Bitcoin vs Ethereum: Which is a Better Investment?

Bitcoin vs Ethereum: Which is a Better Investment?

The cryptocurrency network is now worth quite Canada’s GDP. With a current market capitalization of around $1.8 trillion, it surpasses Canada’s GDP of $1.6trillion by about $200billion.

That is to mention; if the cryptocurrency market were rustic, it’d have an attempt at being a member of the G7; wouldn’t that be a sight?

At the zenith of this towering empire lie Bitcoin and Ethereum, these two digital asset’s structures $1.3 trillion of the entire $1.7trillion of the cryptocurrency market. These two coins rank 1st and 2nd in popularity and value. This position makes these two tokens a healthy and safe investment.

Many investors are usually sceptical on which asset to take a position in and how to take a position. To help you create a choice, we’ll explore both tokens, give our pick after a correct analysis and recommend investment options.

BITCOIN:

Bitcoin traded at $61500 on exchange.

This exponential growth is relished by tons of investors and keeps attracting new investors everyday. But this growth also comes with its worries, many individuals and analysts are afraid that such an increase could lead to the worth of Bitcoin plummeting. They argue that Bitcoin lacks intrinsic value and can soon become worthless.

Based on present facts, such fears are unfounded, Bitcoin does have intrinsic value. Aside from valuation, it’s serving because the most trusted digital currency also is a hard and fast asset, tons of individuals who own Bitcoin buy as a sort of long-term investment, hoping to sell when its value appreciates or to carry as a sort of security.

This value isn’t just arbitrary, institutions firmly back it. In fact, the rise within the value of Bitcoin is fuelled by the interest of corporations or institutions, as seen in its recent increase to $50,000. This increase came after Tesla announced it bought $1.5 billion worth of Bitcoin.

Considering the institutional backing Bitcoin has, one can safely accept that Bitcoin isn’t losing value anytime soon and that we can still expect a rapid climb.

All indicators point to Bitcoin reaching the $100,000 mark before the top of the year.

ETHEREUM:

It started the year at $730 six weeks later, it was at $2030. A bullish run that saw a nearly 300% gain in its value.

No other digital asset shows tremendous potential for growth this year, quite like ethereum does.

Presently 68% of ethereum is held in wallets with a minimum of 10,000 ethereum, this signifies that the big whales are having an excessive quantity of ethereum for long-term, and more ethereum is being removed from crypto exchanges in large amounts.

This increased interest to carry comes as a result of the anticipated upgrade of the ethereum system to ETH2.0. These upgrade aims to unravel tons of issues on the ethereum network and improve the network’s potential.

But a key component of this upgrade that’s expected to drive the worth of ethereum to higher levels is that the upcoming London fork, slated to require place within the month of July.

This particular phase of the upgrade comes with a critical change, previously gas fees for transactions were paid to the miners, but with this upgrade, these fees are going to be sent to the ethereum network itself, where they’re going to be burnt (erased from existence), reducing the amount of ethereum alive , and triggering a big bullish run as relative scarcity causes a rise in value.

Which is a better investment?

We will go with Ethereum.

The planned upgrades to the ethereum blockchain, gives it an edge over Bitcoin as a usable asset, making it a better choice for transactions.

This upgrade and the proposed ether burning (EIP 1559) show potential for massive gains that will eclipse whatever value appreciation Bitcoin undergoes.

Another development to notice is that the resurgence of Defi (Decentralized finance) which is predicated on the thought that cryptocurrency technology can create an open alternative to traditional financial instruments such as savings, trading, loans, and more.

The growth of the Defi ecosystem of which ethereum is that the commonest remains set to draw in more users. This is expected to drive the worth of ethereum higher.

How to invest?

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