Even if you’re not an expert in the cryptocurrency market and even if you’ve never invested in a digital asset, it is more than likely that at some point you’d have heard of Bitcoin or Ethereum. These two cryptocurrencies are what people consider the most stable and safe investments when it comes to the industry, especially in comparison to other coins on the market. This has seen them skyrocket in popularity, grabbing the top two spots as the most popular cryptocurrencies to invest in.
Bitcoin currently leads Ethereum in market cap with the former having an astonishing cap of $440 billion. Ethereum on the other hand currently has a market cap of $147 billion. Looking at these figures it is clear to see that Bitcoin is quite far ahead, but that could be put down to it releasing long before Ethereum. So, which is best to invest in? This article will compare the two so that you can make an informed crypto investment decision.
Network Utility
One of the biggest critiques of Bitcoin is the fact that many believe that it has no real value, and it doesn’t play any essential role in an actual project or system. The critique can be boiled down to saying “Bitcoin has no utility other than being a store of value”. Of course, to those who simply want to gain from their investments, this might not sound important, but it is…
Ethereum on the other hand is a project and coin that brings virtually unlimited possibilities. Many other cryptocurrencies on the market use the Ethereum protocol to be issued, along with other digital assets like NFTs being freely traded on the Eth network. This could work in Ethereum’s long-term favour, as more and more people will invest, driving up its value.
Transaction Fees
This is one area where Bitcoin trumps pretty much every other cryptocurrency on the market – it has extremely low transaction fees, and on many platforms, trading Bitcoin is virtually free. Ethereum on the other hand has high transaction fees, though experts suggest that the rise in popularity of the coin means it could soon catch up to Bitcoin in this category.
Ethereum however does beat Bitcoin when it comes to transaction speed, as transfers are almost instantaneous, while Bitcoin transfers take a bit more work due to the network protocol on which it exists.
Final Verdict
The two categories compared are the most important for new investors when deciding on which cryptocurrency to purchase. Cryptocurrency guides can also help in this regard as they offer a wealth of information.
On the face of it, both of these options are strong, as they are relatively stable compared to the volatile market.
When going a bit deeper, Ethereum seems to trump Bitcoin in most categories, and that isn’t even mentioning the skewed energy consumption rates that Bitcoin tends to produce. Ethereum, for the time being, seems to have more potential to be a successful long-term investment option.