With cryptocurrencies giving stellar returns on investments, no wonder why investors are so keen on getting their hands on the most promising digital currencies. At present, the market has thousands of cryptocurrencies vying for investors’ attention, but more than half have no real intrinsic value, and hence, don’t deserve your attention. But when we talk about the top-performing cryptocurrencies, the discussion can never really be over without talking about Bitcoin and Ethereum. A quick conversion of 1 BTC to INR will show you how powerful this cryptocurrency is, and the same goes for Ethereum.
But if you have to pick one between Bitcoin and Ethereum, which one will you choose? It is a burning question that has often received mixed responses from investors. But if you’re clueless at this point and want some guidance in the right direction, this article can help. To help you pick one between Ethereum and Bitcoin, we’re listing down essential information about both cryptocurrencies that will help you make an informed selection.
Bitcon: The Evergreen Cryptocurrency
BTC, or Bitcoin, as most call it, has been dominating the cryptocurrency space ever since its launch in 2009. At present, the market capitalization of this popular crypto is approximately $ 800 billion. No other coin is even $ 100 billion today, apart from Ethereum, which is why the Bitcoin Vs. Ethereum debate exists. Besides the unmatched trading volume, dominant popularity, and greater acceptance, what makes Bitcoin valuable is its scarcity.
The cryptocurrency market can only have 21 million BTC, and around 90% are already in existence today. Once the Bitcoin demand surpasses the total supply, the price of Bitcoin will soar sky-high. So if you don’t have any Bitcoin added to your portfolio, you might want to consider buying it before its prices start skyrocketing due to scarcity. In addition to these things, investors should also be aware of the following points while choosing between Bitcoin and Ethereum.
Adoption & Belief
Bitcoin has been seen as the gold equivalent of the cryptocurrency world. Though this belief cannot be quantified, it is undoubtedly strong enough to make many multi-billion dollar companies hold and own these in their balance sheets. If you check the acceptance rate of Bitcoin compared to other cryptocurrencies, Bitcoin will top the list of most widely accepted digital currencies.
One pressing issue that can put Bitcoin backward is its energy consumption. Bitcoin’s mining process requires a significant amount of energy, and it has even been called out as the biggest energy hogger of all the other cryptocurrencies available in the market. It is believed that Bitcoin mining alone consumes around 0.5% of all energy consumed in the world. It will certainly not go down well with environmentally conscious people.
Besides the energy issue, Bitcoin is also facing the threat of getting banned by certain countries. China, for example, has banned the mining of Bitcoin and cryptocurrencies, in general, in 2021 to promote its digital version of fiat currency. Bitcoin’s valuation will be in deep trouble if more countries follow suit.
Now that you’re aware of essential points around Bitcoin let’s head to Ethereum.
Ethereum: The Most Popular Altcoin in Existence
While Bitcoin and Ethereum are built on blockchain technology, they both serve different purposes and have different internal dynamics. If Bitcoin aims to become the future currency, Ethereum aims to help developers build decentralized apps in a secure environment with its smart contract features. Because of the strong use case, today’s ETH to INR value is pretty impressive and tempts investors to add it to their portfolio. But there’s more to know before making an investment decision.
Better Use Cases
If Bitcoin is gold acting as a store of value, Ethereum is electricity that powers various things in the online space. There is no real and viable comparison between the two. If you evaluate these cryptocurrencies based on use cases, Ethereum will have a strong case. At present, different platforms related to NFTs, Defi, play-to-earn, and more are hosted on the Ethereum blockchain network, giving the cryptocurrency’s price point an edge over others.
High Gas or Transaction Fees
Despite having stellar use cases, Ethereum falls back on account of high transaction fees in the form of gas. Ethereum sure does offer faster transaction speed than Bitcoin, but it also levies a hefty transaction cost which is not feasible by many. The gas fee is used to reward miners who validate transactions by putting much effort.
Slow Transition to Ethereum 2.0
To address the drawbacks of high transaction fees and energy usage, the founders of Ethereum have declared to shift their protocol from Proof-of-Work to Proof-of-Stake. The latter uses less energy and rewards its transaction validators without keeping the transaction fee sky-high. The transition is expected to be slow yet certain.
Bitcoin or Ethereum: Where to Put Your Money?
If you like investing in cryptocurrencies that have real-life value, you can pick either of the two. The decision will be more personal and influenced by individual investment goals and preferences. Always remember that both are volatile currencies, so invest after conducting your own research to be safer.