Investing in Cryptocurrencies like Ethereum and Bitcoin has become very popular since the last decade. With some outstanding returns on investment, there is no surprise that investors are taking a keen interest in investing in Bitcoin. Cryptocurrencies’ financial market is quite volatile compared to conventional financial markets. Despite the nature of Cryptocurrencies, investors are ready to take the risk of trading them. So, Ethereum is also gaining incessant popularity over the recent times in the financial market.
With access to applications like Bitcoin Code, trading Bitcoin and Ethereum has become quite easy. However, several investors are confused about which Cryptocurrency is better, Bitcoin or Ethereum. As such, this article will clear this confusion for the investors to make a better choice. Read until the end.
Bitcoin
Bitcoin is considered to be the most valuable Cryptocurrency in the market today. The market capitalization of Bitcoin is nearly $800 billion. None of the other Cryptocurrencies compared to Bitcoin have even more than $100 billion today. Looking into the trading history of Bitcoin, the most appealing feature of this Cryptocurrency is that it is scarce.
Only 21 Million Bitcoin can be mined; 18.9 million, or 90%, have already been mined. Bitcoin is also the first Cryptocurrency that has offered future contracts giving an allowance to the investors to wager in prices at some prespecified dates. As the investors are interested in accessing Bitcoin, it allows people to earn while shopping online.
Ethereum
Ethereum nowadays is considered the second-best Cryptocurrency in the financial market. With a market capitalization of $380 billion, Ethereum is giving tough competition to Bitcoin. Experts state that comparing Ethereum and Bitcoin is like comparing electricity with Gold. Trading Ethereum brings in countless virtual possibilities as well.
One of the best features is that other Cryptocurrencies can be issued on Ethereum. Non-fungible tokens can be traded with full liberty on this platform. Also, the transactions made through Ethereum are faster than the transactions made through Bitcoin. However, the only drawback that comes into existence is that high gas fees are charged when providing the convenience of faster transactions.
Bitcoin VS Ethereum
Even though Bitcoin is the first Cryptocurrency introduced in the financial market, Ethereum is the first Cryptocurrency that has gained widespread adoption and high popularity. The market share of Ethereum is also high in the non-fungible token space.
When it comes to competition, the level of Bitcoin remains unmatched. Even though Ethereum has potential long-term investment into Bitcoin is like digital Gold. Just like Gold under forms stocks, the value of Bitcoin also underperforms the value of stock markets. The biggest reason investors are trading today is its acceptance as a store of value.
The Bottom Line
When dealing with investment into Cryptocurrency, investors should make an informed and responsible decision on which Cryptocurrency to trade. Both Bitcoin and Ethereum are giving tough competition to each other, but certain characteristics and features of both Cryptocurrencies make them distinctive. Hence, before investing in any Cryptocurrency, the pros and cons should be perfectly analyzed.