Bitcoin has been in the digital currency market longer than Ethereum and many other cryptocurrencies. The introduction of Bitcoin in 2009 did not make a significant impact since only a few people knew about them. However, as time went by and individuals started learning about fiat money and its decentralization, Bitcoin became popular, and it grew very fast. On the other hand, Ethereum was introduced in 2015 and immediately picked due to the hype created around cryptocurrency by Bitcoin. People stopped worrying about financial intermediaries such as banks and PayPal. Also, cryptocurrencies became a better investment than silver and gold due to the fast increase in value, hence making massive profits within a short time. Nevertheless, the quick surge and plummeting of Bitcoin price have led individuals to question whether it is a better investment compared to Ethereum.
Of course, there are several things to consider when choosing cryptocurrency as an investment before making a final decision to either buy Bitcoin or Ethereum. The first issue you should consider is the uses of each crypto coin. For instance, Bitcoin is used in various ways including buying and selling goods online. Also, Bitcoin is used as a currency in peer to peer transactions, and it provides anonymity for the people transacting to remain anonymous. Additionally, Bitcoin has proved to be incredibly resilient with the ability to drive its value and that of other crypto coins in the market up and down. Other advantages of investing in Bitcoin include high market cap and high prices, which translates to massive profits if you buy during a surge.
Subsequently, Ethereum has its advantages, and some are more useful than Bitcoin to long-term investors. Many organizations have begun to adopt Ethereum to raise capital instead of using venture capital. Also, people use Ethereum to create ICOs and get tokens. Indeed, when you need tokens all you have to do is send Ethereum equivalent to the tokens you require to a particular ICO address and get your tokens. Such achievements cannot be done using Bitcoin. Notably, the codes used to create Ethereum are more complicated and secure than those utilized in the creation of Bitcoin.
You should know that as more people buy and mine Bitcoin, the transaction charges increase, hence making it expensive to trade with or invest. In addition, the time taken for one transaction using Bitcoin to be confirmed is more compared to that used in Ethereum transactions. As Bitcoin programmers still struggle to adopt the use of lightning networking for faster transactions, Ethereum has adopted it in full scale thus reducing the time taken to verify a single transaction. In the future, Ethereum has stated that they will venture into staking as a way of confirming transactions instead of mining. According to experts, staking is more secure and efficient since it verifies a transaction but keeps your crypto coins in your wallet. Thus, no third party can access or steal your coins. Of course, there are plans underway to improve Bitcoin and the way it is used; however, this may take some time.
Now that you know some of the benefits of using either Bitcoin or Ethereum, you should do more research to determine which one is better as a long-term investment. Buying Bitcoin because everyone else is buying may not be such a great idea. Similarly, investing in Ethereum because it has small transaction fees is not wise. First, understand everything about each coin and make your decision depending on which currency serves you best. Bitcoin might be better as an investment for an individual, but Ethereum has proved to be the best investment for large companies as they are more useful as trading capital.
Reference Links :
https://usethebitcoin.com/will-ethereum-better-investment-bitcoin-2018/
