable in the long run. Ethereum's growth potential could be attractive to investors, especially as the ecosystem around smart contracts and dApps grows. On the other hand, those looking for stability may prefer Bitcoin. Diversifying both cryptocurrencies in the portfolio can be a strategic approach.