Ethereum vs Bitcoin: Which One Should I Pick?

ethereum vs bitcoin crypto which is best cryptocurrency btc versus eth

Cryptocurrencies have been hot on the tip of everyone’s tongue these past few months. Everyone from governments to eccentric billionaires have been continually weighing in on the crypto saga. And as a result, prices have been fluctuating wildly from mad highs to insane lows. 

At the end of the day however, it is clear to just about anyone that cryptocurrencies are more than likely here to stay. 

Considerations When Investing 

However, the market for cryptocurrencies can be an unforgiving place due to its extreme volatility. 

In 2021, the prices of Bitcoin and other cryptocurrencies fell by more than 50% from a combination of Tweets from Elon Musk and announcements by the Chinese government. 

To any investor, such a drastic shift in prices can be terrifying given how quickly your entire portfolio can be devalued overnight, even in 2023 or 2024. 

While scary, this extreme volatility is what attracts many investors to the crypto market. The opportunity to double or even triple your investment in just a matter of days is something that’s too difficult to ignore. 

Additionally, the cryptocurrency market has oftentimes adjusted quickly to changing market conditions. 

Being entirely unregulated and decentralized, crypto assets are technically unaffected by government interference. 

So if you are looking to get in on some of that sweet crypto action, you are probably asking yourself right now - what type of cryptocurrency should you get into. 

Bitcoin (BTC) and Ethereum (ETH) are the two most obvious choices for any investor. But if you had to choose between them, which cryptocurrency would you take? 

Read on to see our breakdown on Bitcoin vs Ethereum crypto. 

Bitcoin - BTC 

The oldest and most popular cryptocurrency in the world, Bitcoin has been around for more than a decade having first appeared in 2009. 

Bitcoin first found its place as a medium of exchange on the deep web where it was prized for its ability to keep transactions anonymous. Also, it proved to be a great way for individuals to transfer huge quantities of funds quickly without having to make use of a bank. 

Developed by the mysterious Satoshi Nakamoto, Bitcoin was originally intended to be a new form of currency that would be inflation proof. 

This is because Bitcoin has a finite supply and once this limit has been reached, no additional Bitcoins can be mined. Because of this, it is theoretically impossible for there to be an oversupply of Bitcoins - ruling out inflation. 

Bitcoin has often been described by many as being akin to digital gold. This is because Bitcoins are relatively liquid and the market for it is decentralized. Hence making it something like a safe haven asset for investors. 

Of course, this has also been disputed by other experts who view Bitcoin and the entire cryptocurrency market with distrust. The fact that the crypto market was so easily manipulated by a single individual through a series of tweets is one clear reason why. 

But these incidents do not affect the market for Bitcoins exclusively. Instead, any shifts in the Bitcoin market oftentimes flows over into the market for altcoins i.e. Ethereum, Litecoin, etc. At the end of the day, Bitcoin still remains to be the most popular cryptocurrency in the world. This makes Bitcoin surprisingly liquid and because of its decentralized nature, it can be used to bring financial services to isolated or oppressed communities. 

Ethereum - ETH 

No discussion about Bitcoin would be complete without a breakdown of its closest rival - Ethereum. 

Released in 2015 and developed by a team of developers including Vitalik Butarin, Ethereum was designed to correct all of the shortcomings present in Bitcoin. One example of this can be seen in the difference between Ethereum and Bitcoin transaction times. 

Ethereum is able to process a higher volume of transactions within a shorter period of time. Hence making Ether superior to Bitcoin in that regard. 

Also, Ethereum is able to support the creation of applications and smart contracts - something severely lacking in Bitcoin. 

Smart contracts allow users to create contracts that automatically execute themselves without any external intervention. This then allows separate parties to carry out transactions and agreements amongst themselves without having to include a central or legal authority of any kind. 

Besides smart contracts, Ethereum can also support the creation of decentralized finance (DeFi) apps. These applications allow users to create their own financial instruments and borrow or loan cryptocurrencies. 

And finally, we have NFTs or non-fungible tokens that are powered by the Ethereum blockchain. Simply put, these are one-of-a-kind trading tokens that can come in the form of anything. From pieces of work to audio clips, NFTs are seen by some as being an evolution of collecting art. 

Remember you can store your Ethereum with total safety if you get one of these wallets: 

Closing Thoughts On BTC vs ETH

Compared head-to-head, Bitcoin and Ethereum are both very different cryptocurrencies. However as a valid investment, both of these assets have their own benefits. Bitcoin is and will likely be a good store of value for the foreseeable future while Ethereum’s potential uses make it worth looking at.

Official Bootstrap Business Blog Newest Posts From Mike Schiemer Partners And News Outlets