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November 27, 2022
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Guide & Analysis

Bitcoin or Ethereum? – Webitcoin

Bitcoin undoubtedly the dominant crypto, but recently the native token of the Ethereum, the ether, emerged as more than just a clear number two.

Although the two cryptocurrencies are very different in terms of structure and use cases, both are the main options for long-term cryptocurrency investors.

Some experts have talked about which cryptocurrency you prefer or believe to be the best to have in the next 10 years and why:

“Bitcoin will be as transformative for money as the Internet was for information. By mid-2028, bitcoin’s market capitalization will overtake gold’s market capitalization, demonstrating that it is the best value store asset for a digital world in the first place. But it does not stop at the store of value. Bitcoin is a decentralized monetary settlement network and a digitally scarce asset. Today, Ethereum powers most DeFi platforms (decentralized finance), but in the near future, we will be able to build DeFi platforms on top of Bitcoin thanks to layer 2 solutions. Eventually, Bitcoin will become the global standard of value and the world’s monetary settlement layer. For these reasons, I put most of my net assets in Bitcoin, not Ethereum. ”- Jason Yanowitz, co-founder of Blockworks.

A little more briefly, the CEO of GMO-Z.com Trust Company, Ken Nakamura commented:

“Bitcoin is strengthening its position as a store of value and the narratives surrounding BTC as“ protection against potential inflation ”and“ possible replacement of gold ”are becoming clearer. With all the big companies entering the space with several financial institutions starting to keep BTC on their balance sheets, there are more advantages and the price will be driven mainly by increased participation in the ecosystem ”.

Bitcoin card fan Jamie Finn, president and co-founder of Securitize shows that his biggest concern is still with inflation:

“Bitcoin is the brand that everyone knows and has already proven its staying power. Ethereum is the new kid on the block and a challenger. ETH was sold as having mystical practical applications, but in reality, it is inefficient, struggles to operate on a scale and is not a protection against inflation ”.

The Executive Director and Head of Alternative Investments at Direxion, Ed Egilinsky comments:

“I think that Bitcoin will always have some level of acceptance, being the flagship of cryptocurrency and a store of value perceived in space. However, Ethereum’s blockchain technology having more applicability and functionality (including recent smart contracts for NFTs) makes it potentially more attractive in a long-term game. In addition, the current price disparity between the two may make Ethereum also seem more accessible to the average investor ”.

Great point of view from Megan Kaspar, managing director of Magnetic, a technical comment and of great value to those who might not have thought of it that way.

“The recognition of ETH by institutional investors as a real and valuable asset has long been expected and anticipated. I predict that Ethereum’s current price increase trend is gaining more momentum, leading to a shift in the flow of capital to Ethereum – as investors become educated about what ETH is and how technology will shape the future… Technical data and fundamentals show that there is more potential for long-term appreciation for ETH than for BTC… Most banks, institutions and investment funds have determined investments in clean and environmentally sustainable technologies and industries. Concerns about how and where most bitcoin is mined today can negatively impact the price of long-term assets … The next network updates from Ethereum, EIP1559 and Proof of Bet, will make ETH a deflationary asset while reducing gas charges and will reduce the total supply of Ethereum. When these two changes occur, they could push Ethereum beyond the $ 1Q market value. Regardless of whether Ethereum’s network changes start a super cycle or not, the asset undoubtedly has 5X more developers, more activity in the chain and exponentially more active use cases than any other blockchain. ”

Steve Ehrlich, CEO and founder of crypto brokerage Voyager Digital, shows full interest in wearing the Ethereum team shirt in this comparison between the two assets.

“I believe that Ethereum’s potential advantage tends to be somewhat greater due to its usefulness, functionality and ecosystem. Voyager customers, who own Bitcoin and Ethereum, have changed their cryptocurrency allocations in recent months to increase their holdings in Ethereum, on which they can earn 5.25% APR interest. We are also seeing our large investors more comfortable taking on the risk and reward profile of Ethereum. The Ethereum blockchain fuels the most established ecosystem for decentralized finance, utility tokens and NFTs, all of which are gaining momentum. Ethereum will also soon be undergoing an update that will accelerate the speed of ETH transactions, reduce transaction fees and restrict its circulation supply. ”-.

The world can be broadly divided into traders and investors. Traders focus on short-term price movements and arbitrage opportunities and, with good reason, are excited by the relative movements of Bitcoin compared to Ethereum now. Investors focus on what the future will look like, what are the favorable winds that drive the projects and how the value will be captured by some and lost by others. For investors, BOTH, Bitcoin and Ethereum need to be in their portfolio now … Bitcoin has a chance to remain the world’s leading crypto, while Ethereum has a chance to remain the world’s leading distributed software development platform. Both leadership positions would capture trillions of dollars worth in ten years.

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