Two of the most important, valuable, and influential digital currencies in the world have always been bitcoin and ethereum. For years now, and the better part of the last decade, they have been the leading examples of how digital currencies have to look, feel, and work. Similar but still rather different, they complement each other well because they can both exist on the same market and appeal to the same people. What is more, most investors have their money in both since a diverse portfolio is the bread and butter of a good businessperson.
If you are looking to start your cryptocurrency career but are unsure what to invest in initially, worry not. By the end of this article you will have learned all there is to know about the differences between the two best digital currencies in the world and which one is more profitable. If you are still looking to find out additional information on the subject at hand, we advise you to visit this site.
Bitcoin, the first and still the best digital currency, was traded for the first time in now ancient (at least in terms of technology, pop culture, and world views) 2009. A single token, or 1 BTC was initially worth less than 1 cent. Fast-forward some 12 years and in 2021, at the moment of writing, a single bitcoin is worth over $49,000. What is more, it is experiencing its highest surge rate in history with steady grows happening constantly. The inventor of the leading crypto is Satoshi Nakamoto, who decided to cap his treasured coin to 21 million.
On the other hand, ethereum was late to the party as many other digital currencies appeared between it and bitcoin. Debuting in 2015 for slightly under $3 per token, ether, which is the actual name of the coin itself, quickly rose and dominated the market. Right now, as we are writing this, one ether is valued at more than $1,800. Like bitcoin, is it also slowly rising each day, a trend that has been going on for months. Unlike its biggest rival, ethereum is not capped and has an infinite, unlimited max supply. Vitalik Buterin, Joseph Lubin, Gavin Wood, and their associates opted for this approach since their crypto is also a software platform.
Which One Should You Pick?
Well, the answer to such a difficult and complicated question can hardly be easy or straightforward. Most experts and experienced investors should advise you to follow both equally, get your head in both camps and invest in both. What is more, they would highly recommend you invest in both, and much more than in any other digital currency you may like. It is always smart to be a part of the leading climate in a market, and it is that much better and more favorable to be a part of the top two clubs.
However, there are some things to prepare for. Bitcoin is infamous for its spikes and drops in value, but they have somewhat slowed down in the last year or so. What is more, the halving events that cut the block rewards for the miners by half are capable of changing the whole market, making many people unhappy at once. The third halving event happened on May 11, 2020, and so far the prices have been more than satisfying. Another halving is surely to happen, but by then the price for 1 BTC will increase a lot. Most experts suggest that bitcoin is nowhere near its full potential yet and that the best is yet to come. An example of this has recently happened when Elon Musk and his Tesla invested $1.5 billion in bitcoin, a financial injection that saw the coin rise in value by 15% in a single day.
Remember how we said that ethereum is not just a coin? Well, that is because it uses the blockchain tech for more than mere transactions of crypto coins. It is their software platform that we have to thank for such useful things like smart contracts, decentralized financing (DeFi), and decentralized apps (dApps). These are all possible thanks to their no-third-party platform that allows the creation and usage of independent, decentralized applications and finances. Developers, programmers, and designers can use ethereum to make new apps and software for all to use, without no corporations or organizations overlooking it like they do on Apple or Google stores. And then there is the ether, their coin, which is still incredibly useful and full of potential.
It is hard and complicated to give you a specific answer to the question of which one to invest in. If you want to do the smarts thing in the book here, you will invest in both and make them the go-to direction of your investment money, time, and trust. Combined, they have the potential to change the future of finances, business, and daily life while doing their own things and not getting in each other’s way.
That is exactly why both are so prominent after years of battling each other on the same market. It is the actual lack of such a battle that has allowed them both to prosper independently since they are doing different things. Bitcoin will always be the leader for transactions and a model, example cryptocurrency everyone should have. On the other, hand, the ethereum platform will be there for the developers to make useful decentralized apps for everyone to use while offering a very neat coin on the side.
Some have tried to compare the two to gold and silver, but this is not accurate. Many would probably take gold over silver every time since it is more precious and valuable and there is less of it still to find (mine). Others say Bitcoin is like Batman while ethereum is like Robin. In reality, they would be more like Superman and Batman, where bitcoin is the strongest of all digital currencies and a tough one-on-one opponent in its transaction game, but ethereum is so much more than a traditional cryptocurrency because it also invents new stuff, helps others, and has a whole system (platform) where others can prosper.